Bill Overview
Title: SPIGOT Act of 2022
Description: This bill prohibits the importation of crude oil and petroleum products from Russia. The President may waive this prohibition by meeting certain requirements, such as certifying to Congress that the import prohibition would unduly impact energy prices for U.S. consumers. The bill also requires the President to impose sanctions on foreign individuals and entities that are involved with (1) importing crude oil and petroleum products from Russia to the United States, and (2) acts of corruption or serious human rights abuses.
Sponsors: Rep. Khanna, Ro [D-CA-17]
Target Audience
Population: People impacted by changes in the global oil market
Estimated Size: 330000000
- The bill prohibits the import of crude oil and petroleum products from Russia, directly impacting the global oil market.
- Countries heavily dependent on Russian oil imports may face supply disruptions.
- The bill's sanctions on foreign individuals and entities involved in importing Russian oil to the U.S. may affect international businesses and their employees.
- Global consumers of oil may also experience changes in oil prices due to shifts in the supply-demand balance resulting from the legislation.
Reasoning
- Not all U.S. consumers or businesses will be directly impacted by this policy, but those with direct ties to the oil industry or who rely on affordable energy are likely to feel the effects.
- The policy targets a segment of international oil trade, possibly redistributing supply in the market and affecting global oil prices.
- U.S. refineries that depend on Russian oil may face operational changes, impacting workers and supply chain partners.
- Consumers might see fluctuations in gasoline prices, influencing their day-to-day expenses and overall wellbeing.
Simulated Interviews
Oil Refinery Worker (Houston, Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- I am concerned about losing my job if we can't replace the Russian crude processing with something else.
- Energy markets are volatile and this could make things more unpredictable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 4 | 6 |
| Year 5 | 4 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 7 | 6 |
Financial Analyst (New York, New York)
Age: 52 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy might lead to increased volatility in oil prices, impacting market stability.
- It could also create opportunities in alternative energy sectors.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Factory Worker (Detroit, Michigan)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Rising gas prices would stretch my budget thin and affect my everyday life.
- I hope alternative sources of oil can fill the gap quickly.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Retired (Chicago, Illinois)
Age: 60 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm worried about how increases in heating and electricity costs could affect my retirement savings.
- Policymakers need to ensure that basic energy needs remain affordable.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Tech Startup Entrepreneur (San Francisco, California)
Age: 25 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This policy could push faster adoption of alternative energy, which aligns with my business goals.
- Increased oil price volatility might drive more investment into renewable tech.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Trucking Company Owner (Phoenix, Arizona)
Age: 38 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Fuel costs are a major concern; if prices rise, it affects my business directly.
- If the policy raises diesel prices, we would need to adjust our pricing strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 8 | 6 |
University Student (Boulder, Colorado)
Age: 22 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 5/20
Statement of Opinion:
- Transitioning away from Russian oil could benefit the environment in the long term.
- I support policies that push for renewable energy and reduce oil dependency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Miami, Florida)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- If consumer spending declines due to higher energy costs, it could lower my store revenues.
- We might see shifts in purchasing patterns with higher gas prices.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Environmental Activist (Seattle, Washington)
Age: 34 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 20.0 years
Commonness: 5/20
Statement of Opinion:
- Anything that moves the U.S. away from oil dependence is a step forward.
- This policy could foster more innovation in clean energy, which is essential.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Healthcare Worker (Boston, Massachusetts)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- Rising commuting costs would put additional strain on my finances.
- Healthcare budgets might get affected if operational costs rise.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Cost Estimates
Year 1: $50000000 (Low: $30000000, High: $70000000)
Year 2: $45000000 (Low: $28000000, High: $60000000)
Year 3: $40000000 (Low: $25000000, High: $55000000)
Year 5: $35000000 (Low: $22000000, High: $50000000)
Year 10: $30000000 (Low: $20000000, High: $45000000)
Year 100: $10000000 (Low: $5000000, High: $20000000)
Key Considerations
- The potential for global oil market disruptions and price volatility due to sanctions and import bans.
- The ability of the U.S. market to adjust to alternative oil supply sources could mitigate energy price increases.
- The sanctions may face legal challenges and require significant coordination with global partners.
- Monitoring and compliance costs could fluctuate based on geopolitical developments.