HEAT Members Urge Saudi Crown Prince to Restore Global Oil Market Stability
WASHINGTON, D.C.—Today, House Republican Whip Steve Scalise (R-La.) and HEAT members Rep. Mike Conaway (R-Texas), Rep. Chip Roy (R-Texas), Rep. Jeff Duncan (R-S.C.) and Rep. Markwayne Mullin (R-Okla.) led a joint letter to the Crown Prince of Saudi Arabia, Mohammad bin Salman urging him to take immediate action to bring stability – not further volatility – to global crude oil markets.
“The United States and the Kingdom of Saudi Arabia have an important strategic partnership that ensures regional stability, counters Iran’s malign activity, and defeats terrorists that threaten our security,” the letter reads. “The United States also remains committed to maintaining the strong economic ties between our two countries. We are concerned, however, with the Kingdom’s actions to artificially distort global crude oil markets as countries around the world struggle to address a growing economic and health crisis fueled by the COVID-19 novel coronavirus pandemic.”
“As recently as January, the Kingdom claimed that it would do all it could to ensure stability in the global oil market. But as a result of the Kingdom’s March decision to artificially depress global crude prices, thousands of American workers employed directly by our country’s oil and gas producers, as well as thousands more employed in related industries, face increased financial and economic uncertainty. While other global actors use oil and gas markets as political leverage, the Kingdom must be a model of leadership at a time when a global pandemic drives down demand resulting in significant market volatility. In the United States, the oil and natural gas industry is based on free market principles that resist anticompetitive conduct or government manipulation of markets. The Kingdom, however, can change course, reduce production, and restore balance to a market that has seen the most drastic price drop in years.”
The letter is being sent to the Crown Prince of Saudi Arabia, Mohammad bin Salman in response to the Kingdom’s decision last month that it will flood the market with cheap crude. Saudi Arabia asserts this action is in response to similar Russian production increases, which are directly targeting U.S. producers. The Kingdom's response, however, is also hurting U.S. producers and the thousands of workers they directly and indirectly employ. The U.S. and Saudi Arabia have a longstanding relationship that is being harmed by their conduct, and the HEAT leaders are urging them to show leadership and reverse course.
Read the full letter here.
The letter was signed by House Republican Whip and HEAT Co-Chair Steve Scalise (R-La.), Rep. Mike Conaway (R-Texas), Rep. Chip Roy (R-Texas), Heat Co-Chairs Markwayne Mullin (R-Okla.) and Jeff Duncan (R-S.C.), and Reps. Rick Allen (R-Ga.), Jodey Arrington (R-Texas), Kelly Armstrong (R-N.D.), Brian Babin (R-Texas), Troy Balderson (R-Ohio), Kevin Brady (R-Texas), Larry Buschon M.D. (R-Ind.), Buddy Carter (R-Ga.), Michael Cloud (R-Texas), Dan Crenshaw (R-Texas), Tom Emmer (R-Minn.), Ron Estes (R-Kan.), Bill Flores (R-Texas), Russ Fulcher (R-Idaho), Louis Gohmert (R-Texas), Paul A. Gosar, D.D.S. (R-Ariz.), Garret Graves (R-La.), Morgan Griffith (R-Va.), Jim Hagedorn (R-Minn.), Kevin Hern (R-Okla.), Jody Hice (R-Ga.), Clay Higgins (R-La.), French Hill (R-Ark.), Richard Hudson (R-N.C.), Bill Johnson (R-Ohio), Fred Keller (R-Pa.), Debbie Lesko (R-Ariz.), Carol D. Miller (R-W. Va.), Dan Newhouse (R-Wash.), Pete Olson (Texas), Greg Pence (R-Ind.), Guy Reschenthaler (R-Pa.), Mike Rogers (R-Ala.), David Rouzer (R-N.C.), Austin Scott (R-Ga.), Pete Stauber (R-Minn.), William Timmons (R-S.C.), Scott Tipton (R-Colo.), Steve Watkins (R-Kan.), Randy Weber (R-Texas), Bruce Westerman (R-Ark.), Roger Williams (R-Texas), and Don Young (R-Alaska).