Casten: GOP SPR Bill Will Increase Energy Costs, Enriching Speaker McCarthy’s Neighbors
**FOR IMMEDIATE RELEASE**
Contact: Jacob.Vurpillat@mail.house.gov
Casten: GOP SPR Bill Will Increase Energy Costs, Enriching Speaker McCarthy’s Neighbors
Washington, D.C. — Today, U.S. Congressman Sean Casten (IL-06) spoke during debate to urge Speaker McCarthy to vote against H.R. 22, the Protecting America’s Strategic Petroleum Reserve from China Act. As currently written, the legislation does not practically limit United States oil sales to China but does stand to enrich oil producers in places like Bakersfield, California.
“Since the SPR releases, as the majority notes, do reduce oil prices, curtailing our ability to use that tool will drive prices up and transfer wealth from US consumers to US producers in places like Bakersfield, California as they sell higher priced oil to China,” said Rep. Casten. “I cannot imagine that the Speaker intended to enrich his neighbors so that they could profit from Chinese oil sales, so I would encourage him to vote no.”
You can view his remarks by clicking here or on the image below.
The transcript of Rep. Casten’s remarks can be found below.
I rise to address a drafting error in this bill.
The stated goal of HR 22 is to prevent aid to China and lower US energy costs. As written, it's going to have the opposite effect.
Let's run the math. In 2022, the SPR released about 210 million barrels of oil. Most of that was consumed domestically, a small fraction was exported, and a smaller fraction may have gone to China. During the same period domestic oil producers exported more than 10 times that volume. So roughly 100 times the volume that was exported from that portion of our SPR that happens to be above ground.
The failure to include US producers in the export prohibition means that this bill will do nothing to limit Chinese access to American oil. But, since the SPR releases, as the majority notes, do reduce oil prices, curtailing our ability to use that tool will drive prices up and transfer wealth from US consumers to US producers in places like Bakersfield, California as they sell higher priced oil to China.
Now I cannot imagine that the speaker intended to enrich his neighbors so that they could profit from Chinese oil sales, o I would encourage him to vote no. I'd also encourage anyone who seeks to prioritize United States Access to United States energy to oppose until we can make the necessary corrections to this bill.
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