Rep. Estes Introduces Legislation to Secure Strategic Petroleum Reserve
Washington, June 9, 2022 | Roman Rodriguez (316-262-8992)
WASHINGTON – This week Rep. Ron Estes (R-Kansas) introduced H.R. 7963 –Strategic Petroleum Reserve Replenishment Act – that will ensure the replenishment of the Strategic Petroleum Reserve at a time when the Biden administration has failed to create a reasonable plan to do so.
"Kansans are suffering from crippling gas prices that continue to rise despite the Biden administration's short-sighted action of releasing one million barrels per day from the nation's Strategic Petroleum Reserve," said Rep. Estes. "Instead of helping families now, this do-nothing policy puts our nation at further risk in the future with a depleted supply and no real plan to replenish this vital national security reserve. The Strategic Petroleum Reserve Replenishment Act will restore the SPR, while Biden's proposed formula is both vague and confusing and does not follow the traditional mechanism used by oil traders."
The Strategic Petroleum Reserve Replenishment Act will require the Secretary of Energy to replenish the SPR through mandatory monthly payments once oil drops below $90 a barrel for an average of 100 days straight. These mandatory purchases (to be made on top of regular or congressionally mandated purchases) will be required until the SPR is at its maximum physical capacity. These purchases will equal 3,600,000 million barrels per month (2% of the 180 million barrels to be released, declared by President Biden).