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U.S. Congressman Garret Graves released the following statement after the U.S. Department of Energy (DOE) announced crude oil storage contracts with nine companies to help store 23,000,000 barrels of U.S. produced crude oil in the Nation’s Strategic Petroleum Reserve (SPR).
“We’re seeing a drastic decrease in demand for oil right now as communities are working together to flatten the curve. With that being said, if the oil isn’t being used and Russia and others have dumped extra oil on global markets, it has to be stored somewhere. I applaud DOE for working quickly to help absorb some of the excess oil supply. Awarding these contracts is a major step in multiple ways – it helps stabilize the global market, makes us more energy independent, and gives U.S. companies and the workforce a chunk of change to stay afloat as the demand and supply of oil are exacerbated by the COVID-19 pandemic. This an important component to a larger solution to help stabilize energy markets,” Graves said.
To read the DOE press release, click here.
Yesterday, a deal was reached to cut production of 9.7 million barrels a day to begin on May 1 by OPEC, Russia and other oil-producing nations, a total of 23 countries. The cut, nearly a tenth of the global supply, will ease the crashing prices that stem from the COVID-19 pandemic and the ongoing price war.
“Unchecked actions by Russia and OPEC nations pose significant threats to our environment and economy. And amidst a global pandemic, it was absolutely wrong of Russia, the Saudis and others to take advantage of the first major decrease in energy demand in decades to advance their geopolitical agenda through economic warfare and flooding the market supply. I applaud the Department of Energy, Secretary Dan Brouillette, the President, and all involved in protecting our best interests and working to protect Louisiana jobs and our economy, to reduce emissions, and to stabilize global energy markets.”
Graves joined his colleagues last week calling upon the Crown Prince of Saudi Arabia Mohammad bin Salman to take immediate action in bringing stability to global crude oil markets. This letter followed after Graves had called upon the U.S. Department of Energy (DOE) to fill the Strategic Petroleum Reserve (SPR) to absorb the supply glut and to counter the economic warfare threats posed by Saudi Arabia, Russia and OPEC nations. Graves later applauded DOE for their decision to fill the SPR.