Sanders, Democrats decry possibility of assistance to oil companies amid coronavirus outbreak

Sanders, Democrats decry possibility of assistance to oil companies amid coronavirus outbreak
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Sens. Ed MarkeyEdward (Ed) John MarkeyHillicon Valley: Twitter says Chinese official's virus disinformation doesn't violate rules | Hackers target WHO | Senators urge agencies to stop coronavirus robocalls Senators urge FCC, DOJ to combat coronavirus robocalls Democrats fume over GOP coronavirus bill: 'Totally inadequate' MORE (D-Mass.), Jeff MerkleyJeffrey (Jeff) Alan MerkleyHouse bill would ban stock trading by members of Congress Lawmakers ask Trump administration to help Gulf oil and gas producers Overnight Energy: Trump prepares to buy 30M barrels of oil amid industry slump | Coronavirus offers reprieve from air pollution | Energy regulators split on delaying actions amid outbreak MORE (D-Ore.) and Bernie SandersBernie SandersWith VP pick, Biden can't play small ball in a long ball world Poll: Trump, Biden in dead heat in 2020 matchup Sunday shows preview: Lawmakers, state governors talk coronavirus, stimulus package and resources as pandemic rages on MORE (I-Vt.) wrote a letter to President TrumpDonald John TrumpWith VP pick, Biden can't play small ball in a long ball world Coronavirus hits defense contractor jobs Wake up America, your country doesn't value your life MORE on Thursday saying that the administration should not provide financial assistance to oil companies which have been hit by declining oil prices due to both the coronavirus and international trade disputes. 

“Using federal assistance—including low-interest loans, royalty relief, tax breaks, or strategic petroleum reserve purchases—in order to prop up oil companies would be a wasteful misuse of government resources that would exacerbate the climate crisis,” they wrote.

An administration official told The Hill on Tuesday that the White House was considering federal assistance for the industry, but stressed that such assistance should not be considered a bailout. However, Democrats, including Markey, Merkely and Sanders, have described the possible aid as such.

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The Washington Post first reported that the White House was considering assistance for oil and gas producers. Three people told the Post that the aid would probably be in the form of low-interest government loans to the shale companies.

The senators wrote in their letter to the president that a White House response should instead include increased funding for testing, research and vaccine development. 

“The effect that this disease is having on the American workforce, health care system, and economy is clearly illustrating the ramifications of this administration's erosion of our safety net programs and its poor response to the crisis. These are actual crises that require urgent action; the loss of value of oil executives' stock options is not,” they wrote. 

“We can better protect oil industry workers through policies that support workforce rights and a just, collaborative, and deliberative transition to a clean energy economy,” the lawmakers added. 

Major oil industry organizations have said they are not asking the Trump administration for assistance. 

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“We are not in discussions with anyone at the administration at this time on any kind of program for the industry,” American Petroleum Institute President and CEO Mike Sommers told reporters on a press call on Monday.

He has since told Fox Business, “We want the market to work, so we’re not interested in what some people are proposing right now in terms of federal bailouts.”

Others have expressed support for some type of assistance. 

Harold Hamm, the executive chairman of oil producer Continental Resources, told The Washington Post that a government lending program “could be helpful.” 

Hamm also said that he had reached out to the Trump administration.

Russia declined last week to join the OPEC nations in agreeing to cut production in response to the slowdown in demand caused by the coronavirus.

In response, Saudi Arabia announced that it would increase its oil production, flooding the market and causing a sharp decrease in price.