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1 1 (February 16, 2023)

handle is hein.crs/govekpp0001 and id is 1 raw text is: Congjressional ____ ~ ~Research Service Strategic Petroleum Reserve Crude Oil Sales: Buyers and Exports February 16, 2023 In January 2023, the U.S. Department of Energy (DOE) concluded the largest emergency drawdown of crude oil from the Strategic Petroleum Reserve (SPR): approximately 180 million barrels directed by the President under authorities provided by Section 161 of the Energy Policy and Conversation Act of 1975 (P.L. 94-163, as amended at 42 U.S.C. @6241). Entities controlled by U.S. and non-U.S. parent organizations purchased crude oil sold under SPR emergency drawdown authority. Additionally, media reports indicated that buyers delivered SPR crude oil to foreign destinations. Purchases by China- affiliated entities, along with reported deliveries to refineries located in China, raised concerns among some Members of Congress about SPR crude oil buyers and destinations. Subsequently, the House of Representatives passed H.R. 22 on January 12, 2023, that would prohibit the sale of SPR petroleum products (e.g., crude oil) to China-affiliated entities and the export of SPR crude oil to China. CRS analysis of successful award reports for SPR crude oil sales during the period of fiscal year (FY) 2017 to present indicates that entities linked to U.S. oil refining operations are generally the largest, by award volume, SPR crude oil buyers. Other entities, many with parent organizations located in foreign countries, also purchase SPR crude oil. SPR crude oil export volumes and destinations are uncertain. Background As required by 42 U.S.C. @6241(e), SPR petroleum products must be sold to the highest qualified bidder following a public notice of sale (NoS) approved by the Secretary of Energy. Oil sales adhere to regulations set forth at 10 C.F.R. Part 625, including SPR Standard Sales Provisions (SSPs), as supplemented and amended in each price-competitive NoS. Bidder qualification criteria typically include (1) registering with the SPR's online Crude Oil Sales Offer system, (2) certifying that the entity does not engage in activities prohibited by export control laws, sanctions, and related regulations, and (3) providing an offer guarantee and a bank-certified Letter of Credit that ensures payment and performance should a contract be awarded. Since FY2017, and as of the date of this Insight, DOE completed 18 SPR crude oil sales resulting in contract awards of approximately 296 million barrels. Generally, these sales fall into one of three categories: mandatory sales, SPR modernization sales, and emergency sales. For additional SPR Congressional Research Service https://crsreports.congress.gov IN12110 CRS INSIGHT Prepared for Members and Committees of Congress

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