The Permian Basin Petroleum Association is calling for protection for domestic oil producers during the current oil war and coronavirus pandemic.
Association President Ben Shepperd said in an opinion piece published in the Midland Reporter-Telegram that the association is asking for the country to demand Russians and Saudis stop flooding the market with cheap, government-subsidized oil in the world oil market.
"We are working hard to explain the need for President Trump and Secretary of State Mike Pompeo to aggressively intervene to protect domestic producers and that they have tools in their toolbox —ranging from tariffs, import licenses and other trade restrictions to investigations, safeguard actions and sanctions — to protect domestic producers," Shepperd wrote.
Ben Shepperd
| Permian Basin Petroleum Association
Shepperd also wants to fill the Strategic Petroleum Reserve with domestically produced oil and for the removal of tariffs on steel that is used to produce domestic oil. Shepperd said in the opinion piece that a 25% tariff on steel is a cost that will come out of the war.
Shepperd wrote that the future of the industry, the country's economy and thousands of jobs are on the line, and the oil industry needs help now.
"We, as producers, the state and the country, must do all that we can to protect our ability to produce domestic oil," Shepperd wrote. "We understand that low gasoline prices are a bright spot in the current economy, but we also understand if we lose this war, then gasoline prices will go up and we all will be subject to another Arab/Russia oil embargo."
Shepperd wrote that the industry was not asking for a bailout.
"Our free-market principles make that a bridge too far," he wrote. "The stimulus bill proves that point. We appreciate the Small Business Administration loan program which was included. We hope people make appropriate use of the program’s availability."
He also said that this war is like any other previous oil war, except this one also involves the novel coronavirus, which has shut down the economy and destroyed any demand for oil in the state and nation.
"The future of the domestic oil and gas industry, thousands of jobs and the recovery of the United States economy are at stake here," he said. "We need help, and we need it now."