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Bipartisan groups in Congress introduce bill to protect strategic petroleum reserve

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From The Center Square

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A bipartisan group of U.S. senators introduced a bill to limit, not prohibit, the sale of crude oil from the U.S. Strategic Petroleum Reserve (SPR).

The Banning SPR Oil Exports to Foreign Adversaries Act was filed in the U.S. Senate by Sens. Ted Cruz, R-Texas, John Fetterman, D-Penn., and Elissa Slotkin, D-Mich. U.S. Reps. Chrissy Houlahan, D-Penn, Don Bacon, R-Nebraska, and Jay Obernolte, R-Calif. filed the bill in the U.S. House.

Instead of repealing provisions of a 10-year-old law to ban the sale or export of SPR oil, the bill seeks to amend the Energy Policy and Conservation Act to prohibit the sale or export of SPR oil to certain countries and entities. It would ban SPR oil from being sold or exported to the People’s Republic of China, North Korea, Russian Federation, Islamic Republic of Iran, any entity owned or controlled by these countries or the Chinese Communist Party.

The SPR is the largest publicly stored emergency supply of petroleum in the world – solely supplied by the U.S. oil industry, led by Texas. The SPR was created after a U.S. energy crisis erupted from a 1973 Organization of the Petroleum Exporting Countries (OPEC) oil embargo and Carter administration inflationary policies.

Underground tanks in Texas and Louisiana have the capacity to hold more than 700 million barrels of petroleum. Instead of passing balanced budgets, in 2015, Congress mandated that the U.S. Department of Energy sell SPR oil to fund its deficit spending.

Since then, the DOE has sold SPR reserves to the highest bidder through competitive public auctions to anyone in the world. During the Biden and Trump administrations, foreign companies with direct ties to American adversaries purchased SPR oil for anti-democratic regimes.

In 2022, in response to energy policies he implemented that directly contributed to high energy costs and inflation, President Joe Biden instructed the DOE to release 1 million barrels of SPR oil a day for 180 days. Chinese companies benefited from the sale, purchasing large quantities. The 2022 release was the largest SPR sale in U.S. history, according to US Energy Information Administration data.

Biden left the SPR with less than 395 million barrels of crude oil. Under the first Trump administration, the SPR exceeded 695 million barrels. Under the Obama administration, it exceeded 726 million barrels.

“The Strategic Petroleum Reserve is meant to protect the U.S. during crises, not supply our adversaries,” Cruz said. “Under President Biden, part of this reserve was sold, benefiting China’s strategic interests. There is strong bipartisan consensus around preventing such a sale from being repeated.”

“The Strategic Petroleum Reserve protects America’s energy, economic, and national security,” Fetterman said. “We must prioritize the safety of America and our allies – we cannot allow our adversaries to purchase oil from our critical energy reserves. This is a commonsense bill with strong bipartisan support.”

Their efforts follow a bipartisan initiative to protect the SPR that was incorporated in the Fiscal 2024 National Defense Authorization Act (NDAA).

Cruz and Houlahan introduced amendments to their respective chamber’s version of the NDAA, which included similar provisions to this bill. Cruz’s amendment received bipartisan support in the Senate. Houlahan’s amendment unanimously passed in the House.

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Canadian Energy Centre

First Nations in Manitoba pushing for LNG exports from Hudson’s Bay

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From the Canadian Energy Centre

By Will Gibson

NeeStaNan project would use port location selected by Canadian government more than 100 years ago

Building a port on Hudson’s Bay to ship natural resources harvested across Western Canada to the world has been a long-held dream of Canadian politicians, starting with Sir Wilfred Laurier.

Since 1931, a small deepwater port has operated at Churchill, Manitoba, primarily shipping grain but more recently expanding handling of critical minerals and fertilizers.

A group of 11 First Nations in Manitoba plans to build an additional industrial terminal nearby at Port Nelson to ship liquefied natural gas (LNG) to Europe and potash to Brazil.

Courtesy NeeStaNan

Robyn Lore, a director with project backer NeeStaNan, which is Cree for “all of us,” said it makes more sense to ship Canadian LNG to Europe from an Arctic port than it does to send Canadian natural gas all the way to the U.S. Gulf Coast to be exported as LNG to the same place – which is happening today.

“There is absolutely a business case for sending our LNG directly to European markets rather than sending our natural gas down to the Gulf Coast and having them liquefy it and ship it over,” Lore said. “It’s in Canada’s interest to do this.”

Over 100 years ago, the Port Nelson location at the south end of Hudson’s Bay on the Nelson River was the first to be considered for a Canadian Arctic port.

In 1912, a Port Nelson project was selected to proceed rather than a port at Churchill, about 280 kilometres north.

The Port Nelson site was earmarked by federal government engineers as the most cost-effective location for a terminal to ship Canadian resources overseas.

Construction started but was marred by building challenges due to violent winter storms that beached supply ships and badly damaged the dredge used to deepen the waters around the port.

By 1918, the project was abandoned.

In the 1920s, Prime Minister William Lyon MacKenzie King chose Churchill as the new location for a port on Hudson’s Bay, where it was built and continues to operate today between late July and early November when it is not iced in.

Lore sees using modern technology at Port Nelson including dredging or extending a floating wharf to overcome the challenges that stopped the project from proceeding more than a century ago.

Port Nelson, Manitoba in 1918. Photo courtesy NeeStaNan

He said natural gas could travel to the terminal through a 1,000-kilometre spur line off TC Energy’s Canadian Mainline by using Manitoba Hydro’s existing right of way.

A second option proposes shipping natural gas through Pembina Pipeline’s Alliance system to Regina, where it could be liquefied and shipped by rail to Port Nelson.

The original rail bed to Port Nelson still exists, and about 150 kilometers of track would have to be laid to reach the proposed site, Lore said.

“Our vision is for a rail line that can handle 150-car trains with loads of 120 tonnes per car running at 80 kilometers per hour. That’s doable on the line from Amery to Port Nelson. It makes the economics work for shippers,” said Lore.

Port Nelson could be used around the year because saltwater ice is easier to break through using modern icebreakers than freshwater ice that impacts Churchill between November and May.

Lore, however, is quick to quell the notion NeeStaNan is competing against the existing port.

“We want our project to proceed on its merits and collaborate with other ports for greater efficiency,” he said.

“It makes sense for Manitoba, and it makes sense for Canada, even more than it did for Laurier more than 100 years ago.”

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Energy

Straits of Mackinac Tunnel for Line 5 Pipeline to get “accelerated review”: US Army Corps of Engineers

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From the Daily Caller News Foundation

By Audrey Streb

The Army Corps of Engineers on Tuesday announced an accelerated review of a Michigan pipeline tunnel under the Straits of Mackinac following President Donald Trump’s declaration of a “national energy emergency” on day one of his second term.

Enbridge’s Line 5 oil pipeline is among 600 projects to receive an emergency designation following Trump’s January executive order declaring a national energy emergency and expediting reviews of pending energy projects. The action instructed the Army Corps to use emergency authority under the Clean Water Act to speed up pipeline construction.

“An energy supply situation which would result in an unacceptable hazard to life, a significant loss of property, or an immediate, unforeseen, and significant economic hardship,” if not acted upon quickly, the public notice reads.

U.S. President Donald Trump holds up a signed executive order as (L-R) U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick and Interior Secretary Doug Burgum look on in the Oval Office of the White House on April 09, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

U.S. President Donald Trump holds up a signed executive order as (L-R) U.S. Treasury Secretary Scott Bessent, Secretary of Commerce Howard Lutnick and Interior Secretary Doug Burgum look on in the Oval Office of the White House on April 09, 2025 in Washington, DC. (Photo by Anna Moneymaker/Getty Images)

“Line 5 is critical energy infrastructure,” Calgary-based Enbridge wrote to the DCNF. The company noted that it submitted its permit applications to state and federal regulators five years ago and described the project as “designed to make a safe pipeline safer while also ensuring the continued safe, secure, and affordable delivery of essential energy to the Great Lakes region.”

Army Corps’ Detroit District did not respond to the DCNF’s request for a copy of the notice or for comment.

The pipeline has been active since 1953 and extends for 645 miles across the state of Michigan, according to the Department of Environment, Great Lakes, and Energy website. Line 5 supplies 65% of the propane needs in Michigan’s Upper Peninsula and 55% of the state’s overall propane demand, according to Enbridge.

Environmental organizations, Native American tribes and Democratic leadership have opposed the project due to concern regarding the risk of an oil spill in the Great Lakes. Enbridge and the Army Corps argue that the tunnel is a necessary addition to the long-standing pipeline. (RELATED: ‘Taking Away Local Control’: Whitmer Signs Massive Green Energy Mandate Into Law)

The project has faced legal trouble and permitting delays that have hindered its expansion. Michigan Democratic Gov. Gretchen Whitmer in 2019 used a legal opinion by Attorney General Dana Nessel to argue that the law that created the authority to approve the project “because its provisions go beyond the scope of what was disclosed in its title.”

The State of Michigan greenlit the project in 2021 and the Michigan Public Service Commission approved placing the new pipeline segment in 2023.

Trump has championed an American energy production revival, stating throughout his 2024 campaign that he wanted to “drill, baby, drill,” in reference to oil drilling on U.S. soil.

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