US reaction to the
decision by OPEC Plus (the Organization of the Petroleum Exporting Countries
and Russia) to slash production by two million barrels per day as of November
has been hysterical, impulsive and politically motivated.
اضافة اعلان
President Joe Biden blamed Saudi Arabia and Russia
for tightening production when the US wanted the opposite in the hope of
lowering energy prices. The White House threatened to take action, while US
lawmakers from both sides of the aisle called for retribution against the
“cartel” by passing NOPEC, a proposed bill standing for No Oil Producing and
Exporting Cartels Act. Others called for taking direct action against Saudi
Arabia, such as denying it access to military hardware and ending military
cooperation.
But it is important to note that while Washington was
looking at the possible impact of the oil cut on American consumers, the
midterm elections and the war in Ukraine, OPEC Plus was doing what it usually
does, which is to regulate the flow of crude oil to world markets in a bid to
control prices. That is what OPEC Plus is all about.
The fact that Russia is part of the group has no
bearing on what Washington policy makers want or hope to achieve. The
organization of 13 members is no party to any war, conflict or dispute. It
simply seeks to protect the economic interests of oil-producing countries, as
it had done for decades, before the conflict in Ukraine.
Calls to make OPEC Plus legally accountable under
the NOPEC Act are reckless. Such an act, if it passes and is signed into law by
Biden, will end up hurting the global economy and in particular the US. Saudi
Arabia is not an enemy of the US, but a close friend. OPEC Plus, as mentioned
above, seeks to protect the interests of its members.
Regardless of how members of the organization feel
about the war in Ukraine, Saudi Arabia is on record as upholding international
law in this case. Adel Al-Jubeir, Saudi Arabia’s minister of state for foreign
affairs, has told Fox News this week that his country does not politicize oil
or oil decisions.
“Oil is not a weapon… we look at oil as a commodity
and we look at oil as important to the global economy in which we have a huge
stake,” he said.
Saudi Arabia and other long-term US allies in the
Gulf are committed to a peaceful resolution of conflicts. At the same time, they
are not ready to be dragged into an anti-Russia alliance over conflicts that
they had nothing to do with. This position has been made clear from the
beginning, and it is shared by other non-Arab countries, such as India, Brazil
and China.
The US is today one of the biggest oil producers, with an average production capacity of 11.8 million barrels per day; it is expected to raise that to 12.6 million barrels per day in 2023. Meanwhile, its crude oil imports of about 6.11 million barrels per day accounted for about 72 percent of its total gross petroleum imports in 2021, while it exported about 8.54 million barrels per day of petroleum to 176 countries and four US territories.
The US-Russia wrangle is complicated and
ideologically based.
The two lack trust in each other, and while Saudi
Arabia and other OPEC members support the territorial integrity of Ukraine,
they have no qualms about dealing with Russia to suit mutual interests. This is
the way the world is run today. Common interests are important and America’s
allies see no reason to take sides in a conflict that is turning into an East
versus West confrontation.
While US lawmakers blame OPEC Plus, they should
listen to French President Emmanuel Macron who rebuked both Norway and the US
for selling much needed liquefied gas at “four times” the price they charge
their own industries.
“In a spirit of
great friendship, we will say to our American and Norwegian friends: ‘You’re
super, you supply us with energy and gas, but one thing that can’t go on for
too long is us paying four times more than the price you sell to your
industry’. That is not exactly the meaning of friendship.” Macron said.
Macron’s statement underlines the US hypocrisy when
it comes to controlling energy prices. The US is today one of the biggest oil
producers, with an average production capacity of 11.8 million barrels per day;
it is expected to raise that to 12.6 million barrels per day in 2023.
Meanwhile, its crude oil imports of about 6.11 million barrels per day
accounted for about 72 percent of its total gross petroleum imports in 2021,
while it exported about 8.54 million barrels per day of petroleum to 176
countries and four US territories. In short, the US can also influence energy
markets and help its European allies by supplying both oil and liquefied gas at
acceptable prices. Why should OPEC Plus be the one that conforms to America’s
foreign policy priorities?
Finally, most oil transactions today are done
through the so-called petro-dollar. This is what keeps the US currency buoyant,
and if the US wants to wage a war against OPEC, it will have to be ready to
handle the consequences.
Osama Al Sharif is a journalist and political commentator based in Amman.
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