Oil Groups React to Biden Russia Oil Ban

Oil Groups React to Biden Russia Oil Ban
The API, EWTC, TIPRO, TXOGA and LOGA have their say.

Several U.S. oil and gas industry groups have reacted to U.S. President Joe Biden’s announcement that the U.S. is banning all imports of Russian oil and gas and energy.

The American Petroleum Institute’s (API) president and CEO, Mike Sommers, said the group supports the U.S. government and allies in their collective efforts against Russia’s “unprovoked invasion of Ukraine” and noted that the industry is prepared to comply with the import ban “in response to this aggression”.

“The industry has already taken significant and meaningful steps to unwind relationships, both with respect to assets in Russia, as well as imports of Russian crude oil and refined products,” Sommers said in an API statement.

“We share the goal of reducing reliance on foreign energy sources and urge policymakers to advance American energy leadership and expand domestic production to counter Russia’s influence in global energy markets,” Sommers added in the statement.

The Energy Workforce and Technology Council’s (EWTC) CEO, Leslie Beyer, said, “our industry supports the administration’s continued sanctioning of Russia, including the most recent ban on imports of Russian oil”.

“The industry had already made great progress in cutting off and reducing its participation in the energy industry in Russia. President Putin’s unprovoked, unilateral attack on Ukraine brings to the forefront the need to maximize U.S. domestic energy resources,” Beyer added.

“The U.S. energy sector has the expertise, technology, workforce and innovation to increase our domestic supplies of oil and natural gas in a cleaner more environmentally safe, more reliable and responsible way than our foreign counterparts. But to maximize our abilities, the Biden administration must take immediate action to embrace the security and reliability of domestic energy and encourage production and investment in the U.S. oil and natural gas industry,” Beyer continued.

Beyer also noted that it was “incomprehensible” why the Biden administration would ask “rogue regimes” in Venezuela and Iran to produce more energy when the U.S. has the resources available and was a net exporter only a few short years ago.

“Our energy production systems are a culmination of innovation, technology and manpower, with an unparalleled record of reliability and efficiency that produce hydrocarbons in the cleanest, most ethically produced manner,” Beyer said.

“Our domestic industry stands ready to meet global energy demand, however this is only possible through robust investment and consistent support of U.S. oil and natural gas companies,” Beyer added.

The Texas Independent Producers & Royalty Owners Association’s (TIPRO) president, Ed Longanecker, said Biden’s decision to ban Russian energy imports means domestic production is now more important than ever.

“Texas producers stand ready to meet growing demand for oil and natural gas. The Lone Star State has been and will continue to lead the nation in domestic energy production, and we embrace the role we play in establishing U.S. energy security,” Longanecker added.

“The Biden administration should encourage more domestic oil and natural gas production, including restarting leasing on federal lands and positioning U.S. liquefied natural gas (LNG) as the alternative to Russian gas for our global allies,” Longanecker continued.

The TIPRO president noted that the Federal Energy Regulatory Commission (FERC) must also change its policy guidance to remove impediments for developing U.S. energy infrastructure and added that the organization should expedite pending applications to expand operating capacity at three already approved LNG export facilities.

“Finally, the White House should convene an emergency council of U.S. operators to discuss and execute strategies to increase domestic production to support the efforts of our allies and trade partners to diversify their supply of oil and natural gas to prevent disruptions in global energy supplies,” Longanecker stated.

Commenting after news of the import ban broke, Todd Staples, the president of the Texas Oil & Gas Association (TXOGA), said, “this crisis should be a wakeup call that we need strategic American energy policy that treats oil and natural gas as an asset and not a liability”.

“The suffering of consumers at the pump underscores the importance of domestic energy production, and American consumers are feeling the repercussions of cancelled pipeline projects, delayed approvals for permits and the discouragement of additional expansion, poor decisions all exacerbated by the war,” Staples added.

“The administration calling on foreign countries to increase production a few months ago, rather than encouraging local jobs and local investment, had a chilling effect on expansion. This tragic event should help reset American priorities and recognize that American oil and natural are produced in more environmentally responsible ways than in any other country in the world,” Staples continued.

Louisiana Oil & Gas Association’s (LOGA) president, Mike Moncla, said the ban on Russian energy imports is an important step in applying pressure on Russia’s aggression in Ukraine.

“It’s clear that the Biden administration hasn’t had domestic energy’s best interest in mind thus far - let’s not forget, the price of oil had doubled and the price of a gallon of gas had tripled before Russia invaded Ukraine’s sovereign borders,” Moncla added.

“That being said … [Biden’s ban] is a positive step that Republicans and Democrats alike in Congress made possible. Fighting against Russian aggression shouldn’t be a partisan issue. This is something that we can all come together on,” Moncla continued.

To contact the author, email andreas.exarheas@rigzone.com

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