Secretary Brouillette joins Varney & Co on Fox Business to discuss the impact of the OPEC+ agreement.
Statements
Read what congress members and energy stakeholders are saying below.
- Sens. Cramer and Sullivan -“Thank you to President Trump and Secretary Brouillette for your strong and tireless advocacy on behalf of American oil producers, which sealed this unprecedented deal. Without it, the United States could have lost its energy dominance along with the security and thousands of good-paying jobs it brings,” said Senator Cramer. “We know this fight isn’t over. We have to make sure these countries hold up their end of the deal, and we will be watching every step of the way.”“The outlines of this unanimous agreement appear to be quite significant. Senator Cramer and I, along with several of our Senate colleagues, have been working hard for the past three weeks for this successful outcome,” said Senator Sullivan. “I want to thank Secretary of Energy Brouillette, and especially President Trump, who was very personally engaged with world leaders over the last several days on this issue, and played the critical role in having it come together. As I’ve stated before, actions will speak louder than words on the implementation of this agreement. We will be watching this closely. It is my hope that this deal will bring much needed stability to energy markets in Alaska and throughout our country and will halt additional job losses in our oil and gas sector.”Full Statement: https://www.cramer.senate.gov/sens-cramer-sullivan-statements-deal-cut-oil-productionSen. Hoeven -“This is a welcome step toward providing stability in the global energy markets and helping our domestic oil and gas producers to weather the economic challenges from COVID-19,” said Hoeven. “We’ve worked closely with the administration, including the President and Secretary Brouillette, to secure this agreement and have been pressing the Saudi leadership to end the global oil price war. We have more work ahead of us to maintain our energy security by helping U.S. producers during these historic times, which is why we will continue with our efforts to open the SPR for purchases of U.S. oil.”Full Statement:https://www.hoeven.senate.gov/news/news-releases/hoeven-statement-on-agreement-to-cut-oil-productionRep. Steve Scalise –"The House Energy Action Team, led by Markwayne Mullin and Jeff Duncan, part of the Whip Team, we had been meeting for weeks and talking to the State Department about addressing Saudi's dumping and cutting the price of oil. And so, you know, to see the President jump in, recognize this was a problem and call on Saudi and Russia to go back to the table and address what they were doing." - Minority House Whip Steve ScaliseFull Statement: https://scalise.house.gov/media/press-releases/scalise-applauds-opec-agreement-ending-global-crude-oil-market-manipulationRep. Garret Graves -“Unchecked actions by Russia and OPEC nations pose significant threats to our environment and economy. And amidst a global pandemic, it was absolutely wrong of Russia, the Saudis and others to take advantage of the first major decrease in energy demand in decades to advance their geopolitical agenda through economic warfare and flooding the market supply. I applaud the Department of Energy, Secretary Dan Brouillette, the President, and all involved in protecting our best interests and working to protect Louisiana jobs and our economy, to reduce emissions, and to stabilize global energy markets.”What Congress is saying on Social Media:
Chevron:
“We appreciate the Administration’s leadership in addressing disruption of global markets and its focus on restarting the economy as soon as it’s safe to do so.” (Twitter, 4/12/20)
California Independent Petroleum Association CEO Rock Zierman:
“As one of the primary subjects of dumping of cheap foreign crude, California producers are grateful for the President’s leadership in resolving this artificial price war. Eliminating dumping will help preserve the viability of domestic independent producers and the jobs of those they employ. Protecting American jobs and supply chains is paramount in these critical times.”
Consumer Energy Alliance:
“The decision by Saudi Arabia, Russia and others to cut oil production by nearly 10 million barrels a day – which could curb global supply by a fifth starting next month – is a great first step toward alleviating the unnecessary and manufactured market pressure on the energy sector. The Saudi-Russian price war, coming as it did as the world began confronting the COVID-19 pandemic and related economic fallout, upended global energy markets and we are only beginning to see the full extent of the damage now.”
“While we are always in favor of affordable, reliable energy prices for families, farmers and small businesses, no one wins when prices are so low that American energy producers have to shed thousands of jobs – especially when we are already staring down the barrel of an economic downturn caused COVID-19’s enormous global impact. This production cut, as well as potential curbs by non-OPEC members, will help provide eventual clarity to unsettled markets and bring things back into a manageable balance.”
“Already, Americans are looking toward our economic and social recovery, and one of the biggest lessons the pandemic has taught us is the need for American self-reliance and independence across the critical sectors of our economy – from energy production to manufacturing to supply chains of essential medical supplies. We were already enjoying the fruits of energy independence, to the point that it threatened other nations when COVID hit.”
“As we rebuild our economy, we must keep this principle of self-reliance at the forefront to ensure we are never again at the mercy of other nations’ actions or negligence. CEA is optimistic that the deal will help take the thumbs off the scale in the world oil market and give American energy producers some of the relief they need. Energy has been essential to every American economic recovery in history, and the industry must be healthy to reassume its role in creating jobs, driving infrastructure building and keeping American families and small businesses in a position to thrive.”
“CEA has long supported efforts to improve energy efficiency and promote emissions reductions through greater encouragement of American innovation. The U.S. leads the world in the development of technology that safeguards our environment while providing the affordable, reliable energy that our families, farmers and small businesses need, and this production cut will help us propel that important work forward.”
American Fuel & Petrochemical Manufacturers:
AFPM President and CEO Chet Thompson issued the following statement on the agreement finalized today to end the OPEC+ oil price war:
“We're pleased that the President successfully negotiated a diplomatic end to the global oil price war in a manner that helps U.S. producers and avoids imposing added costs on U.S. refiners. America’s refining sector is the most competitive and resilient in the world, and as recovery comes from this historic pandemic, we will remain well positioned because of free market policies to deliver the fuels and petrochemicals that serve as the backbone of the global economy. We thank the President for his leadership and policies that support U.S. energy and manufacturing.”
American Petroleum Institute:
"We welcome today’s announcement of an agreement by other producing nations to follow the lead of the global marketplace – and U.S. producers – to reduce supply to align with lower energy demand as result of the pandemic. This is a significant agreement that will foster increased stability in energy markets to the benefit of both American energy consumers and producers. We commend the president’s leadership and his administration’s diplomatic engagement to urge nations to bring global oil supply in line with the lower energy demand as a result of the pandemic.
"In the U.S., market conditions have led U.S. producers to reduce U.S. oil production to meet historic drops in demand. While the U.S. today leads the world in daily oil production, oil is produced, refined, used and traded across the globe, and most of the world’s oil is produced by foreign government owned entities – some of whom announced oil production increases last month just as global energy use was decreasing due to the pandemic.
"Prior to COVID-19, the world demanded 100 million barrels of oil per day for transportation, industrial operations, manufacturing and byproducts used in every sector of the global economy – from paints and asphalts to makeup and iPhones – and projections show long-term demand for oil and natural gas around the world remain strong. Significant challenges remain in the weeks and months ahead for our sector and nearly every other; however, U.S. oil and natural gas – and the American workers who produce, transport, service, refine and ship it – will be critical to enabling our economic recovery."
Bud Brigham, Executive Chairman, Minerals/Atlas Sand/Brigham Exploration:
“We are extremely grateful for President Trump, as well as members of Congress from our energy producing states, for their leadership stepping up to protect our oil and gas industry, our exceptional employees, as well as our national security. These attacks are shining a bright light on our nations glaring vulnerabilities. Regulatory relief and even incentives to build out our infrastructure, including gathering, transportation, refining and port investments, as well as insuring producers have access to capital, are critical if we are to make our nation secure, and to preserve our energy dominance.”
Dennis Johnson, President and CEO, Summit Petroleum LLC (Midland, TX):
“Very good news!
This is certainly a step in the right direction, and thanks is due President Trump for getting involved!
Although this level of oil production cut won’t fix all the problems of the current demand destruction from the coronavirus, it does help stem the destruction to the energy industry. The OPEC Plus Agreement will hopefully keep the energy producers and refineries in business and viable as we all strive to put America back to work.
Thank you DOE officials and President Trump!”
Domestic Energy Producers Alliance:
“We applaud today’s decision by OPEC to cut production. It’s a good and necessary first step to restore some sanity to the global markets and we hope signals the recognition that dumping excess oil into the U.S. market is a losing proposition for all concerned. However, we also all know that demand remains out of sync with supply. The world has lost almost 30 million barrels a day of demand. Here, in the United States, we are rapidly adjusting production to these new realities. We hope that the oil producing nations take additional steps soon to better align demand with supply. We also want to thank President Trump for his steadfast leadership protecting our millions of oil and gas workers, our industry and our energy independence. We are confident that he and the Administration will take the necessary steps to preserve one of America’s most important industries.”
Energy Equipment and Infrastructure Alliance:
“The President’s intense focus and leadership in the complicated negotiations was the key factor resulting in the global deal. It came at a critical moment and will help correct the oversupply that has threatened the foundations of the American energy revolution. The unprecedented reduction of energy consumption resulting from COVID‐19 has reverberated down through the extensive American energy supply chain, threatening hundreds of thousands of jobs and endangering countless small businesses.”
As the oversupply situation worsened, EEIA last week led a multi‐organization appeal to the President to use his best diplomatic efforts and employ all means at his disposal to bring the largest producing countries to the table and negotiate a coordinated supply reduction. “The President’s leadership clearly provided the difference in making this happen – and he did so in the midst of historic challenges from the COVID‐19 global pandemic. We thank the President for securing a result that will be essential to preserving a robust American energy industry, and its extensive supply chain, that will be a critical factor as the US and global economies recover and resume their robust growth.”
Vicki Hollub, President and CEO, Occidental
“The agreement announced today is an important step forward in stabilizing the global economy and saving millions of jobs around the world,” said Vicki Hollub, President and CEO, Occidental. “I’d like to thank President Trump for his decisive leadership in supporting our industry and also securing our country’s energy independence.”
Ross Perot, Jr., Chairman, The Perot Companies and Hillwood“One more time, President Trump has shown courage and leadership brokering a very difficult agreement between Saudi Arabia, Russia and the rest of OPEC. His efforts will stabilize the global energy Industry and protect over one million American jobs. This is particularly important during this global crisis due to Covid 19.”
Harold Hamm, Executive Chairman of Continental Resources and Chairman of the Domestic Energy Producers Alliance
“We applaud today’s decision by OPEC to cut production. It’s a good and necessary first step to restore some sanity to the global markets and we hope signals the recognition that dumping excess oil into the U.S. market is a losing proposition for all concerned. However, we also all know that demand remains out of sync with supply. The world has lost almost 30 million barrels a day of demand. Here, in the United States, we are rapidly adjusting production to these new realities. We hope that the oil producing nations take additional steps soon to better align demand with supply. We also want to thank President Trump for his steadfast leadership protecting our millions of oil and gas workers, our industry and our energy independence. We are confident that he and the Administration will take the necessary steps to preserve one of America’s most important industries.”
Kelcy Warren, Chairman and CEO, Energy Transfer Partners
“It is a testament to the President’s leadership that the key producing nations around the world agreed to put their individual interests aside,” said Kelcy Warren, CEO, Energy Transfer. “The positive impact this will have on the economy goes beyond our respective borders. Millions of people are experiencing severe hardships during this challenging time, which makes it more important than ever that we continue to work collectively to address global energy demands.”
Brad E. Cox, Chairman, Cox Oil
“President Trump’s historic collaboration with OPEC+ delivers hope to all and would have never happened without U.S. energy dominance becoming a reality under his leadership.”
American Exploration & Production Council, Anne Bradbury, CEO
“US independent producers want to thank President Trump, the Administration, and Members of Congress who support American energy independence for maintaining pressure on the international players that were using this global health crisis to manipulate the oil markets and hurt US Shale. We are optimistic about the OPEC and Russian deal to help curb global oversupply and hope they will continue to evaluate production levels in coming months, given the unprecedented worldwide demand shock. US leaders should maintain focus on market-based solutions to help alleviate the supply/demand imbalance that will take time to settle.”
Alex Cranberg, CEO and Chairman, Aspect Management Corporation
“Millions of AMERICAN jobs depend on defeating the combined assault on our industry from virus, Russia and Saudi. President Trump’s leadership has been essential to lead our side in this battle.”
L.E. Simmons, Chairman, SCF Partners
“Oil and gas energy has been a major driver of positive trade balances, employment growth, capital investment and new technology for the past decade. Because of the success in the U.S., the balance became tenuous. Then, with the coronavirus, demand plummeted to historic levels. It took the leadership of the President to arrive at a compromise that will save the domestic industry and maybe of even more importance, longer term, is the U.S. energy industry will remain viable and continue to provide the new oil and gas in 2021 - 2024 that will be essential to avoid another price spike which could lead to a recession when the economy can least afford it.”
Bubba Saulsbury, Executive VP Corporate Strategy, Saulsbury Industries (Odessa, TX)
“It's reassuring to see President Trump and the administration taking an aggressive approach to ensure that the US remains a powerhouse in the energy sector. The recent actions taken by OPEC are just the first steps that President Trump is taking that demonstrate his understanding of how vital it is that we retain our energy independence through safeguarding our position as the world's leading provider of oil and gas production and as a net exporter.”
Wil VanLoh, CEO, Quantum Energy Partners (Houston, TX)
“President Trump delivered a major victory today for the U.S. oil and gas industry. The historic agreement to withhold 9.7 mmbo/d from global markets will give the domestic industry some breathing room as it will significantly slow the filling of domestic and global storage and give U.S. producers a much longer runway to deal with the demand destruction from COVID-19. The President’s leadership was critical to getting Saudi Arabia and Russia to the negotiating table, and ultimately getting Mexico, the last remaining hold-out, to participate.”
Permian Basin Petroleum Association
“The members of the Permian Basin Petroleum Association are grateful to President Trump and the Administration for their tireless efforts to persuade the leaders of Russia and Saudi Arabia to cease their destructive market behavior. The President’s bold actions will save tens of thousands of oil and gas industry jobs and help America lead the world out of this horrible COVID-19 crisis.”
North Dakota Petroleum Council President, Ron Ness:
“North Dakota’s oil and natural gas industry appreciates the effort President Trump has taken to support American energy security and the millions of jobs our industry represents. Thank you.”
National Ocean Industries Association
“President Trump’s diplomatic outreach and attention to diffusing the oil price war between Saudi Arabia and Russia is welcome news for American energy workers and energy consumers around the world. The American energy industry, including the offshore, provides safe and environmentally-responsible oil and natural gas that makes our modern lives possible. But we are only a few short years removed from one historic downturn. Without continued and sustained efforts to address the current crisis, American energy production, including the countless companies along the Gulf Coast that keep American energy flowing, would face existential pressures."
Louisiana Mid-Continent Oil & Gas Association
“We are grateful for the President's strong diplomatic leadership on behalf of American energy producers in securing a 10 million barrel per day reduction from OPEC plus nations to help us weather this storm of uncertainty. We especially appreciate the President's recognition of the severe impact COVID-19 has had on the demand for energy. We ask him, the Department of Energy and Department of Interior to continue to work together to find ways to ensure our industry can sustain the historic drop in demand, save nearly 50,000 jobs associated with OCS activity and continue his legacy of American energy dominance for years to come.”
Independent Petroleum Association of America (IPAA) President and CEO Barry Russell
"The agreement reached on Sunday to collectively reduce 9.7 million barrels of oil a day was an important and essential step to bring future stability into oil markets. For more than a month, IPAA has maintained that negotiations needed to occur to mitigate the commodity price war that unjustly impacted global markets, that was coupled with oversupply as a result of plummeting demand from COVID-19.
Media Clips
Watch below to see what the media is saying about OPEC+
US Confident of Fundamental Shift in Oil Politics – Financial Times
Trump can act ‘even more aggressively’ in the oil market: US energy secretary – CNBC International
Oil supply cuts explained: an interview with the US energy secretary – Wood Mackenzie
Dan Brouillette on Wharton Business Daily – Sirius XM business
U.S. Energy Chief Says It Is Important Not to Overproduce Oil Right Now – Bloomberg TV
Oil nations reach deal for largest-ever production cut – E&E News
Oil rises after OPEC and allies agree to historic production cut – CNBC
Trump plays key role in brokering historic oil deal- Fox Business
U.S., Saudi Arabia, Russia Lead Pact for Record Cuts in Oil Output – Wall Street Journal
Oil Nations, Prodded by Trump, Reach Deal to Slash Production – New York Times
OPEC, oil nations agree to nearly 10M barrel cut amid virus – AP
Oil Price War Ends With Historic OPEC+ Deal to Slash Output – Bloomberg
OPEC, Russia approve biggest-ever oil cut to support prices amid coronavirus pandemic – Reuters
U.S. not concerned by any new OPEC output cut, Brouillette says
Saudi Arabia and Russia finalize 'big' oil deal to cut production after prodding from Trump – Washington Examiner
Update on the latest in business: - AP, Federal News Network