Bill Overview
Title: Protecting America’s Strategic Petroleum Reserve from China Act
Description: This bill prohibits the sale and export of crude oil from the Strategic Petroleum Reserve (SPR) to China. Specifically, the bill prohibits the Department of Energy (DOE) from selling petroleum products (e.g., crude oil) from the SPR to any entity that is under the ownership, control, or influence of the Chinese Communist Party. Further, DOE must require as a condition of any sale of crude oil from the SPR that the oil not be exported to China.
Sponsors: Rep. McMorris Rodgers, Cathy [R-WA-5]
Target Audience
Population: Individuals potentially affected by changes in global oil market dynamics due to U.S. legislation on SPR
Estimated Size: 330000000
- The Strategic Petroleum Reserve is a key national security asset in the United States and its use affects domestic energy prices and supply stability.
- The bill primarily targets U.S. crude oil transactions with China, aiming to maintain control over strategic petroleum resources.
- The legislation is specifically designed to prevent China's influence or control over the U.S. strategic oil reserves, impacting entities involved in such transactions.
- The main focus of the bill is on U.S. energy security, but its effects could also alter global oil market dynamics.
Reasoning
- The policy is intended to strengthen U.S. energy security by preventing the sale of strategic oil reserves to China. This affects the global oil market, potentially influencing domestic prices and supply stability.
- American citizens rely on stable oil prices for heating, transportation, and production, affecting their wellbeing depending on how the policy alters market dynamics.
- Those working in the oil industry or whose businesses depend on oil prices could see more direct impacts, whether positive or negative, on their economic situation.
- Some individuals may not notice any change; their wellbeing scores might remain stable as the market adjusts.
- The policy might contribute to a broader geopolitical strategy, affecting how people perceive the U.S. role in global markets and their personal sense of security.
Simulated Interviews
Oil Industry Executive (Houston, Texas)
Age: 45 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- This policy could stabilize domestic markets which is generally positive for the industry I work in.
- The direct effect on China may lead to new trade routes or partnerships, impacting our operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Environmental Scientist (Los Angeles, California)
Age: 36 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- This could lead to reduced drilling and more focus on renewable energy, which aligns with my work.
- However, the impact might be too indirect to measure in the short term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 9 | 8 |
Logistics Manager (Chicago, Illinois)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Fuel costs are a significant part of our expenditure, any price alterations due to the policy could affect us.
- It's hard to predict whether prices will rise or fall in the medium term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Financial Analyst (New York, New York)
Age: 50 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 5.0 years
Commonness: 7/20
Statement of Opinion:
- The policy is likely to create an interesting market scenario with China potentially having to buy from different sources.
- This can create research opportunities and might change investment strategies.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 8 |
Retiree (Detroit, Michigan)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 14/20
Statement of Opinion:
- Any instability could affect my retirement funds, but the policy might stabilize the sector.
- Long-term predictions are difficult in oil markets, I'd appreciate more predictable outputs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Small Business Owner (Miami, Florida)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 11/20
Statement of Opinion:
- Fuel costs dominate expenses, and any price stability is welcome.
- I worry about short-term price spikes before stabilization occurs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 6 |
Graduate Student (Boston, Massachusetts)
Age: 25 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 9/20
Statement of Opinion:
- It provides a real-world case study for my research.
- Changes in trade policies can have broad implications, exciting for academic work but uncertain how it influences daily life.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Energy Consultant (Dallas, Texas)
Age: 55 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- Policies like this could directly affect supply chains I advise on.
- Changes in U.S.-China oil trade might create more work in advising clients.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 8 | 8 |
Software Developer (Seattle, Washington)
Age: 30 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- Fuel costs matter little except in larger economic contexts.
- Tech industry often buffers employees from direct market changes, but investments can be impacted.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Freight Truck Driver (Portland, Oregon)
Age: 33 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- Diesel prices have direct effects on my income.
- Hoping for price stability, but worried about immediate market reactions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 5 | 5 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $15000000 (Low: $10000000, High: $20000000)
Year 3: $15000000 (Low: $10000000, High: $20000000)
Year 5: $15000000 (Low: $10000000, High: $20000000)
Year 10: $15000000 (Low: $10000000, High: $20000000)
Year 100: $15000000 (Low: $10000000, High: $20000000)
Key Considerations
- Potential for administrative difficulty in tracking the final destination of U.S. crude oil exports from private entities even after SPR sales.
- May incite diplomatic responses from China or prompt them to seek alternative sources, affecting global oil markets.
- Enhancing U.S. energy security could be seen as a long-term strategic advantage, potentially outweighing short-term administrative costs.
- There are legal considerations on enforcing and verifying the supply chain restrictions imposed by the policy.