US Energy Dominance Under Threat
The United States’ energy dominance is now under direct threat, according to six US senators.
That is according to an open letter sent to US Secretary of State Mike Pompeo on the 25th March, which was signed by six US senators.
“During this time of pandemic and global economic crisis, the Kingdom of Saudi Arabia has chosen to settle scores in the oil market,” the senators stated in the letter.
“Riyadh’s motivation may be multi-faceted – to punish the Russians, to capture near-term market share, to destabilise long-term investment in American energy – but the end result is the same,” the senators added.
“Our nation’s energy dominance, which President Trump has carefully nurtured over the past three years, is now under direct threat from a country which professes to be our ally,” the senators continued.
The senators went on to say that Saudi Arabia “must change course” and noted that the Kingdom “risks its bilateral relationship with the United States”.
Saudi Arabia was also encouraged to leave OPEC “immediately” and join the US as a “free market energy powerhouse” in the letter, which warned that the US “retains enormously powerful tools” at its disposal.
“In addition to the various types of aid and assistance we already provide – none of which should ever be offered perpetually and unconditionally – we are reminded of the levers of statecraft the Administration is empowered to exercise,” the senators stated.
“From tariffs and other trade restrictions to investigations, safeguard actions, sanctions, and much else, the American people are not without recourse,” the senators continued.
Last week, Mr Pompeo revealed that he had spoken with Saudi Crown Prince Mohammed bin Salman Al Saud about stabilising energy markets. The move drew mixed responses from analysts.
According to BP’s latest statistical review of world energy, which revealed production figures up to 2018, the United States was the top oil producing nation that year, pumping 15.3 million barrels of oil per day. Saudi Arabia ranked second, producing 12.2 million barrels per day (MMbpd), and Russia was third with 11.4MMbpd.
Source: Rigzone