Congressman Pete Olson

Representing the 22nd District of Texas

Olson Joins Colleagues to Demand Investigation of Saudi Oil Dumping

April 24, 2020
Press Release

Washington, DC — Congressman Pete Olson (TX-22) today joined nine of his House colleagues in sending a letter to U.S. Commerce Secretary Wilbur Ross. The letter requests an investigation into reports of a flotilla of ships headed to the United States loaded with Saudi crude oil to flood an already-oversupplied domestic market.

“Actions by Saudi Arabia to further depress the price of oil in the United States are a market-based act of aggression,” Olson stated. “American workers and our energy sector are already hurting due to market manipulation in the war between Saudi Arabia and Russia and COVID-19 economic restrictions. Hostile actors overseas must be pressured to back down. While America’s economy is suffering badly due to COVID restrictions, the market volatility is adding to the economic pain for energy producing regions like Houston. I was proud to join my colleagues to urge our Commerce Department to investigate reports of Saudi oil dumping in the U.S. and, if proven true, take action to stop it.”

Text of the letter is below and at this link:

April 24, 2020
The Honorable Wilbur Ross
Secretary of Commerce
U.S. Department of Commerce
1401 Constitution Ave, N.W.
Washington, D.C. 20230

 

Dear Secretary Ross,

We strongly urge your department to begin an immediate investigation into the potential illegal delivery of crude oil by the Kingdom of Saudi Arabia into the United States oil market. Despite the recently announced historic OPEC+ production deal, Saudi Arabia continues their assault on American energy industry, and it is imperative that our response to these actions is swift and decisive.

Many early assumptions were that the United States was simply caught in the crossfire of an oil price war between the Kingdom of Saudi Arabia and Russia. However, it is now abundantly clear that our domestic industry was the deliberate target of sustained and orchestrated attacks to destroy the American energy renaissance and weaken our national security.

During a time of unprecedented diminished demand for oil caused by an even more unprecedented global economic upheaval, our domestic producers are struggling to find a market or adequate storage for their product. Meanwhile, there are reports of a “flotilla” of Very Large Crude Carriers (VLCC) heading towards the United States loaded with Saudi crude — estimated at roughly seven times the amount of a typical month’s worth of crude oil.

The impacts of these actions are causing serious consequences for our oil and gas industry and the American communities that support it. At the time of our writing, with millions of barrels steaming towards US markets, the crude market trading at historic volatility, and the world sheltered in place; our communities face staggering employment rates estimated as high as 42% in some areas.

American innovation and gumption have made our domestic producers the envy of the world, and more than capable to compete toe-to-toe with any others. However, they demand a level playing field. For these reasons, we implore your department to move swiftly to investigate the Kingdom of Saudi Arabia and hold it accountable for any potential actions to intentionally weaken America’s energy independence and to protect jobs of hard-working Americans. Furthermore, we encourage you to utilize all resources at your disposal for the most appropriate and expeditious response.

 

Sincerely,

K. Michael Conaway
Member of Congress

Chip Roy
Member of Congress

Scott Tipton
Member of Congress

Kelly Armstrong
Member of Congress

Tom Cole
Member of Congress

Louie Gohmert
Member of Congress

Brian Babin, D.D.S.
Member of Congress

Will Hurd
Member of Congress

Pete Olson
Member of Congress

Kendra Horn
Member of Congress

Issues: