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PETROLEUM PRODUCT IMPORTS AND ENERGY RELATED TAX REFORM PROPOSALS

HEARINGS

BEFORE. A.

SUBCOMMITTEE OF THE

COMMITTEE ON
GOVERNMENT OPERATIONS
HOUSE OF REPRESENTATIVES

NINETY-NINTH CONGRESS
FIRST SESSION

APRIL 1 AND 2, 1985

Printed for the use of the committee on Government Operations

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COMMITTEE ON GOVERNMENT OPERATIONS

JACK BROOKS, Texas, Chairman DON FUQUA, Florida

FRANK HORTON, New York JOHN CONYERS, JR., Michigan

THOMAS N. KINDNESS, Ohio CARDISS COLLINS, Ilinois

ROBERT S. WALKER, Pennsylvania GLENN ENGLISH, Oklahoma

WILLIAM F. CLINGER, JR., Pennsylvania HENRY A. WAXMAN, California

ALFRED A. (AL) MOCANDLESS, California TED WEISS, New York

LARRY E. CRAIG, Idaho MIKE SYNAR, Oklahoma

HOWARD C. NIELSON, Utah STEPHEN L. NEAL, North Carolina

JIM SAXTON, New Jersey DOUG BARNARD, JR., Georgia

PATRICK L. SWINDALL, Georgia BARNEY FRANK, Massachusetts

THOMAS D. (TOM) DELAY, Texas
TOM LANTOS, California

DAVID S. MONSON, Utah
ROBERT E. WISE, JR., West Virginia JOSEPH J. DIOGUARDI, NEW YORK
BARBARA BOXER, California

JOHN G. ROWLAND, Connecticut
SANDER M. LEVIN, Michigan

RICHARD K. ARMEY, Texas MAJOR R. OWENS, New York

JIM LIGHTFOOT, Iowa
EDOLPHUS TOWNS, New York

JOHN R. MILLER, Washington
JOHN M. SPRATT, JR., South Carolina
JOE KOLTER, Pennsylvania
BEN ERDREICH, Alabama
GERALD D. KLECZKA, Wisconsin
ALBERT G. BUSTAMANTE, Texas
MATTHEW G. MARTINEZ, California

WILLIAM M. JONES, General Counsel

JOHN E. MOORE, Staff Administrator
STEPHEN M. DANIELS, Minority Staff Director and Counsel

ENVIRONMENT, ENERGY, AND NATURAL RESOURCES SUBCOMMITTEE

MIKE SYNAR, Oklahoma, Chairman ROBERT E. WISE, JR., West Virginia

WILLIAM F. CLINGER, JR., Pennsylvania BARBARA BOXER, California

THOMAS D. (TOM) DELAY, Texas JOE KOLTER, Pennsylvania

RICHARD K. ARMEY, Texas EDOLPHUS TOWNS, New York

JOHN R. MILLER, Washington ALBERT G. BUSTAMANTE, Texas

JACK BROOKS, Texas

Ex OFFICIO

FRANK HORTON, New York
SANDRA ZEUNE HARRIS, Staff Director
LYNN STEVENS, Professional Staff Member

Heidi I. IRGENS, Staff Assistant
JAMES TAPPER, Minority Professional Staff

(II)

85-602734

CONTENTS

Page
Hearings held on:
April 1.

1
April 2

317

Statement of:

Boggs, Danny J., Deputy Secretary, Department of Energy.

10

Cooper, Dr. Mark N., director of energy, Consumer Federation of

America

176

Gravelle, Dr. Jane G., specialist in industry analysis and finance, Eco

nomics Division, Congressional Research Service...

504

Hammons, Sam, Oklahoma representative of the Interstate Oil Compact

Commission.......

534

Jones, Jeffrey A., Deputy Director, Energy Programs, Office of the Secre

tary of Defense, Department of Defense ....

53

Kelley, Michael T., Deputy Assistant Secretary for Basic Industries,

International Trade Administration, Department of Commerce, accom-

panied by Doug Perry, Office of Energy

338

Lichtblau, John H., president, Petroleum Industry Research Foundation,

Inc.....

157

Lodwick, Seeley, Commissioner, U.S. International Trade Commission,

accompanied by John J. Gersic, Chief, Energy and Chemicals Division ... 328

Peach, J. Dexter, Director, Resources, Community and Economic Develop-

ment, U.S. General Accounting Office, accompanied by F. Kevin

Boland, Senior Associate Director, and Clifford Gardner, Group Direc-

tor..

83

Perry, Richard C., consultant, appearing on behalf of the Petrochemical

Energy Group...

486

Reinstein, R.A., Director, Energy and Chemical Trade Policy, Office of

the U.S. Trade Representative...

319

Schuler, Dr. G. Henry M., Dewey F. Bartlett Chair in Energy Security,

Center for Strategic and International Studies, Georgetown University..

Steuart, Leonard P., II, president, Steuart Petroleum Co...

454

Stratman, Joseph L., senior vice president, Texas City Refining, Inc.,

accompanied by George Jandacek, vice president, Crown Central Petro-

leum Co....

409

Synar, Hon. Mike, a Representative in Congress from the State of Okla-

homa, and chairman, Environment, Energy, and Natural Resources

Subcommittee: Opening statement ......

1

Tell, William K., Jr., senior vice president, Texaco, Inc., accompanied by

James A. McNamara, director, government relations

362

Unsell, Lloyd N., executive vice president, Independent Petroleum Asso-

ciation of America.

515

Van Arsdall, R. Thomas, vice president, agricultural inputs and services,

National Council of Farmer Cooperatives..

436

Letters, statements, etc., submitted for the record by:

Armey, Hon. Richard K., a Representative in Congress from the State of

Texas: Introductory statement..

4-5

Boggs, Danny J., Deputy Secretary, Department of Energy:

Charts demonstrating problems in past forecasting.

49-52

Cost of SPR expansions.

42-43

Examining reporting of gasoline and light end blending components

imports in EIA monthly surveys

48

Net stock-adjusted imports

32-33

Prepared statement...

14-29

Product import numbers discrepancies ..

47

xooc as

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