U.S. Senator Bill Cassidy, M.D. (R-LA) and chairman of the Senate Energy Subcommittee, intends to introduce legislation when Congress reconvenes that would impose tariffs on oil imports from Saudi Arabia and withdraw American troops from the country.
The bill is in response to Saudi Arabia’s manipulation of the oil market that is threatening American energy jobs. Saudi Arabia has slashed oil prices below the cost of production, which has made it impossible for American producers to compete. Saudi Arabia’s actions, coupled with a steep decline in demand due to the coronavirus lockdown, have put at risk the viability of the American oil and gas industry and the tens of thousands of jobs it provides.
“Our nation’s economy, national security and the economic welfare of families across Louisiana is threatened by oil being dumped on the world market at below-production costs. The US spends billions protecting other oil producing countries and their ability to safely transport oil around the world. Now is the time to protect ourselves. Tariffs will restore fair pricing. Withdrawing troops placed to protect others recognizes that friendship and support is a two-way street,” said Dr. Cassidy.
The bill requires that the United States removes all troops from Saudi Arabia 30 days after enactment, and it prohibits funds from being used to keep US troops there.
It also requires the president to impose tariffs on Saudi petroleum and any petroleum-related produce or byproduct to ensure the price of Saudi imports in not less than $40 per barrel, or face penalties.