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Energy

House votes to block China from buying oil from US reserves

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5 minute read

By Matthew Daly in Washington

WASHINGTON (AP) — The Republican-controlled House on Thursday voted to block oil from the country’s emergency stockpile from going to China.

The bill, one of the first introduced by the new GOP majority, would prohibit the Energy Department from selling oil from the Strategic Petroleum Reserve to companies owned or influenced by the Chinese Communist Party. It passed easily, 331-97, with 113 Democrats joining unanimous Republicans in support.

Rep. Cathy McMorris, R-Wash., the new head of the House Energy and Commerce Committee, said the bill would help end what she called President Joe Biden’s “abuse of our strategic reserves.”

Biden withdrew 180 million barrels from the strategic reserve last year in a bid to halt rising gasoline prices amid production cuts by OPEC and a ban on Russian oil imports following Moscow’s invasion of Ukraine. The monthslong sales brought the stockpile to its lowest level since the 1980s. The administration said last month it will start to replenish the reserve now that oil prices have gone down.

McMorris Rodgers accused Biden of using the reserve to “cover up his failed policies” that she said are driving up energy prices and inflation.

“Draining our strategic reserves for political purposes and selling it to China is a significant threat to our national and energy security. This must be stopped,” McMorris Rodgers said.

The measure is the first in a series of GOP proposals aimed at “unleashing American energy production,” McMorris Rodgers said as Republicans seek to boost U.S. production of oil, natural gas and other fossil fuels.

“There’s more to come. This is just the beginning,” she said.

Democrats, including former Energy and Commerce Chairman Frank Pallone of New Jersey, said Republicans were trying to fix a problem of their own making. China is among numerous potential adversaries that buy U.S. oil after the GOP-led Congress lifted an export ban in 2015.

“If Republicans were serious about addressing this issue, they would have brought forward a bill that banned all oil exports to China,” Pallone said, adding that sales from the strategic reserve amounted to about 2% of U.S. oil sold to China last year.

“If we truly want to address China using American oil to build its reserves, let’s actually take a serious look at that, rather than skirt around the issue because Republicans are scared of Big Oil’s wrath,” Pallone said.

The current process allows for crude oil sales from the strategic reserve to companies that make the highest offer, which includes U.S. subsidiaries of foreign oil companies, and they could then export that crude oil overseas. Last year, millions of barrels of oil from the U.S. reserves wound up being exported to China, including to a subsidiary of China’s state-run oil company, Sinopec.

The Energy Department said in a statement Thursday that Biden “rightly authorized emergency use” of the strategic reserve, also known as the SPR, to address supply disruptions and “provide relief to American families and refineries when needed the most.”

The Treasury Department estimates that release of oil from the emergency stockpile lowered prices at the pump by up to 40 cents per gallon. Gasoline prices, meanwhile, averaged about $3.27 per gallon on Thursday, down from just over $5 per gallon at their peak in June, according to the AAA auto club.

“By law we are required to select the highest value bid to ensure the best return for taxpayers, and since 2017 the vast majority of oil sold from the reserve is sold to American entities,” the Energy Department said. Over the last five years, less than 3% of oil from the strategic reserve has gone to China, officials said.

The House bill now goes to the Democratic-controlled Senate. Sen. John Barrasso, R-Wyo., has introduced a similar measure.

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Economy

Trump declares national energy emergency

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From The Center Square

By 

President Donald Trump signed an executive order Monday night declaring a national energy emergency.

Trump announced the order earlier in the day during his Inauguration Speech.

“We will drill baby drill,” Trump said. “We will bring prices down, fill our strategic reserves up again right to the top, and export American energy all over the world. We will be a rich nation again and it is that liquid gold under our feet that will help to do it.”

The order states that high energy prices are an “active threat to the American people.”

“The policies of the previous administration have driven our Nation into a national emergency, where a precariously inadequate and intermittent energy supply, and an increasingly unreliable grid, require swift and decisive action,” the order said. “In light of these findings, I hereby declare a national emergency.”

To solve high prices and remedy the “numerous problems” with America’s energy infrastructure, the order stated that the delivery of energy infrastructure must be “expedited” and the nation’s energy supply facilitated “to the fullest extent possible.”

This was one of many executive orders the president signed on his first day in office.

In another order signed Monday night, Trump declared it was time to unleash American energy.

“In recent years, burdensome and ideologically motivated regulations have impeded the development of these resources, limited the generation of reliable and affordable electricity, reduced job creation, and inflicted high energy costs upon our citizens,” the order said. “It is thus in the national interest to unleash America’s affordable and reliable energy and natural resources.”

All this will be done through encouraging energy exploration, the elimination the electric vehicle mandates, and safeguarding “the American people’s freedom to choose from a variety of goods and appliances.”

The order promises these measures will “restore American prosperity,” “establish our position as the leading producer,” and “protect the United States’s economic and national security and military preparedness.”

In an earlier signing of executive orders in front of a crowd of supporters at the Capital One Arena, Trump signed an executive order withdrawing the United States from the Paris Climate Accords.

Elyse Apel is an apprentice reporter with The Center Square, covering Georgia and North Carolina. She is a 2024 graduate of Hillsdale College.

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Daily Caller

Trump Takes Firm Stand, Exits Paris Agreement Again

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From the Daily Caller News Foundation

By Mariane Angela

President Donald Trump issued an executive order Monday to remove the United States from the Paris Agreement.

The United States joins Iran, Libya, and Yemen as countries not part of the Paris Agreement, which seeks to limit global warming, the New York Times reported. Trump had previously pulled out of the agreement during his first term, only to see his successor, former president Joe Biden, re-enter it in 2021 after taking office.

This decision aims to increase fossil fuel production and reduce investment in clean energy technologies like electric vehicles and wind turbines, the outlet stated. Additionally, Trump notified the United Nations, which manages the Paris Agreement, of the U.S.’s withdrawal with a signed letter, setting the official exit to occur one year after its submission.

Trump has said in the past that the U.S. involvement in the Paris agreement harms America’s economic competitiveness and would not make a significant impact on the climate. He also said previously that the agreement was poorly negotiated and did not put American workers first.

The Biden administration implemented new emissions goals as part of its efforts to solidify its climate strategy. The Trump administration plans to deregulate the energy sector and roll back funding from Biden’s key climate initiatives. Since Nov. 5, members of Biden administration have distributed $1.6 billion in “environmental justice” grants, secured significant loans for green energy firms, empowered  California regulators to influence the national auto market, and published a detailed analysis on the effects of liquefied natural gas exports, potentially hindering Trump’s efforts to expand them.

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