The Panhandle Import Reduction Initiative (PIRI) Calls for New White House Policy: Unfair Trade Endangers U.S. Oil Industry Too

May 18, 2017 06:00 AM Mountain Daylight Time
AMARILLO, Texas--(BUSINESS WIRE)--In a letter directed to the President of the United States and received by the White House, the founders of (PIRI), the Panhandle Import Reduction Initiative representing thousands of independent small producers of oil in the Southwest United States wrote, “We call upon President Donald J. Trump for a second Presidential Memorandum to order the Secretary of Commerce, to establish the crude oil industry as a “Core” industry to be added to steel, aluminum, vehicles, aircraft, shipbuilding and semiconductors. Crude oil should be recognized as one of the critical elements of US manufacturing and defense industrial bases, which we must defend against unfair trade practices and other abuses.”

“Mr. President, American superiority in energy security means self-sufficiency: Throwing off these trade shackles then is the fight for fair trade in Steel and Aluminum, we must prevail in the fight for US oil producers too.”

Tweet this
The PIRI founders further stated in the letter “Following the Presidential Memorandum on the case for steel against Chinese export practices that you signed, PIRI further calls for an immediate Investigation by the Department of Commerce of Saudi Arabia and OPEC abuse between August 2014 and March 2016 of the American oil industry by expanding production to lower world oil prices to destabilize and cause hardships to American producers mainly of light tight oil (shale oil). This was an announced effort to undermine and shut-down producers with higher costs of production. According to one estimate some 150 US companies filed bankruptcy and $150 billion in capital outlay postponed or cancelled. More than 300,000 US industry-related jobs were lost.”

This abuse under the Trade Expansion Act of 1962 should be investigated, similar to the investigation of the domestic steel industry,

“to consider the domestic production of crude oil needed for projected national defense requirements, the existing and anticipated availabilities to meet such requirements; the capacity of domestic industry to meet such a requirement, the existing and anticipated availabilities of human resources, products, raw materials, and other services essential to national defense, the requirements of growth of such industries and such supplies and services, including the investment, exploration and development necessary to assure growth, and the importation of goods in terms of their quantities, availabilities, character, and use as those affect such industries and the capacity of the United States to meet national security requirements.”

PIRI asks President Donald J. Trump on behalf of its thousands of members that this investigation include a characterization of the new crude oil industry based on new technology that is producing oil at historic high levels and has resisted a shutdown and abuse with this technology. Further, PIRI requests a review of national defense with domestic oil production capable of self-sufficiency in contrast to dependency on foreign oil imports over water (oceans) with consequent cost of deployment of naval protection and other military protection of the “flow of world oil” should be included. The cost of a strategic petroleum reserve of nearly one billion barrels of oil is no longer justified as a hedge against foreign oil import disruption.

For National security, the unfair trade act of overcapacity against US oil producers must stop, Mr. President. Stopping overcapacity is paramount, as in the case of Chinese steel, of Saudi Arabian and to lesser extent of Gulf Nations production and export of crude oil and its potential to be used at any time as a tool to compete with and damage American producers in a future strategic “price war” for market share which occurred from 2014-2016. This should include the purpose of “spare capacity” in Saudi Arabia as an offset to supply disruption threats to the United States which now has domestic production that would leave it unaffected. There is a potential that “spare capacity” can again be used and would constitute an “abuse” as “overcapacity” to lower prices and threaten the new American crude oil industry.

The letter concludes: "Mr. President, American superiority in energy security means self-sufficiency: Throwing off these trade shackles then is the fight for fair trade in Steel and Aluminum, we must prevail in the fight for US oil producers too."
The Panhandle Import Reduction Initiative (PIRI)
Dr. Daniel Fine, 505-771-1865
Tom Cambridge, 806-358-7744
John Yates, Jr., 575-703-1746
Tom Dugan, 505-325-1821
T.Greg Merrion, 505-320-5966

New service from OilVoice
Trip Shepherd is for companies who need to track their staff in areas of risk.
It's free to use, so we invite you to try it.

Visit source site

Unfair TradeTradeOil pricesBusinessoil productionPresident of the USADonald TrumpUnited StatesShaleTexasTexas Oil and GasBakken crudePermian BasinPermianpoliticsupstreammidstreamdownstreamOPECSaudi ArabiaSaudi AramcoPolicynewsoil & moneyProductionExploration and Production

More items from wfine94268

San Juan Basin on verge of collapse

With natural gas prices plummeting alongside oil prices, industry leaders say producers in the San Juan Basin in northwestern New Mexico could soon be forced to shut thousands of wells. That translates into less than $1 per Mcf for producers on New Mexico's side of the basin, given the additional ...

Will Fine

Posted 3 days agoLink > SanJuanBasinNewMexicoAlbuquerque +1

Oil and gas industry faces huge loss

BY KEVIN ROBINSON-AVILA AND DAN BOYD / ALBUQUERQUE JOURNAL STAFF WRITERS Published: Thursday, March 19th, 2020 at 5:04pm Updated: Thursday, March 19th, 2020 at 9:55pm " Copyright © 2020 Albuquerque Journal With oil prices plunging to their lowest level in 22 years, state legislators are proje ...

Will Fine

Posted 7 days agoOpinion > Farmington New MexicoDelaware BasinWest Texas Delaware Basin USA +63

Special lecture on the Oil Price War with Dr. Daniel Fine

You are invited to a special lecture with premiere energy and geopolitical analyst Dr. Daniel Fine ! I will be lecturing on 1) Energy Election 2020: Second Term Trump or Alternative 2) U.S Energy Domination and Trump: Export or Else 3) Gas and Oil under the Alternative: Climate Control and Taxation ...

Will Fine

Farmington   NM   US 30 Mar 2020

Posted 13 days agoEvent > oil priceoil price collapseOil prices +57

Oil price plunge wallops NM

With Russia and Saudi Arabia now locked in battle over which country can sustain their economies the longest as prices plummet, the Permian Basin in West Texas and southeast New Mexico is caught directly in the crossfire. In fact, in good part, the price war appears directly aimed at slowing prod ...

Will Fine

Posted 16 days agoLink > Governor of New MexicoFarmington New MexicoBusiness news +48

Oil price plunge wallops New Mexico

BY KEVIN ROBINSON-AVILA / Albuquerque JOURNAL STAFF WRITER Published: Monday, March 9th, 2020 at 10:02pm Copyright © 2020 Albuquerque Journal New Mexico's oil boom could soon turn to bust after world prices for crude crashed on Monday. The price for U.S. benchmark West Texas Intermediate b ...

Will Fine

Posted 16 days agoOpinion > RussiaRussian marketOPEC +85
All posts from wfine94268