Protect Alaska Jobs: Ban Russian and Saudi Oil Imports

March 30, 2020

The American energy industry is the lifeblood of all industries.  When America finally defeats the Coronavirus, and the nation returns to work, every industry from airlines to cruise ships, plus the tens of millions of Americans commuting to and from work, will need energy.  

America’s energy is dealing with two challenges simultaneously: 

1. The freezing of our nation’s largest industries (manufacturing, travel, tourism) to prevent the spread of coronavirus has cut off demand for energy. 

2. The price war between Russia and Saudi Arabia has further weakened the price of oil with the goal of bankrupting American oil producers. 

Power The Future is calling on our nation’s leaders to implement a ban on Russian and Saudi oil into the American marketplace.  This swift and targeted action will protect the American oil and gas industry, ultimately protecting the long-term health of our economy and national security.  By banning the import of Russian and Saudi oil we can both strengthen our domestic oil production and send a strong signal to the international community that price wars aiming to hurt American industry will not be tolerated.  

Facts:

1. The Congressional rescue package has a multi-trillion dollar price tag.  A boycott of all Russian and Saudi oil does not cost the treasury any money.

2. Oil imports are approximately a third of America’s daily domestic oil consumption. Russian and Saudi imports are 6% each of that amount (12% total) – a very small percentage of our oil needs.

3. The transportation and industrial sectors utilize more than 90% of our oil consumption. Those industries are virtually halted in an effort to stop the spread of the coronavirus, meaning current demands do not require Russian and Saudi imports.

4. The oil and gas industry employs more than 10 million people nationally and is responsible for 77,000 direct and indirect jobs in Alaska.

5. The oil and gas industry contributes $1.3 trillion to the national economy, and over $4 billion each year is spent in Alaska between employees and local suppliers.  Alaska’s Permanent Fund has received $2.7 billion in oil and gas royalty payments since 2014.

5. If the American energy industry goes bankrupt, we will lose our current energy dominance and possibly return to dependence on Russian and Saudi oil. This long-term consequence must be avoided at all costs.

This action by our nation’s leaders – stopping the import of all Russian and Saudi oil – is a crucial, short-term step that will protect jobs, the lifeblood of our economy, and our national security at no cost to the taxpayers.  Once the Coronavirus crisis has passed, and our tourism, travel, airlines and manufacturing sectors are back to work with tens of millions of people returning to their daily routine, they will need a robust, reliable, domestic energy industry to power the nation.