[Congressional Record Volume 141, Number 2 (Thursday, January 5, 1995)]
[Extensions of Remarks]
[Page E44]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


    LEGISLATION PERMITTING EXPORT OF ALASKA'S NORTH SLOPE CRUDE OIL

                                 ______


                             HON. DON YOUNG

                               of alaska

                    in the house of representatives

                       Wednesday, January 4, 1995
  Mr. YOUNG of Alaska. Mr. Speaker, I am pleased today to rise to join 
my colleagues, Mr. Thomas and Mr. Dooley, in introducing H.R. 70, 
legislation to permit the export of Alaska's North Slope crude oil.
  For too long, the State of Alaska has been denied the opportunity to 
export this valuable resource. I look forward to working with the 
administration to move this bipartisan legislation to create jobs, to 
preserve a vital element of our domestic merchant marine, to raise 
State and Federal revenues, and to spur domestic energy production.
  To put this proposed legislation in perspective, I think it would be 
helpful to explain the origins of current law. The export restrictions 
were first enacted in 1973 during the Arab-Israeli war and the first 
Arab oil boycott. Following the second major oil shock in 1979, the 
restrictions were further tightened, effectively imposing a ban on 
exports. Much has changed since then.
  Over half of our imports now come from the Western Hemisphere and 
Europe. We are less dependent on the Middle East and Africa, but have 
shifted our purchases from Iran, Iraq, and Libya to Saudi Arabia and 
Kuwait. Today, U.S. oil supplies are ample and are more diversified. In 
addition, international sharing agreements are in place and the United 
States has filled a Strategic Petroleum Reserve with 600 million 
barrels of crude oil. In short, our Nation is not as vulnerable to the 
supply threats that motivated Congress to act in the 1970's.
  While we have taken the steps necessary to reduce our vulnerability 
to others, we have not done enough to encourage domestic energy 
production. In fact, production on the North Slope has now entered a 
period of decline. In California, small independent producers have been 
forced to abandon wells or defer further investments. By precluding the 
market from operating normally, the export ban has had the unintended 
effect of discouraging further energy production. This legislation is 
designed to change that situation.
  This proposed legislation would require the use of U.S.-flag vessels. 
Prior proposals would have permitted exports on foreign-flag vessels. 
Those bills never prospered, in part because they were opposed by the 
independent U.S.-flag tanker fleet that was built at considerable 
expense to move the crude oil to market. We have now forged common 
ground with the maritime industry. Our bill will help preserve this 
vital element of our merchant marine.
  In June 1994, the Department of Energy issued a comprehensive report 
that concluded Alaskan oil exports would boost production in Alaska and 
California by 100,000 to 110,000 barrels per day by the end of the 
century. The sooner we change current law, the sooner we can spur 
additional energy production and create jobs on the west coast and in 
Alaska. In fact, Energy Secretary, Hazel O'Leary is reported as saying 
in today's Journal of Commerce, which I would like to submit for the 
Record, ``I have been strongly in favor of lifting that ban since I 
have been back in Government. You will see us carrying the initiative 
and supporting the lifting of the ban.'' I look forward to working with 
Secretary O'Leary and administration toward that end.
  Mr. Speaker, as we enter a new era in the House, we have an 
opportunity to enact bipartisan legislation that will create jobs, help 
preserve our merchant marine, spur energy production, and raise State 
and Federal revenues. I urge my colleagues to work with me to enact 
this vital legislation as quickly as possible to achieve these 
objectives and to enhance our energy security.
              [From the Journal of Commerce, Jan. 4, 1995]

          O'Leary Plans Push to End Export Ban on Alaskan Oil

       Washington.--U.S. Energy Secretary Hazel O'Leary said she 
     plans to push this year to repeal the ban on exports of 
     Alaskan North Slope oil.
       Mrs. O'Leary also said she believed a broad coalition 
     supporting the ban's repeal was forming late in the last 
     congressional session.
       ``I have been strongly in favor of lifting that ban since I 
     have been back in government,'' Mrs. O'Leary said. ``You will 
     see us carrying the initiative and supporting the lifting of 
     the ban'' in 1995, she said.
       Deputy Energy Secretary Bill White has said the department 
     will work on legislation to lift the 20-year-old law that 
     keeps Alaskan North Slope oil from Pacific Rim markets.
       Efforts by Alaska's congressional delegation to repeal the 
     ban died late in the last session.
       President Clinton also has indicated he supports the 
     concept of repealing the ban, but that the administration was 
     weighing the issue.
       According to an Energy Department study, allowing the oil 
     exports would generate jobs and revenue.
       But some West Coast lawmakers opposed lifting the ban, 
     partly fearing higher gasoline prices as less Alaskan oil 
     would move to domestic ports.
       Labor groups also have opposed lifting the ban because the 
     oil would no longer be forced onto U.S.-flagged vessels, but 
     could be carried on international vessels to overseas ports.
       There have been proposals to require that the exported oil 
     still be carried on U.S.-flagged vessels, but that could 
     raise international trade problems, U.S. officials have said.
     

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