The
House of Representatives
passed legislation Thursday banning sales of crude
oil
from the nation’s Strategic Petroleum Reserve to
China
, a move taken after a portion of President Joe Biden’s record drawdown from the reserve in 2022 went to Chinese buyers.
In a 331-97 vote, the lower chamber approved the Protecting America’s Strategic Petroleum Reserve from China Act, which
would prohibit
the Department of Energy, which manages the reserve, from selling oil to any entity owned, controlled, or influenced by the Chinese Communist Party. The bill was fast-tracked alongside a handful of other bills given priority treatment under the House GOP’s new rules package.
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Cutting off Chinese access to oil from the reserve
became a hot topic
last summer when news broke that China had acquired barrels, angering many Republicans and some Democrats who saw the result as contrary to American interests. Lawmakers in both chambers introduced legislation to cut off geopolitical foes from access to oil from the reserve.
The reserve deliveries to foreign entities are not without precedent because they can qualify to bid on the DOE’s solicitations under law. Chinese oil company Unipec has acquired some volumes in previous sales, but most reserve awards go to American buyers.
Only a small percentage of sales from the reserve have been shipped outside the United States since the crude oil export ban was lifted in 2015, and about 2% of barrels to be drawn down and sold in the last five years have gone to China, according to the Energy Department.
Some lawmakers sought more sweeping legislation that would exclude more countries than just China. Rep. Chrissy Houlahan (D-PA) reintroduced legislation Wednesday she first drew up during the last Congress that would ban sales to China, Iran, Russia, and any other country under U.S. sanctions. The bill has four dozen co-sponsors.
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Houlahan criticized Republican leadership for not subjecting the reserve bill, which was introduced by House Energy and Commerce Chairwoman Cathy McMorris Rodgers, to debate through the committee process.
“My bill is stronger, it’s bipartisan, and it has a chance in the Senate,” Houlahan said, saying it would likely fall victim to the “Senate’s legislative graveyard.”
Other Democrats criticized the legislation as weak compared to alternative proposals.
