TEXAS: The US Interstate Oil and Gas Compact Commission (IOGCC) has passed a resolution to investigate dumping of crude on US markets by Saudi Arabia and Russia.
The effort was initiated by Railroad Commission Chairman Wayne Christian, a Republican from Texas, demanding that the government investigate excessive dumping of crude oil.
“For much of 2019 and early 2020, Saudi Arabia shipped relatively little crude to America, with average arrivals running at about 475,000 barrels a day,” said Christian. “After the covid-19 pandemic crippled the US oil and gas industry, Saudi Arabia shipped 1.3 million barrels a day to our nation, roughly four times February’s daily volume and the highest figure since 2014.”
He further mentioned that the US has become the top producer in the world after producing a record 12.4 million barrels in August 2019.
“Flooding the market during ongoing negotiations with President Trump and the international community is disingenuous,” continued Christian. “More than 100,000 oil and natural gas jobs in the United States have been lost according to Rystad Energy Group. Our federal government must push back against international efforts that harm American energy dominance.”
In mid-April, Frank Fannon, the US assistant secretary of state for energy resources, said the country could impose tariffs on Saudi oil.
US President Donald Trump had also warned Saudi Arabia earlier that month that he would end American military support for the kingdom if Riyadh did not end its oil price war with Russia and cut production.