Saudi Arabia Shows Need to End Addiction to Middle Eastern Oil
by Jim Talent (The Hill/Americans for Energy Security and Innovation) Following the mysterious death of columnist Jamal Khashoggi, Washington was hit with a stark reminder that America remains glaringly vulnerable to economic threats from the oil oligarchs of the world. Saudi Arabia quickly issued a warning that any sanctions will be met with “greater action” and that it plays a “vital role” in the global economy.
The implication was clear. Any attempt to hold the Saudi government accountable could lead to a crippling spike in oil prices, care of the largest oil producer in the Middle East. Meanwhile, American fortunes remain subject to the global politics of oil. Without Saudi cooperation, it would be all but impossible for President Trump to press ahead on efforts to neutralize hostile forces in Iran. Why? Only Saudi Arabia would be able to replace Iranian crude exports locked in by American sanctions.
Petroleum boosters like to claim that fracking broke our addiction to foreign oil, but as the Energy Department pointed out this month, the changing trade balance is still dominated by crude oil imports. Net crude imports account for a fifth of total consumption in the United States. The need for homegrown alternatives remains as strong as ever, particularly as fuel prices climb back to nearly $3 per gallon.
Fortunately, policymakers have at least one time tested tool to shield American consumers from international intrigue, the renewable fuel standard, a bipartisan policy I championed in the Senate back in 2005. This federal program allows homegrown biofuels to supply a growing share of our energy needs, which is currently about 10 percent of all motor fuel. The renewable fuel standard has been successful in protecting American energy security, and at no cost to consumer or taxpayers. READ MORE
