WASHINGTON – More than 600,000 barrels of Russian oil are bought in America every day, and some lawmakers are pushing to Biden administration to make that stop.
“We should stop buying over 600,000 barrels [of Russian oil] a day in America,” Sen. Joe Manchin (D-W.Va.) said earlier this week. “Can you believe that? No one knew that. No one paid attention to it. And that has to stop.”
According to the U.S. Energy Information Administration, the number actually is about 670,000 barrels of crude oil and petroleum products per day. The one-day high was 840,000 barrels in June. Imports were up 24 percent in compared to 2020.
Murkowski
On March 3, Sen. Shelley Moore Capito said she has signed on to legislation created Manchin and Sen. Lisa Murkowski (R-Alaska) to block the U.S. government and companies from importing any Russian crude oil or petroleum. Several senators have indicated they would support the measure.
“The United States should not be subsidizing Vladimir Putin’s war on Ukraine by purchasing and importing Russian oil, petroleum, natural gas and coal,” Capito said. “The Ban Russian Energy Imports Act is a commonsense measure, has bipartisan support here in Congress, and would hit the Kremlin where it hurts.
“If President Biden had not waged war on American energy production from day one of his presidency, he would have already imposed a similar ban on Russian energy. I urge the administration to support this legislation, and in the meantime, take steps to undo their misguided policies that are strangling American energy producers here at home, which will also allow us to better assist our allies as they move away from Russian energy sources.”
Such a move could Biden in a tough spot between environmentalists and those concerned with rising gasoline prices. Even though the overall volume of Russian oil and petroleum products does not constitute a huge share of the U.S. market, it still likely would be difficult to fill in that gap if such a ban is enacted.
The act would:
* Declare a national emergency specifically with respect to the threat to our national security, foreign policy, and economy that exists as a result of Russian aggression against Ukraine and directs the president to prohibit imports of crude oil, petroleum, petroleum products, LNG, and coal from Russia.
* The president has had the authority to take these actions since 1917; this legislation does not grant additional authority. This approach is modeled on the International Emergency Economic Powers Act.
* The ban would be in place during the national emergency and either the president or Congress would be able to terminate the emergency and the import ban.
* The bill exempts product that is already loaded or in transit at the time of enactment.
On March 1, Manchin opened a Senate Energy and Natural Resources Committee meeting called for quick action to ensure American energy independence and security.
“I want to take a moment to acknowledge Russia’s invasion of Ukraine and how Putin has used energy as a weapon to gain leverage over our European allies,” Manchin, the committee chairman, said. “One thing that hasn’t been talked about as much is that during this time of war, the United States is still importing more than half a million barrels per day of crude oil and other petroleum products from Russia, with imports up over 20 percent in 2021 over 2020.
“It makes no sense at all for us to rely on energy from a country that is actively engaging in acts of war against a freedom seeking democracy – Ukraine – when we are blessed with abundant energy resources right here in America. There is no reason why the United States should not be totally energy independent, or at the very least trading with our allies where we need to. That is the only way to ensure our energy security.
“It is hypocritical for us ask others to do what we can do – and we can do cleaner – when it comes to producing the energy we and our allies need. It’s time for the administration to take strong action to unleash American energy, up to and including banning Russian oil imports at a time when they are attacking our allies.”
Capito agreed and took it a step further.
“This administration won’t let us use our own domestic resources to the maximum that we should be able to and want to,” she said. “The American people are behind Ukrainians, and this would be a measure to demonstrate our great support and to really hit Russia where it hurts.
“We’re basically subsidizing a war against a free country by paying Russia all of that money for their energy. Putin uses that money to put bombs in the air and tanks on the ground. …
“The reality of what’s happening here is the president has the ability to do this right now. What this (bill) is is a statement from Congress that it needs to move forward. Hopefully, this will push the president into action on this particular issue. It may be he does this before we get this over the line and passed, but I think there will be good support for this.”
Capito said Biden has moved too slowly on the Ukrainian issue.
“I think the president has been slow,” she said. “I think he’s been under the impression and trying to achieve a diplomatic solution to this. While they were seeking this and leading from behind, Putin went ahead and did what he was going to do. … He (Biden) has a hesitancy and isn’t leading like the superpower we are. I wish he would lead more and be more aggressive at the front end.”
She said the quickest solution is to utilize domestic energy.
“The issue of trying to bring down the cost of oil is a supply, a domestic supply,” Capitol said. “We have leases that were in action on federal lands that this president stopped. We could turn those on almost immediately and have a bigger and broader supply.
“We can’t build a pipeline in a day, but if he hadn’t canceled the Keystone pipeline, we would be having at least 700,000 barrels of oil coming through that pipeline as we speak. I think with the short-sightedness of not using our own resources, the president cut off a lot of those avenues.”
Capito used the coal and natural gas industries as examples.
“(The coal industry) can’t get the rail cars to ship coal out to the Virginia coast to be send to the NATO countries,” she said. “Those countries are calling for and wanting coal. The price is skyrocketing for coal. But if we don’t have the supply and the ability to rail it out, it’s a missed opportunity for us. It’s a missed opportunity in two ways. It would be good for our industries and workers, but it also is good for the continent of Europe and NATO countries.
“Same goes with natural gas. If we can send liquefied natural gas to Maryland to be shipped out, that would be a huge help to both sides. I see us as an energy producer being in a good spot economically to be able to help. You hate to have this reason, but West Virginia can play a part in being a good support to the NATO countries.”
The president of the West Virginia Coal Association agreed.
“We applaud Senator Manchin’s call for more domestic energy production as the Ukraine crisis intensifies,” Chris Hamilton told The West Virginia Record before Capito signed on the bill. “Paying high dollar for shipments of Russian oil into the U.S. makes no sense anytime not alone today as Russia initiates their invasion of Ukraine.
“We also have an opportunity to ship greater volumes of coal to many of our NATO allies who presently have Russian coal supplies disrupted. We stand ready to step up coal production as well.”
The president of the West Virginia Chamber of Commerce says Manchin and Capito are doing the right thing for the country and for the state.
“I believe Senators Capito and Manchin are correct in saying it’s the role of the United States to stand with free people and democracies of the world against oppression,” Steve Roberts told The Record. “Approximately 8 percent of the world’s oil supply is exported by Russia, but the United States has the assets in the ground to be able to make up for those numbers coming from Russia. The United States is a net exporter of energy.
“West Virginia has, in the ground, a lot of oil and natural gas, and we have the capacity to generate large amounts of electricity with coal, natural gas, nuclear and renewable resources.”
Roberts said the administration needs to lift the heavy regulatory burdens placed on energy industries.
“We are excellent at energy exploration,” he said. “The only impediment is our government. We’re told you can’t build pipelines to ship it. But pipelines are the safest, fastest and cheapest way to move natural gas. That represents an enormous problem.”
Roberts said he isn’t against green energy and renewable energy resources.
“Eventually, we as a society have to figure some things out,” he said. “But right now, we’re not there with green energy. For example, we can quit using coal in the United States right now, but China and India will make up for it. They’re buying all of the coal they can get to generate cheap electricity because they know that’s how you build an economy.
“Globally, we’re going to have to decide if we’re going to led Greta Thunburg or real experts determine our energy policy. And those experts say you can’t do it right now without using one-third fossil fuels, one-third nuclear and one-third renewable energy.
“And, all of this should remind us to build the capacity for easier use of liquefied natural gas. We’ve got it here in West Virginia, and we’d be happy to supply it. Our country can do those things, and we can do those quickly. But we can’t do it if everyone is talking about green energy all of the time. It simply can’t supply all of our energy needs right now.”