Guam seeks solutions to looming energy crisis triggered by Iran war

By Pacific Island Times News Staff

Guam is seeking federal action to avert any fuel supply disruption and mitigate the impact of surging oil prices triggered by the escalating conflict in the Middle East.

Sen. Jesse A. Lujan wrote to President Donald J. Trump requesting an emergency Jones Act waiver for Guam-bound fuel shipments, while congressional candidate Mary Camacho Torres called on the Federal Trade Commission to review gasoline pricing on island.

Jesse Lujan

Meanwhile, Sen. William Parkinson is proposing to tap idle government funds for a new six-month power credit program to ease the consumer burden posed by a looming energy crisis.

The unabated turmoil in the Persian Gulf War, which started with the U.S.-Israeli strikes against Iran on Feb. 28, has been causing global anxiety over the vulnerable oil market.

With energy infrastructure in peril and shipment routes disrupted, analysts warn of possible supply shortages, which would further push prices to spiral.

Lujan noted that amid heightened crisis, Guam’s strategic role as a frontline American territory in the Indo-Pacific necessitates swift federal response.

 “Guam is the American homeland,” Lujan said, warning that any disruption to fuel supply would jeopardize national defense.

Lujan urged the Trump administration to approve "a narrow, targeted and immediate Jones Act waiver" for Guam-bound fuel shipments during the current emergency, while also encouraging broader federal dialogue on how the law applies to Guam in the long term.

Mary Torres

“If Guam is expected to serve as the tip of the spear for American power in the Pacific, then federal policy must reflect that reality,” he said.

Lujan said current restrictions under the Jones Act might compel Guam to resort to foreign supply chains and circuitous routing because the domestic shipping capacity required under federal law is either unavailable or commercially unrealistic.

“The current system is not America First,” Lujan said. “It is America Last for the Pacific. There is nothing strategic about forcing a U.S. territory at the center of America’s Indo-Pacific posture to remain exposed to foreign hubs and overseas instability when American energy should be able to move directly to American soil.”

Torres, a former senator, wrote to Andrew Ferguson, the FTC chairman, requesting that the commission examine Guam’s fuel market.

She noted that the Federal Trade Commission Act authorizes the agency to study market conditions when questions arise about competition or pricing.

“Global conflicts may explain rising prices,” Torres wrote, “but they should never prevent consumers from receiving clear and independent information about how those prices are determined.”

Regular gas prices on Guam have gone up to $5.30 per gallon, while diesel rose to around $6.54 per gallon. 

MSN reported that the price of oil kept climbing Monday, having surged past $100 per barrel Sunday, the first time it crossed that mark since Russia’s 2022 invasion of Ukraine. Brent crude, the global oil benchmark, neared $120 a barrel in early trade before paring some of those gains to trade at around $104, MSN reported.

William Parkinson

President Trump said, “Short-term oil prices, which will drop rapidly when the destruction of the Iran nuclear threat is over, are a very small price to pay for the U.S.A. and world safety and peace."

At the legislature, Parkinson has drafted a bill proposing to tap unused surplus revenue for a power credit program, which he estimated to cost about $34 million.

“The latest (Consolidated Revenue and Expenditure Report) shows roughly $38.9 million in net unobligated excess revenues, so the funding exists today to do it,” he said.

“The people of Guam will decide whether they want that money as power bill relief for families or as additional business tax breaks,” Parkinson said.

“My view is simple. When the cost-of-living rises, the government should be looking at ways to put money back into the pockets of working families, not make their bills harder to pay,” he added.

Parkinson noted that energy price shocks create a domino effect, hitting not just power bills but also groceries, rent, transportation and every corner of a household budget.

“If global oil prices keep rising, we need to be ready to cushion that blow,” he said. “The funds are there. The question now is whether we use them to help working families weather the storm.”

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