05.13.20

Sullivan on Saudi Arabia’s Commitment to Additional Oil Production Cut

WASHINGTON, DC – U.S. Senator Dan Sullivan (R-Alaska) released the following statement on the announcement that the Kingdom of Saudi Arabia will be cutting an additional one million barrels of oil in daily production. This reduction is in addition to the significant decreases that Saudi Arabia agreed to on April 12 following pressure from Senators Kevin Cramer (R-N.D.) and Sullivan, who in March introduced legislation to remove U.S. troops and weapons systems from the Kingdom. Once all of the reductions are put into effect, Saudi oil production is expected to drop to 7.5 million barrels per day from a high of 12.3 million barrels—the lowest level of production since 2002.

“Over the past few weeks, I have personally pressed the Saudi energy minister to do more beyond the April OPEC agreement, so this is a positive development that indicates the Saudis are ready to do more,” said Senator Sullivan. “Still, it’s important to remember that the actions Saudi Arabia took to increase production during the pandemic have already wreaked havoc on our energy markets with a loss of jobs for thousands of hard-working Americans and many independent energy companies being forced to close up shop. The cumulative reductions committed to by the Saudis, along with increases in demand, should bring about much-needed stability to energy markets in Alaska and throughout our country as we work toward a full economic recovery. I commend President Trump and his administration for their leadership on this challenge and unwavering support of our energy sector, our incredible workers and their families.”

Background:

  • On March 16, Senator Sullivan, Senator Kevin Cramer (R-N.D.) and eleven other senators sent a letter to Saudi Crown Prince Mohammad bin Salman bin Abdulaziz Al Saud urging the Kingdom of Saudi Arabia to halt its destabilizing actions as the rest of the world struggles with the economic impacts of the coronavirus pandemic. Sullivan and Cramer reiterated the call in a discussion with the Saudi Ambassador to the United States later in the same week. 
  • On March 20, Senator Sullivan joined a letter with Senator Jim Inhofe (R-Okla.) to U.S. Secretary of Commerce Wilbur Ross urging him to investigate excessive dumping of oil by Russia and Saudi Arabia.
  • On March 26, Senators Sullivan and Cramer, both members of the Senate Armed Services Committee, introduced legislation to remove U.S. Armed Forces from Saudi Arabia. 
  • On April 3, Senators Sullivan and Cramer attended a meeting at the White House with President Donald Trump and energy leaders, and released the following video afterward. 
  • On April 11, Senators Sullivan and Cramer led a nearly two-hour call between a group of senators and Saudi Arabia’s Energy Minister, Prince Abdulaziz bin Salman Al Saud, and Deputy Defense Minister, Khalid bin Salman bin Abdulaziz Al Saud to highlight the importance of securing an agreement and following through on it.
  • On April 12, Saudi Arabia, Russia, other members of OPEC+, and the U.S.—23 countries in total—agreed to collectively withhold 9.7 million barrels a day of oil from global markets. That agreement took effect on May 1. 

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