Message to the Congress Reporting on Petroleum Imports and Energy Security
the Congress of the
Pursuant to Section 232 of the Trade Expansion Act of 1962, as amended (19 U.S.C. 1862(c)(2)), I am reporting my determination with respect to the Department of Commerce's investigation into the effect of petroleum imports on the national security.
Department's investigation was in response to a petition filed in December 1987
by the National Energy Security Committee. The Secretary of Commerce has
concluded that there has been a substantial improvement in
However, taking into account the Administration's detailed program to improve energy security, transmitted to the Congress on May 6, 1987, the Secretary has recommended that no action to adjust imports under Section 232, such as an oil import fee, be taken because such action would not be cost effective and, in the long run, would impair rather than enhance national security.
I approve the Secretary of Commerce's finding, and based on his recommendation, I determine that no action to adjust oil imports under Section 232 need be taken.
Administration has done a great deal to build the Nation's foundation for
long-term energy security and to strengthen the domestic oil industry. We have
decontrolled oil prices and eliminated allocation controls. The Strategic
Petroleum Reserve (SPR) contains over 555 million barrels, compared to 108
million barrels 8 years ago.
these improvements, important energy security concerns remain. While lower oil
prices have provided substantial benefits to the
was heartened by congressional action on some of my
However, a number of my recommendations to improve the Nation's energy security have not been acted upon. I once again urge the Congress to take the following actions:
(1) Enact comprehensive legislation to deregulate wellhead prices of natural gas and to mandate open access to natural gas pipelines.
Permit environmentally sound oil exploration and development of the Arctic
National Wildlife Refuge (ANWR) in
(3) Increase the availability of the percentage depletion allowance used in calculation of independent oil and gas producers' income taxes by repealing the ``transfer rule'' and increasing the net income limitation to 100 percent.
(4) Continue to fill the SPR to reach the goal of 750 million barrels. The Naval Petroleum Reserves at Elk Hills, California, and Teapot Dome, Wyoming, should be sold as a means to accelerate the SPR fill rate and to pay for a new 10 million barrel Defense Petroleum Inventory.
(5) Enact a comprehensive reform of nuclear power licensing to streamline the process and reduce costs while enhancing public safety.
the nature of the international oil market, the
The White House,