Talks with Saudi Arabia in hopes to raise the oil price

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Oil Alliance Discussions Underscore American Energy Progress
Nicole Jacobs // Team Lead, Hughesville PA
March 26, 2020

As oil prices remain below $25 per barrel, U.S. government officials are in discussions about establishing a new oil alliance with Saudi Arabia to stabilize international markets. This potential new accord is one of several ideas the administration is considering to counteract prices that were driven to multi-decade lows in the wake of COVID-19 and an international price war between Saudi Arabia and Russia. Saudi Arabia this month announced its intention to ramp up production by 3 million barrels per day in an effort to gain market share after Russia refused to cooperate on deeper production cuts. An agreement with Saudi Arabia to implement production cuts could bring much needed stability to the market. According to Energy Secretary Dan Brouillette: “As part of the public policy process, if you will, our interagency partners often get together and talk about a number of different items, but we’ve made no decision on this.” Regardless of whether a deal between the United States and Saudi Arabia comes to fruition, the very idea that America holds a position to influence global oil markets stands as a testament to the immense progress the U.S. energy industry has made over the past decade. Since the shale revolution began, domestic producers have boosted U.S. oil output to nearly 13 million barrels per day, making it the world’s largest producer, and securing the country as a key player in global oil markets.

Read more: https://www.energyindepth.org/oil-allia ... -progress/