Naval Petroleum Reserve: Opportunities Exist to Enhance Its Value to the
Taxpayer (Testimony, 03/22/95, GAO/T-RCED-95-136).

This testimony focuses on ways to enhance the profitability of the Naval
Petroleum and Oil Shale Reserves.  Regardless of what alternative is
finally adopted for the Naval Petroleum and Oil Shale Reserves, GAO
believes that the goal should be to protect the interests of taxpayers
by getting a reasonable return on these assets.  If a decision is made
to form a government corporation, care should be taken to establish a
financially sound corporate entity with as few government restrictions
on earning profits as is possible.  If a decision is made to sell the
reserves, the government must ensure that it receives fair market value
for them.  Steps can be taken now, such as giving the Energy Department
more flexibility to set the rate of production so as to maximize profits
and marketing Elk Hills oil more aggressively, that would be compatible
with any more fundamental management changes.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-RCED-95-136
     TITLE:  Naval Petroleum Reserve: Opportunities Exist to Enhance Its 
             Value to the Taxpayer
      DATE:  03/22/95
   SUBJECT:  Oil resources
             Energy supplies
             Domestic crude oil
             Petroleum industry
             Fuel sales
             Petroleum refining facilities
             Microeconomic analysis
             Non-government enterprises
             Federal corporations
             Fair market value
IDENTIFIER:  Naval Petroleum Reserve No. 1 (Elk Hills, CA)
             Alaskan North Slope Oil
             
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