225
the withdrawal of US troops, Patriot missiles, and the Todd missile defense system
from Saudi Arabia. The plan was to impose pressure on Saudi Arabia to reduce oil
production to prevent a further drop in oil prices. Eleven other Republican senators,
including Bill Cassidy, who introduced a 30-day plan to withdraw US troops from
the Senate, spoke with Saudi officials (foreignpolicy.com 2020a, b).
While the plan is unlikely to pass in the US Congress, it is unusual for US senators to impose pressure on Saudi Arabia, a longtime ally, writes Reuters. The US
senators spoke with the Secretary of Energy, the Deputy Secretary of Defense, and
the Saudi Ambassador to the United States (www.reuters.com 2020a, b, c, d, e, f, g,
h, i). Sullivan, a US senator from Alaska, praised Saudi Arabia’s participation in the
deal to reduce oil production but said action was better than words. He stressed that
Saudi Arabia must urgently take sustainable and concrete measures to significantly
reduce oil production. Senator Kramer also called Saudi Arabia’s increase in oil
production during the global corona epidemic “unjustified” and said it would “not
be forgotten.” While declining global oil demand has pushed down oil prices and
pushed some producers to the brink of bankruptcy, the United States, the world’s
largest oil producer, is gradually reducing its oil production by two million barrels
per day. The move by Republican senators was a sign that Congress could step up
pressure on Saudi Arabia and take serious action in the coming months if Saudi
Arabia does not accept a drop in oil production. The number of US military personnel in Saudi Arabia in January was 2500. In October 2019, as tensions in Washington
escalated, about 3000 troops left for Saudi Arabia (www.cnbc.com 2020a, b, c).
US–China Trade Deal
As costs are rising in the present time, industries are experiencing more difficult
times in affording oil. Indeed, there are numerous oilfield service companies that
have still not been able to overcome the impacts of the 2014 price collapse, as
recently reported by Weatherford International, one of the four prominent oilfield
services companies in the world. In such a context, if oilfield service companies
channel themselves toward Chinese manufacturing, it is inevitable that the global
supply chain will continue to be increasingly disrupted. On the other hand, there are
doubts as to whether Asian suppliers of lower quality will be able to meet increasing
demands (www.forbes.com 2020a, b, c, d, e).
The limited sales of US LNG to China as part of the January 2020 US–China
trade deal will do little to block rising exports from Qatar and Russia, which will
impact future financing. Figures from the US Department of Energy indicate that
China imported 21.1 Bcf of US LNG during the month of April 2020, after Beijing
started granting tax waivers to some importers. This however did not last. Exports
to China were reduced to two ships in June 2020 with one scheduled to sail in July
2020. At present, preferring imports from cheaper LNG spots, China appears to be
buying from alternative sources. The interest of the Chinese in spot LNG is growing
due to demand from independent Chinese buyers, such as ENN Energy Holdings
US–China Trade Deal
the withdrawal of US troops, Patriot missiles, and the Todd missile defense system
from Saudi Arabia. The plan was to impose pressure on Saudi Arabia to reduce oil
production to prevent a further drop in oil prices. Eleven other Republican senators,
including Bill Cassidy, who introduced a 30-day plan to withdraw US troops from
the Senate, spoke with Saudi officials (foreignpolicy.com 2020a, b).
While the plan is unlikely to pass in the US Congress, it is unusual for US senators to impose pressure on Saudi Arabia, a longtime ally, writes Reuters. The US
senators spoke with the Secretary of Energy, the Deputy Secretary of Defense, and
the Saudi Ambassador to the United States (www.reuters.com 2020a, b, c, d, e, f, g,
h, i). Sullivan, a US senator from Alaska, praised Saudi Arabia’s participation in the
deal to reduce oil production but said action was better than words. He stressed that
Saudi Arabia must urgently take sustainable and concrete measures to significantly
reduce oil production. Senator Kramer also called Saudi Arabia’s increase in oil
production during the global corona epidemic “unjustified” and said it would “not
be forgotten.” While declining global oil demand has pushed down oil prices and
pushed some producers to the brink of bankruptcy, the United States, the world’s
largest oil producer, is gradually reducing its oil production by two million barrels
per day. The move by Republican senators was a sign that Congress could step up
pressure on Saudi Arabia and take serious action in the coming months if Saudi
Arabia does not accept a drop in oil production. The number of US military personnel in Saudi Arabia in January was 2500. In October 2019, as tensions in Washington
escalated, about 3000 troops left for Saudi Arabia (www.cnbc.com 2020a, b, c).
US–China Trade Deal
As costs are rising in the present time, industries are experiencing more difficult
times in affording oil. Indeed, there are numerous oilfield service companies that
have still not been able to overcome the impacts of the 2014 price collapse, as
recently reported by Weatherford International, one of the four prominent oilfield
services companies in the world. In such a context, if oilfield service companies
channel themselves toward Chinese manufacturing, it is inevitable that the global
supply chain will continue to be increasingly disrupted. On the other hand, there are
doubts as to whether Asian suppliers of lower quality will be able to meet increasing
demands (www.forbes.com 2020a, b, c, d, e).
The limited sales of US LNG to China as part of the January 2020 US–China
trade deal will do little to block rising exports from Qatar and Russia, which will
impact future financing. Figures from the US Department of Energy indicate that
China imported 21.1 Bcf of US LNG during the month of April 2020, after Beijing
started granting tax waivers to some importers. This however did not last. Exports
to China were reduced to two ships in June 2020 with one scheduled to sail in July
2020. At present, preferring imports from cheaper LNG spots, China appears to be
buying from alternative sources. The interest of the Chinese in spot LNG is growing
due to demand from independent Chinese buyers, such as ENN Energy Holdings
US–China Trade Deal