Hoeven Statement on Agreement to Cut Oil Production

BISMARCK, N.D. – Senator John Hoeven, a member of the Senate Energy and Natural Resources Committee, today issued the following statement after Saudi Arabia, Russia and other oil-producing nations reached an agreement to cut oil production by nearly 10 million barrels per day (bpd). Hoeven has been working with the administration to put an end to the oil price war and spoke with Energy Secretary Dan Brouillette yesterday to discuss the progress of his negotiations. Further, the senator this weekend again pressed Princess Reema Bandar Al Saud, the Saudi Arabian Ambassador to the U.S., and Abdulaziz bin Salman Al Saud, the Saudi Energy Minister, on ending the price war, stressing the need to focus on combatting the impacts of the COVID-19 pandemic.

“This is a welcome step toward providing stability in the global energy markets and helping our domestic oil and gas producers to weather the economic challenges from COVID-19,” said Hoeven. “We’ve worked closely with the administration, including the President and Secretary Brouillette, to secure this agreement and have been pressing the Saudi leadership to end the global oil price war. We have more work ahead of us to maintain our energy security by helping U.S. producers during these historic times, which is why we will continue with our efforts to open the SPR for purchases of U.S. oil.”

Hoeven has been working to stop the global oil price war. Specifically, the senator has pressed to resolve the issue, including: 

  • In meetings and phone calls with President Trump, Energy Secretary Dan Brouillette, Secretary of State Mike Pompeo and other administration officials.
  • In phone calls with Princess Reema Bandar Al Saud, the Saudi Arabian Ambassador to the U.S., where the Senator emphasized that Saudi Arabia needs to work with the United States and the community of nations to end the price war. 
  • Through a letter to the Saudi Crown Prince Hoeven joined with his Senate colleagues.
  • With energy officials from international partners, urging their support to reach an agreement on global production.

In addition, the Senator has worked to support the domestic oil and gas industry, by:

  • Announcing bipartisan, bicameral legislation to provide $3 billion in funding to purchase crude oil produced in the United States for the Strategic Petroleum Reserve (SPR). The legislation aligns with the request made by President Donald J. Trump and Energy Secretary Dan Brouillette to fill the SPR. 
  • Working with Energy Secretary Brouillette to open the SPR to American producers for leased storage on a temporary basis.
  • Encouraging “Buy American” efforts.

Earlier this week, Hoeven hosted Assistant Secretary for Fossil Energy Steven Winberg and Small Business Administration (SBA) North Dakota District Director Alan Haut in a video conference with the North Dakota Petroleum Council and its members, where the senator outlined efforts to support the domestic oil industry and end the global oil price war, as well as highlighted support available to North Dakota’s energy producers through the Coronavirus Aid, Relief, and Economic Security (CARES) Act.