MEMPHIS, Tenn. — Tennessee Congressman Steve Cohen released a statement Monday, March 7, asking President Joe Biden to immediately suspend Russian oil and gas imports to stand in support of Ukraine, confidently explaining that Americans would understand an increase in gas prices “no matter how expensive.”
According to AAA, average gas prices in Memphis currently range from $3.94 for regular gas to $4.59 for diesel. Average gas prices for Tennessee range from $3.96 for regular gas to $4.72 for diesel.
“While cutting off Russian oil and gas will likely cause gas prices to increase, Americans should be reminded that this is the price of democracy, freedom and doing what’s right,” Cohen said. “Whenever Americans are filling up their tanks, they should think that these higher prices are a way to ‘Stick it to Putin at the Pump.’
Cohen does not stand alone in his plea to the president, as talk of banning oil imports from Russia has ranked as one of the most important concerns for both Democrat and Republican politicians in the last week.
In a statement released Tuesday, March 1, Tennessee Senator Martha Blackburn said, "We are buying 600,000 barrels of oil from Russia every single day. This means Joe Biden is financing Vladimir Putin's war. It is time to stop buying oil."
A bipartisan group of lawmakers pushed the Ban Russian Energy Act Thursday, March 3. The group of lawmakers are working to fast track the act through the Congress and the Senate, which would ban all U.S. imports of Russian energy resources.
At a weekly press conference, Congresswoman Nancy Pelosi confirmed that America has sent billions of dollars to support Ukraine security intelligence and for economic assistance. When asked about where she stood on banning Russian oil imports, Pelosi said “I’m all for that. Ban it.”
Memphians, Tennesseans, and Americans all over the world question what “ban it” means for their pockets, and just how high oil prices will rise.
The U.S. Energy Information Administration acknowledged that oil prices were already on the rise before the crisis in Ukraine, as demands for oil supply increased when the world began to return to normalcy after the pandemic.
Although the crisis in Ukraine is not the sole reason gas prices increased, it is making matters worse and causing gas prices to be even higher. EIA reported that Brent crude oil, which is a type of crude oil from the North Sea and often used as a global benchmark, prices are on a high of around $131 per barrel reaching $4.102 per gallon on Monday, March 7.
Economists at Capital Economics informed that a complete ban on oil imports from Russia may cause the price to jump to a high of $160 per barrel, which is higher than the record of $147 per barrel that was reached during the recession in 2008.
The true question is, will America’s ban of Russian oil imports truly hit Putin where it hurts, or will it just be a symbol of standing in solidarity that will ultimately leave American pockets dry and families struggling?
America’s oil trade with Russia is more beneficial to the U.S. than it is to Russia. Plainly, it will not heavily impact Russia if America bans Russian oil imports.
According to EIA, the U.S. imports 7 to 10% of its total oil from Russia, while Russia only exports 1% of its total oil to the U.S.
Economist believe that banning Russian imports would just allow Putin to find other buyers.
Although the percentage of oil America imports from Russia is small when compared to how much oil the U.S. imports from Canada and Mexico, the U.S. would still need to find somewhere else to purchase oil from if it bans oil imports from Russia. Buying oil from another country may still drive up oil prices because sweet crude oil from Russia is cheaper, it can be used to make multiple oils, which is why the U.S. uses Russia’s energy resources.
What would hurt Russia's economy is if European allies followed suit in banning Russian oil imports, being that Russia exports half of its oil to Europe. However, Europe greatly depends on Russian oil, making banning its resources a hard call.
As the crisis in Ukraine progresses, Putin has become unruly, and he has made several unreasonable threats, assuring that he will consider any interruption of his quest to gain control over Ukraine as a participation in their war.
U.S. House Chair of Intelligence Adam Schiff said the U.S. is currently exploring its options as it weighs between possibly importing oil from Venezuela and Iran.
Americans should prep their pockets, as support for Ukraine will be costly.