Crude oil producers have called for their industry to receive the same national security attention from the Trump administration as steel and aluminum, Kallanish Energy sister publication Kallanish learns from the Panhandle Import Reduction Initiative (PIRI).
President Trump’s Section 232 investigation into steel imports has been lauded by domestic producers as a safeguard against dependence on essential military and infrastructure steel imports.
However, it has also been criticized as a loophole for enacting trade barriers that might not otherwise have been put in place under extant trade rules.
“Following the presidential memorandum on the case for steel against Chinese export practices that you signed, PIRI further calls for an immediate Investigation by the Department of Commerce of Saudi Arabia and OPEC abuse between August 2014 and March 2016 of the American oil industry, by expanding production to lower world oil prices to destabilize and cause hardships to American producers mainly of light tight oil (shale oil),” PIRI said.
“This was an announced effort to undermine and shut-down producers with higher costs of production. According to one estimate, some 150 US companies filed bankruptcy and $150 billion in capital outlay postponed or cancelled. More than 300,000 US industry-related jobs were lost.”
Independent oil producers represent about 54% of U.S. oil production and its associated steel demand, according to the Independent Petroleum Association of America.