Congressman Ricehouse questions CFIUS on foreign control risks in Texas energy sector

In a recent meeting of the U.S. House Committee on Financial Services, the spotlight shone brightly on Texas, a state pivotal to the nation’s energy security. As representatives gathered, the conversation turned to the critical role Texas plays in the U.S. energy landscape, from its vast refining capacity to its extensive pipeline systems and electric grid infrastructure. These assets are not only vital for Texas but are essential for the entire country’s energy independence.

Concerns were raised about foreign-backed firms attempting to acquire assets or real estate near these crucial facilities. The potential risks posed by adversaries seeking strategic footholds in the energy sector were underscored, with one congressman sharing firsthand observations from his district. “As our adversaries become more sophisticated in exploiting economic access points, we need to ensure our investment screening tools are capable of identifying and acting on those risks early,” he stated, emphasizing the importance of safeguarding infrastructure that supports national defense and economic resilience.

In response, a representative from the Committee on Foreign Investment in the United States (CFIUS) acknowledged the growing risks associated with foreign investments in the energy sector. He noted that energy security has been a significant focus for the committee, with the Department of Energy leading numerous transactions to assess potential vulnerabilities. “We are looking for problematic investors and evaluating whether any transaction could introduce risks to energy production or critical infrastructure,” he explained.

The discussions highlighted a pressing need for robust investment screening mechanisms to protect against foreign threats, ensuring that the nation’s energy resources remain secure and resilient. As the meeting concluded, it was clear that the path forward would require vigilance and proactive measures to safeguard the lifeblood of America’s energy independence.