PolicyBrief
H.R. 942
119th CongressFeb 4th 2025
Banning SPR Oil Exports to Foreign Adversaries Act
IN COMMITTEE

The "Banning SPR Oil Exports to Foreign Adversaries Act" prohibits exporting or selling petroleum from the Strategic Petroleum Reserve to China, North Korea, Russia, Iran, or entities controlled by them, with a national security waiver option.

Chrissy Houlahan
D

Chrissy Houlahan

Representative

PA-6

LEGISLATION

Strategic Petroleum Reserve Exports Banned to China, Russia, and Other Adversaries: New Law Aims to Protect U.S. Energy Security

The "Banning Strategic Petroleum Reserve Oil Exports to Foreign Adversaries Act" directly prohibits the sale of oil from the U.S. Strategic Petroleum Reserve (SPR) to China, North Korea, Russia, Iran, or any entity they control. The main goal is to prevent these countries from accessing America's emergency oil supply, which is meant to be a safety net during major disruptions.

No More SPR Sales to Adversaries

This bill, straight up, bans selling oil from the nation's emergency stash to a specific list of countries. The Secretary of Energy can no longer approve deals sending SPR crude to China, Russia, North Korea, Iran, or any company owned or controlled by them or the Chinese Communist Party (SEC. 2). This is about keeping our emergency oil for our own use, not for countries that might not have our best interests at heart.

Real-World Impact: Protecting Our Reserves

Imagine the SPR as a giant gas can tucked away in your garage for emergencies. This law says we're not sharing that gas with specific neighbors – the ones who've been less than friendly. For everyday Americans, this means our national energy reserves are better protected. Whether you're a delivery driver, a construction worker relying on diesel, or an office worker commuting daily, a secure SPR helps ensure a more stable energy supply during crises. It also potentially strengthens the position of domestic energy producers by limiting foreign access to this strategic resource.

The National Security Card

There's one big exception: the Secretary of Energy can bypass the ban if it's deemed crucial for U.S. national security (SEC. 2). This waiver is the 'in case of emergency, break glass' option. While it adds flexibility, it also means the effectiveness of the ban hinges on how this power is used. The bill requires the Secretary to create a rule for implementing this prohibition within 60 days of the law's enactment (SEC. 2), which should provide more clarity.

Potential Challenges

It is important to know that the "national security interest" reason for selling oil to these countries could be used to get around the ban for political or money-related reasons. Also, figuring out exactly which companies are "owned or controlled" by these countries could be tricky and might create ways to cheat the system.

Connecting the Dots

This move builds on the existing Energy Policy and Conservation Act, which governs the SPR. By adding this export ban, the U.S. is tightening control over its strategic oil assets, aiming to boost energy security and send a clear geopolitical message. It's like upgrading the locks on your house – you're making it harder for unwanted guests to get in.