U.S. Sold China Nearly 6 Million Barrels of Oil

The oil comes from the United States oil reserves.

QUICK FACTS:
  • The Biden administration sold over 6 million barrels of oil from the United States Strategic Petroleum Reserve (SPR) to a group associated with the Chinese Communist Party (CCP).
  • The Department of Energy (DOE) issued three crude oil contracts totaling around $464 million between September 2021 and July to Unipec America, the U.S. trading branch of the Chinese state-owned oil company Sinopec.
  • The Chinese-state-owned oil giant has strong connections to both the CCP and first son Hunter Biden.
  • The U.S. Strategic Petroleum Reserve (SPR) would lose about 5.9 million barrels in total if the sale is solidified.
  • On July 20, the most recent contract was unveiled and it consisted of 950,000 barrels sold for around $113.5 million.
CONFLICT OVER CHINA OIL CONTRACTS:
  • The two most recent sales to Unipec were from an emergency drawdown of the U.S. oil stockpile that was started on March 31 by President Joe Biden in an effort to counteract the loss of Russian oil in international markets and contain rising domestic fuel prices.
  • The Unipec contracts have been the subject of conflict among American politicians and pundits, since not only is the oil shortage affecting Americans to a massive degree but the association of Hutner Biden with the company has caused concern over potential conflicts of interest.
  • “Biden is draining our strategic reserves at an unprecedented rate. This is an abuse of the SPR, far beyond its intended purpose. Sending U.S. petroleum reserves to foreign adversaries is wrong, and it undermines our national security,” Rep. Clay Higgins (R-La.) told The Epoch Times in a recent statement.
  • The lawmaker argued that the United States should “unleash American energy production and ensure that our strategic reserves are stocked and able to meet the demands of a national emergency.”
BACKGROUND:
  • Biden administration officials made it clear after news broke that the oil was being sold overseas, that the release of oil from the SPR would always be sold to the highest bidder.
  • As American Faith previously reported, the SPR was created in 1975, after the Arab oil embargo caused a shortage, and is currently at its lowest level in almost 40 years. 
  • The Department of Energy offers detailed guidelines for submitting a request for SPR assistance, for those negatively impacted by a shortage of oil. The site outlines what must be submitted in writing to the Deputy Assistant Secretary for Petroleum Reserves, along with an email and phone number to contact the appropriate offices.