In a Tweet, US House Majority Leader Steve Scalise announced the U.S. House of Representatives will vote this week to end all sales of oil from the Strategic Petroleum Reserve to China.
Scalise noted a vote on the measure will occur on Tuesday or Wednesday.
The No Emergency Crude Oil for Foreign Adversaries Act was introduced over the summer by Senators James Lankford and Ted Cruz. The bill would ban the sale of oil from the Strategic Petroleum Reserve to nations in competition with the United States, such as China.
At the time, Senator Cruz said, “At a time of skyrocketing inflation and record gas prices, and with SPR drained to its lowest level since 1986, it is reckless and inexplicable that President Biden would allow oil from the Strategic Petroleum Reserve to be exported to China. This practice poses a direct threat to American national security, not least of all because the Chinese Communist Party is currently stockpiling oil for strategic use, and the Biden administration is aiding their effort.”
The current bill, the H.R. 22, Protecting America’s Strategic Petroleum Reserve from China Act, “will prevent further direct or indirect sales and exports from our Strategic Petroleum Reserve to the Chinese Communist Party and help end Biden’s abuse of our strategic reserves.”
Currently crude oil sales from the nation’s Strategic Petroleum Reserve are allowed to be made to whichever companies make the highest offer, which can include the U.S. subsidiaries of foreign companies, which are then allowed to ship that oil overseas.
Last year’s emergency SPR sales were in part sold to some Chinese-owned companies, including Unipec America, a U.S. firm wholly owned by China’s state-run oil company Sinopec.
This practice was questioned over the summer, as gas prices sat at record highs. Critics were quick to point out that shipping U.S. oil to China would not do much to lower the price of gas at home immediately, while Americans were suffering.
Shell Trading, Phillips 66, Marathon Petroleum Supply and Trading, Macquarie Commodities Trading US, Valero Marketing and Supply, and Equinor Marketing and Trading received the last batch of SPR contracts. Deliveries were to be completed by December 31st, and would close out the 180 million barrel release from the Reserve announced by the Biden administration in March of 2022.