• Sign up for the Daily Digest E-mail
  • Facebook
  • Twitter
  • LinkedIn

BOE Report

Sign up
  • Home
  • BOE Intel
  • Headlines
    • Latest Headlines
    • Featured Companies
    • Columns
    • Discussions
  • Well Activity
    • Well Licences
    • Well Activity Map
  • Property Listings
  • Land Sales
  • M&A Activity
    • M&A Database
    • AER Transfers
  • Markets
  • Rig Counts/Data
    • CAOEC Rig Count
    • Baker Hughes Rig Count
    • USA Rig Count
    • Data
      • Canada Oil Market Data
      • Canada NG Market Data
      • USA Market Data
      • Data Downloads
  • Jobs

U.S. House backs bill limiting drawdowns from oil reserve

January 27, 202311:00 AM Reuters0 Comments

Steel long pipes in crude oil factory during sunset

The U.S. House of Representatives passed a bill on Friday limiting the ability of the energy secretary to tap the strategic oil reserve without developing plans to increase the amount of public lands available for oil and gas drilling.

Representatives backed the bill 221 to 205, with only one Democrat supporting it. President Joe Biden would veto the legislation should it pass Congress, the White House said this week. The bill is expected to face an uphill battle in the Senate, which unlike the House, is controlled by Biden’s fellow Democrats.

The Strategic Production Response Act, or H.R.21, requires the U.S. energy secretary to develop a plan to increase oil and gas leasing on federal lands, including submerged ones on the Outer Continental Shelf, before tapping the Strategic Petroleum Reserve. It would not stop the president from tapping the SPR in case of an emergency, such as a hurricane that halts production of crude.

Republicans, who took control of the House this month, have pushed a series of political messaging bills that appeal to conservative voters.

Republican backers of the bill said the Biden administration acted recklessly in selling 180 million barrels from the reserve last year, or 1 million barrels a day for six months, in the biggest release ever. That drawdown and others Biden approved have pushed the level of the SPR to its lowest since 1983.

“The SPR should be used as a tool of ‘last resort,'” said Representative Cathy McMorris Rodgers, the chair of the House Energy and Commerce Committee and co-sponsor of the bill.

“Under this bill, if an administration chooses to use the reserve for non-emergency political purposes, it will first have to plan that an equal amount would be reinstated from American energy resources,” said Rodgers.

The Biden administration has said it sold the oil to counter gasoline prices that had risen to $5.00 a gallon that helped fuel inflation to the highest in decades. Oil prices spiked last year on Russia’s invasion of Ukraine and as the world began to emerge from the pandemic.

U.S. Energy Secretary Jennifer Granholm told reporters at the White House this week that Biden “will not allow the American people to suffer because of the backwards agenda that House Republicans are advancing.”

Strategic Oil

Follow BOE Report
  • Facebook
  • Twitter
  • LinkedIn

Sign up for the BOE Report Daily Digest E-mail

Successfully subscribed

Latest Headlines
  • Week in Review – New well licences, Stock gainers/fallers and most read articles
  • Column: US natgas prices slump after mild winter leaves big surplus
  • Oil falls as US holds off refilling strategic reserve
  • Obsidian shares fall after AER says they triggered seismic events
  • Suncor Energy announces Daniel Romasko to join Board of Directors

Return to Home
Alberta GasMonthly Avg.
CAD/GJ
Market Data by TradingView

    Report Error







    Note: The page you are currently on will be sent with your report. If this report is about a different page, please specify.

    About
    • About BOEReport.com
    • In the News
    • Terms of Use
    • Privacy Policy
    • Editorial Policy
    Resources
    • App
    • Widgets
    • Notifications
    • Daily Digest E-mail
    Get In Touch
    • Advertise
    • Post a Job
    • Contribute
    • Contact
    • Report Error
    Featured In
    • CamTrader
    • Rigger Talk
    Data Partner
    BOE Network
    © 2023 Stack Technologies Ltd.