-6

WE ARE ALL TOO QUICK TO FORGET HOW POTENTIALLY UNSTABLE WORLD PETROLEUM SUPPLIES ARE AND HOW QUICKLY CONSUMERS REACT WHEN EVEN THREATENED WITH A SHORTAGE. THE UNPREDICTABILITY

OF THE INTERNATIONAL ENERGY SITUATION AND ITS CRITICAL

THIS

SIGNIFICANCE TO THE UNITED STATES AND OUR ALLIES WAS COGENTLY REVIEWED
TWO WEEKS AGO BY EXPERT WITNESSES BEFORE THIS COMMITTEE.
HEARING IS BUT ONE MORE CHAPTER ON A CONTINUING AND THOROUGH
INQUIRY BY THIS COMMITTEE AND THE CONGRESS ON THE ISSUE OF
ENERGY EMERGENCY PREPAREDNESS. OVER THE PAST 12 MONTHS THE
CONGRESS EXHAUSTED THE LEGISLATIVE AND CONSTITUTIONAL PROCESS
IN AN ATTEMPT TO ENACT S. 1503. WE GAVE THE SUBJECT FULL AND
COMPLETE CONSIDERATION. TODAY WE ARE PROCEEDING FORWARD

IN AN EFFORT TO FASHION AN ALTERNATIVE WHICH WILL BE FULLY
ACCEPTABLE TO THE ADMINISTRATION, THE CONGRESS, AND THE
NATION.

I KNOW THAT THIS SENATOR, SENATOR JACKSON, AND OTHER
MEMBERS OF THIS COMMITTEE ARE DEDICATED COMPLETELY TO THAT
OBJECTIVE. OVER THE LAST THREE WEEKS OUR JOINT STAFF HAS
BEEN BRIEFED BY THE STATE DEPARTMENT, THE DEPARTMENT OF
ENERGY, AND THE FEDERAL EMERGENCY MANAGEMENT ADMINISTRATION.
THE STAFF HAS REVIEWED HUNDREDS OF PAGES OF BACKGROUND
MATERIALS IN PREPARATION FOR OUR HEARING TODAY AND OUR ACTION
ON THIS MEASURE. I WISH TO THANK OUR WITNESSES AND THEIR
COLLEAGUES FOR THEIR COOPERATION AND ASSISTANCE IN THIS EFFORT.

OPENING STATEMENT, SENATOR HENRY M. JACKSON HEARING ON S. 2532, TO EXTEND THE IEA ANTI-TRUST IMMUNITY May 6, 1982

MR. CHAIRMAN, On May 1, 1982, President Reagan opened the World's Fair at Knoxville. Tennessee, with a major energy policy address, an appropriate topic given that the theme of the World's Fair. is, "Energy Turns the World". In this address President Reagan succinctly stated what I believe is the reason we are holding this hearing today:

"Here in America, in this Administration, our national
energy policy dictates that one of Government's chief
energy roles is to guard against sudden interruptions
of energy supplies."

The President went on to say,

"Our Administration is determined to press forward for
real solutions.... We will ensure that our people and
our economy are never again held hostage by the whim of
any country or cartel."

I'm sure all of the Members of this Committee would agree with President Reagan that energy contingency planning is the business of good government. What are "the real solutions" that this

Administration is pursuing?

President Reagan listed three in

his address.

Statement by Senator Jackson
Hearing on S. 2332
May 6, 1982
Page 2

First, he emphasized the importance of the Strategic Petroleum Reserve. I could not agree more. However, as this Committee has heard in several prior hearings, the Administration's proposals for the SPR amount to a dramatic slowdown of the program. My amendment (No. 1354) to S. 2332 would require the Administration to continue the fill rate they achieved in FY 1981 - nearly

300,000 b/d.

The second "real" solution the President offered was greater energy production. However, there are obvious limitations here to what we can do. The latest projections by the Energy Information Administration show that oil imports will be at least 5 million barrels per day from 1985 through 1995 (midprice case).

Third and finally, President Reagan offered the "ultimate" solution in his address at Knoxville:

"But if America is to provide for her energy security,
if we are to free ourselves from foreign pressure, we
must press toward the ultimate solution to our energy
problems: the decontrol of all our energy sources,
including natural gas, and this we shall do."

I hope in this hearing that the Administration witnesses can offer us some additional "real solutions" to those the President offers. I am very much concerned that as we examine in detail this Administration's energy contingency planning we will only

Statement by Senator Jackson

Haering on S. 2332

May 6, 1982

Page 3

discover a policy of "getting Government out' of our way", as the President put it.

Energy contingency planning is a part of national security planning. When the next energy supply disruption hits, the American people will be outraged (and properly so) if they are told that. their Government's contribution to responding to the crisis is to get out of the way.

Certainly, when the Senate sustained the President's veto

of S. 1503 it was done amid assurances from the Administration that this legislation was unnecessary because the President had adequate authority and contingency plans to address the crisis. This hearing will focus on the adequacy of that authority and planning.

96-771 0-82--2

To extend the expiration date of section 252 of the Energy Policy and
Conservation Act.

II

IN THE SENATE OF THE UNITED STATES

APRIL 1 (legislative day, FEBRUARY 22), 1982

Mr. MCCLURE introduced the following bill; which was read twice and referred to the Committee on Energy and Natural Resources

1

A BILL

To extend the expiration date of section 252 of the Energy Policy and Conservation Act.

Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That section 252(j) of the Energy Policy and Conservation 4 Act (42 U.S.C. 6272(j)) is amended by striking "April 1, 5 1982" and inserting in lieu thereof "July 1, 1983".