SPONSORED:

Lawmakers announce legislation to fund government purchases of oil

Lawmakers announce legislation to fund government purchases of oil
© Thinkstock

A group of lawmakers announced Tuesday that they are introducing legislation that aims to fund a government purchase of oil, boosting an industry that has been hit by reduced demand and international disputes. 

The legislation would give the Energy Department $3 billion with which to purchase oil to be stored in the Strategic Petroleum Reserve (SPR), a move that the Trump administration has also pushed for. 

It is being introduced in the Senate by Sen. John HoevenJohn Henry HoevenDavis: The Hall of Shame for GOP senators who remain silent on Donald Trump Bottom line Bipartisan senators seek funding for pork producers forced to euthanize livestock MORE (R-N.D.) and in the House by Reps. Lizzie Fletcher (D-Texas) and Michael BurgessMichael Clifton BurgessRace heats up for top GOP post on powerful Energy and Commerce Committee Hillicon Valley: House votes to condemn QAnon | Americans worried about foreign election interference | DHS confirms request to tap protester phones House approves measure condemning QAnon, but 17 Republicans vote against it MORE (R-Texas). 

ADVERTISEMENT

The bill has the backing of Republican Sens. John CornynJohn CornynGOP sees path to hold Senate majority Cook moves Texas to 'toss-up' Biden pushes into Trump territory MORE (Texas), Kevin CramerKevin John CramerGOP cool to White House's .6T coronavirus price tag Romney calls first Trump-Biden debate 'an embarrassment' Netflix distances from author's comments about Muslim Uyghurs but defends project MORE (N.D.), Ted CruzRafael (Ted) Edward CruzHarris to travel to Texas Friday after polls show tie between Trump, Biden Cruz wants donors to repay K he loaned to his 2018 campaign Why Biden could actually win Texas MORE (Texas), Lisa MurkowskiLisa Ann MurkowskiAlaska Senate race sees cash surge in final stretch Bitter fight over Barrett fuels calls to nix filibuster, expand court The Hill's Morning Report - Sponsored by Facebook - Justice Barrett joins court; one week until Election Day MORE (Alaska) and Dan SullivanDaniel Scott SullivanThe Hill's Morning Report - Sponsored by Facebook - Smart or senseless for Biden to spend time in Georgia, Iowa? Alaska Senate race sees cash surge in final stretch Biden's oil stance jars Democrats in tough races MORE (Alaska), as well as Reps. Kelly Armstrong (R-N.D.) and Henry Cuellar (D-Texas). 

“Purchasing U.S. oil for the SPR will not only benefit our energy producers, but also taxpayers and our national security. This legislation, along with our efforts to stop the global price war, are part of our work to support our domestic energy producers and provide stability to global energy markets,” Hoeven said in a statement. 

It comes after Congress declined to provide funding in the third coronavirus stimulus package for the purchase of 30 million barrels of oil. The Energy Department at the time withdrew a solicitation to purchase the oil and has since said it will rent space in the SPR to oil producers

There have also been some calls to include funding for an SPR purchase in the next coronavirus stimulus package. 

“Unfortunately, these funds were held hostage during Phase Three negotiations,” Cramer said in a statement. “Congress should play its part and include this funding in Phase Four.”

ADVERTISEMENT

Even though the legislation is supported by some House Democrats, it would likely face an uphill battle in the lower chamber. 

Democrats and environmentalists have repeatedly condemned the possibility of a government purchase of oil as a bailout for an industry that contributes to climate change. 

President TrumpDonald John TrumpBiden campaign slams Facebook after thousands of ads blocked by platform's pre-election blackout Mnuchin says he learned of Pelosi's letter to him about stimulus talks 'in the press' Harris to travel to Texas Friday after polls show tie between Trump, Biden MORE, meanwhile, has endorsed an SPR purchase, saying he wants to “fill it right up to the top.”

As the market is flooded amid a production standoff involving Saudi Arabia and Russia and decreasing demand linked to the coronavirus, Trump has also floated other actions including tariffs on oil imports and decreasing domestic production.