[Weekly Compilation of Presidential Documents Volume 32, Number 18 (Monday, May 6, 1996)]
[Pages 747-748]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Statement on Exports of Alaska North Slope Crude Oil

April 28, 1996

    Today I am taking action that will allow, for the first time, 
exports of Alaska North Slope (ANS) crude oil. Permitting this oil to 
move freely in international commerce will contribute to economic 
growth, reduce dependence on imported oil, and create new jobs for 
American workers. It will not adversely affect oil supplies or gasoline 
prices on the West Coast, in Hawaii, or in the rest of the Nation.
    I am also announcing additional measures to address safety concerns 
relating to oil tankers and other commercial vessels in Puget Sound-area 
waters in Washington State.
    I want to express my appreciation to Congress, led by the Alaska 
congressional delegation, for its bipartisan support of the legislation 
that has made exports possible. In addition, I want to express my 
appreciation to Alaska Governor Tony Knowles. It has been a pleasure to 
work with him to make ANS exports a reality.
    After careful consideration, I have determined that ending the 23-
year ban against exporting ANS oil is in the national interest, subject 
to four important conditions:
1.          Tankers exporting ANS crude oil must remain outside of the 
            200-mile Exclusive Economic Zone. This will ensure that 
            tankers in the ANS export trade remain far from the U.S. 
            coastline and the environmentally sensitive areas along the 
            Aleutian Islands.
2.          ANS export tankers must be equipped with a satellite 
            communications system to permit the Coast Guard to monitor 
            the tankers' positions.
3.          ANS export tankers must be inspected annually, in accordance 
            with U.S. Coast Guard policies and procedures. This 
            condition will ensure that the tankers are kept in safe 
            working order.
4.          ANS export tankers will be required to exchange their 
            ballast water in deep ocean water prior to entering Alaska's 
            Prince William Sound. Ship logs will record ballast 
            exchanges and will be checked periodically by the Coast 
            Guard. This condition will help prevent the introduction 
            into Alaskan fisheries of nonindigenous, aquatic nuisance 
            species.
    These requirements, which will be applied to ANS oil exports as 
export license conditions, will protect Alaska's unique environment and 
abundant natural resources. A fifth requirement--that exports be carried 
in U.S.-flag tankers, crewed by U.S. merchant seamen--is already in 
place under PL 104-58, the oil export legislation I supported and signed 
into law last November. That law is

[[Page 748]]

also the source of the authority under which I am imposing the four 
additional export conditions.
    By removing the ban that has prevented ANS oil from moving freely in 
international markets for more than two decades, we will be stimulating 
increased domestic oil production in Alaska and California, creating new 
jobs in the oil industry, and preserving jobs for America's merchant 
seamen.
    Over the last several months, my administration has conducted an 
extensive interagency review of the environmental, economic, and energy 
aspects of lifting the ban. Led by the National Economic Council and the 
Council on Environmental Quality, the interagency review team confirmed 
the Department of Energy's 1994 findings that lifting the export ban 
would provide important benefits to the economy. Permitting exports will 
generate up to 25,000 more jobs, particularly for American workers in 
California and Alaska, but also in States that produce oil industry 
supplies and equipment. Additional oil production of about 100,000 
barrels per day is expected, according to DOE projections, and Alaska, 
California, and the Federal Government will also benefit from up to $2 
billion in additional Federal, State, and local royalty and tax 
payments.
    The review group identified an additional benefit of exports. It 
determined that overall tanker movements along the West Coast will 
decline. Because of the ban, the ANS oil that exceeds the West Coast's 
needs currently must be shipped down the West Coast anyway. Without the 
ban, that ``surplus'' oil--which has been suppressing Alaska and 
California producer prices below U.S. market levels--can now be 
exported.
    While the review group found no likelihood of adverse impacts from 
ANS exports on Washington State's consumers, refiners, or environment, 
concern is clearly rising in that State about the increasing volume of 
vessel traffic projected to occur as a result of other factors. For 
example, the growing international trade between Washington State and 
Pacific Rim nations, while clearly a boon to the State's economy, is 
prompting debate over the adequacy of current vessel safety procedures 
and resources.
    I share those concerns. Accordingly, I am requesting the Coast Guard 
to prepare, by no later than 120 days from today, a status report on its 
plan for a private-sector vessel assistance system. I am also asking the 
Coast Guard to accelerate completion of the plan, which will be 
submitted to Congress, and to offer its assistance to any serious 
private-sector efforts to improve vessel safety. The plan is required 
under a provision of the ANS export law authored by Senator Patty 
Murray, who has been at the forefront of efforts to safeguard her 
State's waterways. To further support those efforts, I am asking the 
Secretary of Transportation to determine, by the end of this year, the 
need for additional, cost-effective measures to protect the marine 
environment, and to prevent shipping accidents, in Washington State.
    Finally, I wish to emphasize that in permitting ANS oil to be 
exported, I am in no way diminishing my authority under various laws to 
impose new export restrictions if necessary to respond to a national 
emergency, or to deal with severe oil supply shortages.