Posted March 8, 2022 at 1:33pm
President Joe Biden issued a ban on the import of oil, gas and coal from Russia in an effort to punish the country for its invasion of Ukraine. He warned the move would require Americans to endure higher gasoline prices.
Biden, who had been hesitant to sanction Russian energy commodities, said Tuesday he made the decision after consulting with allied nations, including in Europe, which is reliant on Russian gas to generate electricity.
“We’re moving forward with this ban understanding that many of our European allies and partners may not be in a position to join us,” Biden said.
German Chancellor Olaf Scholz said Monday his nation was not immediately willing to cut off Russian gas.
“This is a step that we’re taking to inflict further pain on Putin,” Biden said of Russian President Vladimir Putin, adding that the import freeze may lead to higher gasoline prices domestically. “There will be a cost as well here in the United States.”
Biden’s announcement Tuesday comes less than a week after lawmakers introduced bipartisan legislation in both chambers of Congress to shut off U.S. imports of Russian oil, gas and coal and on the heels of calls from Democrats and Republicans to ban imports of all three fuel sources from Russia.
[Moves to ban gas and oil imports from Russia gain steam]
Speaker Nancy Pelosi said Tuesday the House would vote on and pass a bill that bans the import of Russian oil and gas products. “This will cut off a major source of revenue for Putin,” Pelosi said in a letter to Democratic colleagues. “Separately, as we work to diminish the Russian economy, we remain laser-focused on bringing down energy costs for American families and our partners.”
The announcement came a week after the administration said it would release 30 million barrels of oil from the Strategic Petroleum Reserve to stabilize global markets. Thirty other oil-producing nations pledged to release a total of 30 million barrels from their reserves as well.
[US, allies to release oil from reserves to stabilize markets]
Biden did not take questions about the ban. He is scheduled to fly to Fort Worth, Tex., for events on veterans and the environmental legacy of burn pits in which the U.S. military burned toxic substances and waste in war zones.
Drilling
While members of both parties greeted the Russian energy ban, Republicans seized upon it to call for more domestic oil and gas drilling while Democrats said the economy’s sensitivity to petroleum imports underscores the need to shift toward alternative energy sources and electric vehicles.
“We should not be buying a single barrel of oil from Russia, but I want to be very clear any import ban on Russian oil that fails to flip the switch on American energy is incomplete,” said Rep. Cathy McMorris Rodgers, R-Wash., the top-ranking Republican on the Energy and Commerce Committee.
“Our allies should not have to depend on energy from regimes that attack freedom, nor should Americans,” McMorris Rodgers said. “We are facing the gravest military and economic crisis in Europe since WWII.”
While U.S. gas prices lag global prices, the national average Tuesday hit $4.17, up more than $1.30 from a year ago and the highest prices the country has seen since July 2008, according to AAA, the automotive club.
“Banning Russian oil and gas imports is an important part of our broader efforts to deliver crippling consequences to Putin for his unconscionable invasion of Ukraine,” said Sen. Maggie Hassan, D-N.H. “I supported these sanctions along with a bipartisan group of my colleagues, and with President Biden’s announcement today, we continue to send an unwavering, bipartisan message that we will not tolerate Putin’s actions.”
Three percent of U.S. imports of crude oil came from Russia in 2021, according to the American Fuel and Petrochemical Manufacturers, a trade group for the refining industry. Of the rest, 61 percent came from Canada, 10 percent from Mexico and 6 percent from Saudi Arabia.
Complications
A 1920 law called the Jones Act, which requires merchandise moving between two U.S. ports be shipped on vessels that Americans built, own and primarily crew, leads some regions of the country to rely on less-expensive imports from foreign nations, including Russia.
[US shipping rules complicate bid to ban Russian oil and gas]
Hawaii in particular has high fuel costs, due in part to the Jones Act, analysts say.
Environmental groups throttled down on Biden after he announced the
ban, pressing him to expand renewable energy sources to weaken the geopolitical hands of oil-heavy nations, such as Russia.
“If Biden sides with fossil fuel executives who are capitalizing on instability, war, and mass suffering, there will be irreversible ramifications that would undermine any chance of him achieving his climate goals,” said Varshini Prakash, executive director of the Sunrise Movement. “But if Biden ushers in a new era of renewable energy, he could be the president that finally declares independence from fossil fuel tyrants and authoritarian petrostates.”
Posted March 8, 2022 at 1:33pmPresident Joe Biden issued a ban on the import of oil, gas and coal from Russia in an effort to punish the country for its invasion of Ukraine. He warned the move would require Americans to endure higher gasoline prices.Biden, who had been hesitant to sanction Russian energy commodities, said Tuesday he made the decision after consulting with allied nations, including in Europe, which is reliant on Russian gas to generate electricity.“We’re moving forward with this ban understanding that many of our European allies and partners may not be in a position to join us,” Biden said.German Chancellor Olaf Scholz said Monday his nation was not immediately willing to cut off Russian gas.“This is a step that we’re taking to inflict further pain on Putin,” Biden said of Russian President Vladimir Putin, adding that the import freeze may lead to higher gasoline prices domestically. “There will be a cost as well here in the United States.”Biden’s announcement Tuesday comes less than a week after lawmakers introduced bipartisan legislation in both chambers of Congress to shut off U.S. imports of Russian oil, gas and coal and on the heels of calls from Democrats and Republicans to ban imports of all three fuel sources from Russia.[Moves to ban gas and oil imports from Russia gain steam]President Joe Biden announced a full ban on imports of Russian oil and energy products as an additional step in holding Russia accountable for its invasion of Ukraine. Speaker Nancy Pelosi said Tuesday the House would vote on and pass a bill that bans the import of Russian oil and gas products. “This will cut off a major source of revenue for Putin,” Pelosi said in a letter to Democratic colleagues. “Separately, as we work to diminish the Russian economy, we remain laser-focused on bringing down energy costs for American families and our partners.”The announcement came a week after the administration said it would release 30 million barrels of oil from the Strategic Petroleum Reserve to stabilize global markets. Thirty other oil-producing nations pledged to release a total of 30 million barrels from their reserves as well.[US, allies to release oil from reserves to stabilize markets]Biden did not take questions about the ban. He is scheduled to fly to Fort Worth, Tex., for events on veterans and the environmental legacy of burn pits in which the U.S. military burned toxic substances and waste in war zones.DrillingWhile members of both parties greeted the Russian energy ban, Republicans seized upon it to call for more domestic oil and gas drilling while Democrats said the economy’s sensitivity to petroleum imports underscores the need to shift toward alternative energy sources and electric vehicles.“We should not be buying a single barrel of oil from Russia, but I want to be very clear any import ban on Russian oil that fails to flip the switch on American energy is incomplete,” said Rep. Cathy McMorris Rodgers, R-Wash., the top-ranking Republican on the Energy and Commerce Committee.“Our allies should not have to depend on energy from regimes that attack freedom, nor should Americans,” McMorris Rodgers said. “We are facing the gravest military and economic crisis in Europe since WWII.”While U.S. gas prices lag global prices, the national average Tuesday hit $4.17, up more than $1.30 from a year ago and the highest prices the country has seen since July 2008, according to AAA, the automotive club.“Banning Russian oil and gas imports is an important part of our broader efforts to deliver crippling consequences to Putin for his unconscionable invasion of Ukraine,” said Sen. Maggie Hassan, D-N.H. “I supported these sanctions along with a bipartisan group of my colleagues, and with President Biden’s announcement today, we continue to send an unwavering, bipartisan message that we will not tolerate Putin’s actions.”Three percent of U.S. imports of crude oil came from Russia in 2021, according to the American Fuel and Petrochemical Manufacturers, a trade group for the refining industry. Of the rest, 61 percent came from Canada, 10 percent from Mexico and 6 percent from Saudi Arabia.ComplicationsA 1920 law called the Jones Act, which requires merchandise moving between two U.S. ports be shipped on vessels that Americans built, own and primarily crew, leads some regions of the country to rely on less-expensive imports from foreign nations, including Russia.[US shipping rules complicate bid to ban Russian oil and gas]Hawaii in particular has high fuel costs, due in part to the Jones Act, analysts say.Environmental groups throttled down on Biden after he announced theban, pressing him to expand renewable energy sources to weaken the geopolitical hands of oil-heavy nations, such as Russia.“If Biden sides with fossil fuel executives who are capitalizing on instability, war, and mass suffering, there will be irreversible ramifications that would undermine any chance of him achieving his climate goals,” said Varshini Prakash, executive director of the Sunrise Movement. “But if Biden ushers in a new era of renewable energy, he could be the president that finally declares independence from fossil fuel tyrants and authoritarian petrostates.”