The SAFER Act of 2023 puts restrictions on who can buy oil from America's Strategic Petroleum Reserve—a massive emergency stockpile of crude oil the government keeps for national security. Right now, the government can sell this oil to almost anyone through auctions, but this bill would change that.

Under this new law, the Department of Energy would be prohibited from selling reserve oil to countries that the U.S. government has identified as having serious religious freedom problems. Additionally, if the U.S. has imposed sanctions or bans on buying oil from certain countries (like Iran or Russia), then state-owned oil companies from other countries can't buy from the reserve either—unless they can prove they haven't purchased oil from those sanctioned countries in the past 15 days. If the Department of Energy discovers that a state-owned company lied about this and actually did buy from a sanctioned country, that company gets banned from future auctions.

Basically, this bill uses the Strategic Petroleum Reserve as a tool to enforce America's foreign policy goals. Instead of just selling to whoever bids the highest price, the government would use these sales to pressure countries on human rights issues and to make sure U.S. sanctions against hostile nations actually work by preventing workarounds through other buyers.

SAFER Act of 2023

Barrasso, John

Secure Auction For Energy Reserves Act of 2023 or the SAFER Act of 2023 This bill limits the sale and exportation of petroleum products (e.g., crude oil) from the Strategic Petroleum Reserve (SPR). Specifically, the bill directs the Department of Energy (DOE) to require, as a condition of auction sales, that the petroleum products not be exported to countries that are designated as countries of particular concern for religious freedom under the International Religious Freedom Act of 1998. In addition, the bill establishes limits on auction sales of petroleum products from the SPR to state-owned entities if DOE determines that, as of the dates of the auctions, there are bans on, or the imposition of sanctions by the United States with respect to, the purchase of crude oil from countries. Under such circumstances, state-owned entities must certify that they have not purchased petroleum products from countries subject to such bans or sanctions later than 15 days after the date on which the ban or sanctions went into effect in order to be able to bid in auctions. If DOE determines state-owned entities participating in the auctions have purchased crude oil from such countries after that time period, then DOE may not sell petroleum products from the SPR to such entities.