The
House of Representatives
is expected to vote Tuesday on legislation designed to ban sales of crude
oil
from the nation’s Strategic Petroleum Reserve to
China
, something that quickly became a Republican priority last Congress after Chinese buyers purchased shares of President Joe Biden’s record-breaking emergency drawdown.
The Protecting Americaâs Strategic Petroleum Reserve from China Act would prohibit the Department of Energy from selling oil from the reserve to any entity owned, controlled, or influenced by the Chinese Communist Party. It is set to be fast-tracked alongside a handful of other bills given priority treatment under the House GOP’s rules package, which the new majority will try to pass Monday.
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Republicans’ rules package provides that legislation is to be taken up by committees before being brought to the House floor, common practice for the chamber, but it exempts several bills that are to be brought before the House immediately without committee consideration, including the reserve bill.
The legislation is aimed at two Republican priorities: thwarting China and counteracting the Biden administration’s use of the oil reserves.
Biden ordered emergency drawdowns in 2022 totaling more than 200 million barrels of oil from the reserve after Russia’s invasion of Ukraine sent oil prices soaring. Some releases were authorized in conjunction with other nations releasing their own reserve oil, while others were not.
Republicans criticized the drawdowns, arguing that Biden’s motivations were about improving his party’s chances during the midterm elections rather than market fundamentals.
Members were further incensed at the Biden administration following news that Chinese buyers acquired volumes of the reserve oil. Chinese companies
have contracted
with the DOE for reserve oil in the past, including during the Trump administration.
Republicans in both chambers responded with legislation to restrict reserve sales to adversaries such as China and Russia. Support for restrictions on sales arose on the Democratic side, too, including from Rep. Chrissy Houlahan (D-PA), who
proposed a bill
alongside several Republicans that would prohibit sales to China, North Korea, Russia, Iran, and other countries under U.S. sanctions.
Houlahan expressed frustration Monday about the Republican reserve bill being less restrictive because it excludes prohibitions against sales to adversaries other than China and said she would seek a bill that reaches more widely.
“I remain ready to work in good faith with my colleagues across the aisle to strengthen this legislation and thus our national security. Ultimately, policy must take precedence over politics if we want to best serve the American people â thatâs my goal,â Houlahan said in a statement to the Washington Examiner.
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Biden’s use of the oil reserve has been one among many sticking points for Republicans within his broader energy policy.
Republicans on the House Oversight Committee announced in October an investigation into the Biden administration’s use of the Strategic Petroleum Reserve as a means of taming high gasoline prices.
Another bill House Republican leadership wants to advance would require the administration to draw up a plan to increase oil and gas production on federal lands in conjunction with any drawdown from the reserve.
The reserve now stands below 373 million barrels, down from 638 million barrels when Biden took office, although the difference is not entirely due to Biden’s use of emergency drawdowns. The DOE has carried out several congressionally mandated sales from the reserve under Biden.
