La. lawmakers seek Saudi oil embargo, testing for energy workers

Louisiana’s federal lawmakers are ratcheting up the pressure for intervention on a behalf of an energy industry hammered by reduced demand and a Saudi-Russia feud.
U.S. Sen. Bill Cassidy, R-Baton Rouge and chairman of the Senate Energy Subcommittee, intends to introduce legislation when Congress reconvenes that would impose tariffs on oil imports from Saudi Arabia and withdraw American troops from the country.
Cassidy’s office said he bill is in response to Saudi Arabia’s manipulation of the oil market that is threatening American energy jobs.
Saudi Arabia has slashed oil prices below the cost of production, which has made it impossible for American producers to compete, Cassidy said in a press release. Saudi Arabia’s actions, coupled with a steep decline in demand due to the coronavirus lockdown, have put at risk the viability of the American oil and gas industry and the tens of thousands of jobs it provides.
“Our nation’s economy, national security and the economic welfare of families across Louisiana is threatened by oil being dumped on the world market at below-production costs. The US spends billions protecting other oil producing countries and their ability to safely transport oil around the world. Now is the time to protect ourselves. Tariffs will restore fair pricing. Withdrawing troops placed to protect others recognizes that friendship and support is a two-way street,” Cassidy said.
The bill requires that the United States removes all troops from Saudi Arabia 30 days after enactment, and it prohibits funds from being used to keep US troops there.
It also requires the president to impose tariffs on Saudi petroleum and any petroleum-related produce or byproduct to ensure the price of Saudi imports in not less than $40 per barrel, or face penalties.
Meanwhile, U.S. Reps. Clay Higgins, R-Port Barre, and Ralph Abraham, R-Alto, are asking for COVID-19 testing for oil and gas work-ers.
“At a time when Russia, Saudi Arabia, and OPEC are deliberately tanking the oil economy, our energy sector cannot withstand the impact of a highly communicable and dangerous virus such as this. The disruption of this industry is a direct threat to the energy independence and national security of the United States of America,” the congressmen wrote in a letter to Vice President Mike Pence, who is heading the White House coronavirus response. “Therefore, I request your support in making available valuable COVID-19 testing units for all vulnerable oil and gas workers.”
News broke Thursday about an OPEC decision to cut production by 10 million barrels of oil per day. The United States, currently the world’s leading oil producer, is producing 11.8 million barrels a day.
It’s not clear how large an impact the cut will have on prices. West Texas intermediate crude oil was at $22.76 per barrel at 5 p.m. Thursday on the New York Mercantile Exchange. That was down more than 9% in the day’s trading.
Brent crude was at $31.48, down 4%, in European trading.
Natural gas was at $1.73 on the NYMex, down nearly 3%.