Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. House passes bill banning exports of reserve oil to China

Published 01/12/2023, 12:08 PM
Updated 01/12/2023, 12:44 PM
© Reuters. FILE PHOTO: A person walks past the U.S. Capitol building at sunset as the Republican-controlled House of Representatives reconvenes on Capitol Hill in Washington, U.S., January 9, 2023. REUTERS/Leah Millis/File Photo

By Timothy Gardner

WASHINGTON (Reuters) - The U.S. House of Representatives overwhelmingly passed a bill on Thursday to ban releases of oil from the U.S. Strategic Petroleum Reserve from being exported to China, though the measure faces an uncertain future in the Senate.

The bill passed 331-97 in the House, which Republicans took narrow control of this month. All of the "no" votes came from Democrats.

The issue of U.S. oil exports to China became a rallying call for Republicans last year when President Joe Biden, a Democrat, announced the sale of 180 million barrels from the SPR to tame oil prices that rose due to Russia's war on Ukraine.

Through October last year U.S. oil companies exported nearly 67 million barrels of oil to China.

But in all of 2020, when Republican Donald Trump was president, the United States exported 176 million barrels to China.

"We shouldn’t hand the keys to our energy future over to the Chinese Communist Party," said Representative Cathy McMorris Rodgers, a Republican from Washington state. She said the Biden administration was "wasting our strategic reserves."

The legislation is one of several "messaging bills" that Republicans are seeking to pass early this year to highlight the difference between the two political parties, said Benjamin Salisbury, an analyst at Height Capital Markets. "But to get legislation into law will require tough compromises" with the Senate, which is controlled by Democrats, he said.

© Reuters. FILE PHOTO: A person walks past the U.S. Capitol building at sunset as the Republican-controlled House of Representatives reconvenes on Capitol Hill in Washington, U.S., January 9, 2023. REUTERS/Leah Millis/File Photo

The Biden administration has no set plans to conduct further sales from the SPR, though some smaller sales required by legislation passed by Congress in prior years could occur this year.

U.S. House lawmakers also voted overwhelming this week to create a select committee on China to counter Beijing's growing international influence. House Speaker Kevin McCarthy said it would address issues such as bringing jobs back from China to the United States, securing intellectual property and bringing supply chains back to the country.

Latest comments

bring the jobs back but wait for infation to cool
Great bill for national security since Biden drained SPR by 40% for no emergency.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.