Congressional Candidate August Pfluger Reconfigures Campaign to Face the Pandemic and Oil Price Crash

Editor's Note: August Pfluger sat down for an interview with us earlier this month and discussed the regional economy that is currently impacted by the dual crisis of the coronavirus pandemic and the crash in oil prices. Above is that interview in its entirety. Pfluger penned this op-ed based in part on what what discussed with San Angelo LIVE!'s Joe Hyde in the video. August Pfluger was elected as the GOP candidate in the March primary for Texas 11th Congressional District to replace U.S. Representative Michael Conaway. He is a Lieutenant Colonel in the Air Force Reserve and previously served as a combat aviator and national security advisor in the White House under President Donald Trump. The interview was sponsored by Twin Mountain Fence and McMillan Crop Insurance. Sponsorship does not imply endorsement.

OPINION by August Pfluger — For nearly 80 years, the United States and the Kingdom of Saudi Arabia maintained one of the strongest economic, diplomatic, and mutual defense relationships in the world. However, as our nation battles the global COVID-19 pandemic and a potentially disastrous economic recession, the Saudis have deliberately turned their backs on their most important international ally.

On March 6, Saudi Crown Prince Mohammed bin Salman issued a directive to dump over 10 million barrels of crude oil onto the world market in a destructive attempt to engage the Russian Federation in a global price war. This unprecedented action severely depressed the price of oil at a time when demand was already falling, and though it may have been aimed at Russia, Texas oil and gas producers are the ones feeling the pinch.

Several months ago, Diamondback Energy CEO Travis Stice delivered an inspirational keynote address to Midland’s annual “State of Oil and Gas” luncheon wherein he discussed the importance of the Permian Basin’s production, not just for our local and state economies, but also for the U.S. economy as a whole. Today, the United States stands as the undisputed leader of global oil and gas production, generating more than 12.2 million barrels per day – 40 percent of which comes from the Texas Permian Basin. If Texas were its own country, we would currently be the world’s fourth largest producer of oil and gas. That production resonates across the state as a major source of revenue, especially our higher education system.

Why is this so important? Because oil and gas is more than a source of energy … it’s a source of power, security, and influence on the international stage.

Abundant supplies of domestic oil during World War II enabled the U.S. military to stand on its own and deliver knockout blows in two separate theaters of engagement, saving millions from the tyranny of Germany and Japan. Just a few months ago, U.S. supply enabled President Trump to strike Iranian General Qassim Soleimani, one of the most evil terrorist masterminds on the planet. U.S energy capacity represents a unique instrument of power that must be protected in order to propel our economy and preserve our national security. In fact, the U.S. government has served as a stabilizing influence in the Middle East since 1945 and no single country has benefited more from that assistance than Saudi Arabia. For decades, the U.S. has supplied Saudi Arabia with billions of dollars in arms and equipment in support of its national defense. We have deployed hundreds of thousands of troops to the region and have worked non-stop to deter Iran, the Kingdom’s most dangerous enemy.

Exactly 25 years after watching the Gulf War on TV, I found myself engaged in battle over those same skies, fighting against the de-stabilizing forces of ISIS, a violent extremist group that had the potential to severely damage the global energy market and threaten Saudi Arabia’s domestic and regional security. From deterring communism, to leading the Gulf War against Iraq, to combatting violent extremism, the U.S. has done more than our fair share to bring stability to the region.

That’s why this ill-conceived and irresponsible price war being waged by the Saudi government deserves to be called out for what it is: a direct assault on U.S. oil and gas producers, the U.S. economy, and the American people.

The economic disruption caused by COVID-19 alone is massive but coupled with Saudi Arabia’s war on domestic oil and gas production, the long-term effects could be devastating. According to economist Ray Perryman, the Permian Basin stands to lose more than 41,000 jobs and $7.5 billion in GDP unless something changes, and changes quickly.

As the Republican nominee to represent the Permian Basin in Congress, I plan to work with President Trump to secure our domestic energy independence and I urge the administration to use any and all leverage at our disposal to return Saudi production back to normal levels during this time of extreme crisis. This means rapidly unleashing U.S. diplomatic, economic, and military channels in conveying the negative impacts of ignoring market principles.

If the Saudi leaders hope to maintain the Kingdom as our ally in the future, now is the time to act like it.