U.S. Sen. Bill Cassidy (R-LA) introduced a bipartisan amendment on Thursday that would allow the secretary of energy to sell Strategic Petroleum Reserve (SPR) quantities of crude oil when prices go up.
The amendment, introduced with Sen. Ed Markey (D-MA), would not only save taxpayer dollars but would also reserve oil reservoirs in the SPR by ending the selloff of oil once the target revenue amount of U.S. $5 billion is achieved.
“This amendment allows the secretary of energy the ability to sell Strategic Petroleum Reserve quantities of crude oil when the price goes up,” Cassidy said. “America is blessed with an abundance of oil. Taxpayers invested in this emergency oil stockpile. If some must be sold, it should be sold at the highest price possible to get the best deal for taxpayers.”
The secretary of energy is currently required to sell the crude oil on a specific schedule that does not take price into account, likely resulting in a loss of revenue to the federal government as a result. Under the Cassidy-Markey amendment, however, flexibility would be given to the secretary of energy to adjust sales based on market prices, preserving supply while maximizing taxpayer benefit.
The amendment is currently pending in the Energy Policy Modernization Act (EPMA), which would be the first update to the nation’s energy policy since 2007. In addition to the Cassidy-Markey amendment, Cassidy has offered several other amendments to the EPMA.