April 6, 2020

MSCI, EEIA Urge Action To Halt Saudi And Russian Dumping Of Crude Oil On Global

With its partners at the Energy Equipment and Infrastructure Alliance (EEIA), MSCI has sent a letter to President Donald Trump asking that his administration take action to keep Saudi Arabia and Russia from dumping crude oil onto global markets.

Specifically, EEIA and MSCI called for “concerted” legal and diplomatic efforts to “end the aggressive and predatory Russian and Saudi Arabian dumping of crude oil on global markets, at prices well below the cost of production, and far in excess of what the world needs even if all economies were operating normally.” Saudi Arabia and Russia have announced they will flood the global market with crude oil.

These policies could drive American shale energy producers and their supply chains out of business and their workers out of jobs. In fact, the letter warned that “once the rest of our economy is humming again, the energy sector … is threatened to be left behind and permanently damaged” if the White House does not act.

EEIA and MSCI pointed out that studies show that for every worker directly engaged in energy production such as petroleum engineers and rig workers, three more supply chain workers are engaged in jobs such as manufacturing, maintaining, and operating construction equipment; providing construction labor, producing materials, and supplying technical and engineering services. In fact, 60 different U.S. Commerce Department-defined industries make up the energy supply chain.

Read the full letter here.