[Congressional Record Volume 142, Number 121 (Friday, September 6, 1996)]
[Senate]
[Pages S10011-S10012]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




               ALTERNATIVES TO MIDDLE EAST OIL DEPENDENCE

  Mr. BYRD. Mr. President, I strongly support the actions of President 
Clinton in responding to the latest round of the politics of aggression 
by the Iraqi dictator, Saddam Hussein. The response by President 
Clinton follows in the wise policy footsteps of President Bush by 
taking strong action, and in acting as a leader of both the West and 
the Middle East in responding to aggression.
  To those who would doubt the necessity of the actions by the 
President, one should pose the question as to what the consequences 
would be in the face of American inaction. First, clearly, no other 
country would take the lead. The signature of the current era is such 
that response to aggression will not be taken up by other powers in the 
absence of American leadership, unfortunately. This was the case in the 
invasion of Kuwait. It was the case in Bosnia when, after several years 
of Western inaction in the face of ethnic atrocities in Bosnia, only 
the United States, only the United States, could bring about a 
credible, effective implementation of peace in that sorry part of 
Europe. While one should have rightfully expected the European nations 
to have led that effort, they did not, and would not, in the absence of 
American leadership. The same is the case today in the Middle East. Our 
friends and allies in Europe and the Middle East will not act in the 
absence of American leadership.
  It is American leadership which is decisive to the peace in these 
regions, and I commend President Clinton for his decisive action. It 
was necessary to weaken the Iraqi leader's ability to intimidate his 
neighbors, and to make it clear that he will pay a price for his 
aggression. As President Clinton stated, our action has changed the 
strategic situation, with Saddam's military capabilities weakened in 
the south of Iraq. If further actions are necessary to ensure the 
protection of our pilots in the no-fly zone, then he will continue to 
have my unstinting support. The President's actions have ensured that 
the coalition which has acted to restrain and discipline Iraq since the 
invasion of Kuwait remains viable and intact.
  It has been stated on many occasions, during the Gulf war and most 
recently by Secretary Perry in expressing the vital interests of the 
United States in the Middle East, that our policy is driven by the 
energy security interests of the United States. Oil, oil, is the 
lifeblood of our industrial base, and both Western Europe and the 
United States, as well as Japan, are far too dependent on the Middle 
East for supplies. We need to get serious about alternative sources of 
energy, clean coal technology, other non-petroleum sources, and the 
overall development of alternative sources of oil.
  A very important, world-class, alternative source of oil exists and 
awaits development in the Caspian Sea area. Following the break-up of 
the Soviet Union, large oil resources are now available for commercial 
development. According to industry sources, some 42 billion barrels of 
proven oil reserves in this region are available for lifting and 
transport to the west.
  The oil pot of the region is estimated by American industry sources 
to be comparable to that of the vast Saudi Arabian fields, a potential 
of some 200 billion barrels of oil, and includes, as well, enormous 
natural gas reserves. Some 2-4 million barrels of oil per day could be 
brought out of the Caspian region, across Turkey by pipeline, and to 
the United States market. These new reserves, in the newly independent 
states of Azerbaijan, Kazakhstan and Turkmenistan, can bring 
substantial, rapid economic development to those nations, as well as to 
Turkey, on their western border. The riches of these reserves can bring 
new stability and stable independence to those new nations. For the 
West, Caspian Sea oil could help to diversify the world oil suppliers, 
stimulate price competition, and bring new security to our supplies.
  Already, aggressive efforts have been underway by Western oil 
companies to develop this resource. In Azerbaijan, a $7.5 billion 
contract with the Azerbaijan International Operating Company, a 
consortium of 12 energy companies, including 5 U.S. companies, could 
produce an estimated three billion barrels of crude oil over the next 
twenty years. In Kazakhstan, there is a $20 billion joint venture 
between an American oil company and the Kazakh government which could 
yield as much as 9 billion barrels of crude oil over the next 40 years.
  Nevertheless, the oil industry cannot by itself accomplish this 
achievement. The region has been in turmoil as a result of war between 
Armenia and Azerbaijan, with large disrupting movements of refugees, 
and there are constant political and other pressures from Russia and 
the Islamic world bearing on the Caspian region. The resulting 
instability requires increased involvement and commitment by the United 
States Government for large scale projects to go forward. The power and 
the influence of the United States Government are necessary to 
accomplish the development of an assured supply of petroleum resources 
to the West. I believe this should be a major priority for the next 
administration. The stakes, both economic and strategic, are enormous.
   Mr. President, Caspian region oil can be transhipped by pipeline 
across Turkey, avoiding politically fragile routes through the Middle 
East or through an unpredictable Russia. Turkey is enthusiastic about 
this prospect and is ready and able to cooperate with America to make 
the development of this major new alternative oil source available to 
the United States. We should not forget, as we so often forget, the 
contribution of Turkey to the Western anti-Saddam alliance. It was 
Turkey which

[[Page S10012]]

shut down the Iraqi pipeline in 1990, at the request of the United 
Nations, after Saddam invaded Kuwait. Turkey has continued to keep this 
pipeline shut down, a great economic loss to Turkey and her people. We 
forget that. Thus, the development of Caspian Sea region oil is an 
opportunity to repay Turkey and help her stabilize her economy at the 
same time that America can develop a new and secure supply of this 
vital resource. Mr. President, I believe the United States must make an 
aggressive, fresh commitment to securing new oil supplies, a commitment 
equal to that we have made in responding to military aggression in the 
Middle East. The two efforts should go hand in hand. They are part of 
the same geostrategic calculation and interest. We need to move ahead 
now to reduce our dependency on vulnerable Middle East oil. A major new 
government-industry partnership to develop the promising Caspian region 
is long overdue and has the potential of a great energy payoff for the 
United States of America.
  Mr. President, I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The legislative clerk proceeded to call the roll.
  Mrs. KASSEBAUM. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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