Sens. John Fetterman (D-Pa.) and Joni Ernst (R-Iowa) introduced the bipartisan Banning Oil Exports to Foreign Adversaries Act on March 21.
The legislation will ban the sale or export of oil from the U.S. Strategic Petroleum Reserve (SPR) to foreign enemies.
The new bill will specifically prohibit sales to any organization owned, controlled, or influenced by the Chinese Communist Party (CCP) as well as to the nations of China, Russia, Iran, Venezuela, Syria, and Cuba.
Sens. Sherrod Brown (D-Ohio), Bob Casey (D-Pa.), and Tom Cotton (R-Ark.) joined as cosponsors.
“Our adversaries should not be able to purchase oil from our SPR—that’s just commonsense. We must prioritize our national security.
“This is a good bill that has overwhelming bipartisan support in both chambers. I’m proud to lead it with Sen. Ernst.”
Ms. Ernst stated: “Energy security is national security, which is why it is essential to safeguard our strategic supply of oil from benefitting our enemies.”
A bipartisan effort was spearheaded last July by Mr. Fetterman and Ms. Ernst to add a bill similar to this one in the FY2024 National Defense Authorization Act (NDAA).
The Senate easily approved the amendment 85–14. However, it was eventually removed from the final bill.
“This bipartisan legislation puts a stop to a practice that should’ve ended a long time ago. Passing this bill in the House was a great step in the right direction and I hope it will be taken up by the Senate and be signed into law to protect our national security.”
Congress created the SPR in 1975 to lessen the effects of disruptions to the oil supply on the U.S. economy.
As the world’s largest reserve of crude oil for emergencies, it still serves as a way to fortify and safeguard the national, economic, and energy security of the United States.
The SPR is overseen by the U.S. Department of Energy, which also periodically holds competitive public auctions to sell excess crude oil to the highest bidders.
According to the press release from Ms. Houlahan’s office, foreign businesses with close ties to nations antagonistic to the United States have won these auctions under both the Biden and Trump administrations, providing anti-democratic governments with access to U.S.-sourced energy supplies.
Ms. Ernst said, when introducing the Senate bill: “This bipartisan bill will ensure America’s Strategic Petroleum Reserve does not fall into the hands of those trying to harm us and ensure CCP-controlled businesses are not making money by stockpiling taxpayer-subsidized oil.
“We cannot put Americans last when our adversaries are seeking any opportunity to gain a foothold over us.”
Mr. Brown also weighed in, highlighting his concern about potentially allowing adversarial nations access to U.S. energy resources: “We can’t allow oil from the U.S. Strategic Petroleum Reserve to fuel China’s state-sponsored industries.
“The Chinese Communist Party uses that energy to cheat and undermine Ohio production and Ohio jobs.
“Blocking China and other adversaries from accessing our critical energy reserves will protect our national security.”
