As America continues to face record-high national averages for a gallon of gasoline, reports recently emerged revealing the amount of oil from the U.S. Strategic Petroleum Reserve that has been sold to China.
According to the Daily Caller, since July 2021, under the Biden administration’s orders, the U.S. government has sold some 6 million barrels of SPR oil to a Chinese state-run energy firm.
Specifically, 5.9 million barrels of America’s SPR oil reserves were won at auction by a company called Unipec, which happens to be, the Daily Caller reports, “the trading division of the Chinese state-owned Sinopec.”
The oil was reportedly auctioned off to offset some of the contributors to the high price of energy, including Russia’s invasion of Ukraine, and as many experts have stated, President Joe Biden’s energy policies.
The Daily Caller noted:
The DOE sold four million barrels to Unipec in the fall of 2021, almost six months before Russia’s invasion of Ukraine, making over $252 million from the sale, according to the FY22 Emergency Drawdown No. 2 Successful Awards Report.
President Biden continues to take criticism for selling off America’s oil reserves, especially when the sales, well-intended or not, are not having much of an effect at the gas pump, where consumers are still bleeding money.
“Critically, the American people deserve answers as to how exactly the Department justified sending oil from the SPR to China. DOE’s recent transfer of nearly one million barrels of oil to UNIPEC is just one concerning example,” Sen. Hawley continued.
— Henry Rodgers (@henryrodgersdc) July 13, 2022
“The Strategic Petroleum Reserve never really was a substitute for that and now to hear that this oil is going to China is problematic because it undercuts their rationale even more,” said Ben Lieberman, a senior fellow at the Competitive Enterprise Institute.
He added: “Biden’s policy just shows that he’s not putting American consumers and the American economy first or second or even third.”
“The idea of tapping into the Strategic Petroleum Reserve rather than maxing out on American drilling was foolish from the start, it’s like taking out a loan instead of going out and earning more money.”
While gas prices have fallen, on average, roughly .30 cents over the past several weeks, The Washington Post reported that prices could once again surge this fall, ahead of the November midterm elections.
WaPo noted the cause of a potential spike:
The price concerns are tied to the timeline for stricter sanctions on Russia that will further choke the global oil supply. J.P. Morgan has warned that in a worst-case scenario — in which Russia retaliates by shutting down its supply altogether — the price of oil could jump to $380 per barrel, more than triple what it is today.