OVERSIGHT-MANDATORY PETROLEUM
ALLOCATION PROGRAMS

HEARINGS

BEFORE THE

COMMITTEE ON

INTERIOR AND INSULAR AFFAIRS

UNITED STATES SENATE

Pursuant to S. Res. 45

A National Fuels and Energy Policy Study

NINETY-THIRD CONGRESS

SECOND SESSION

ON

PUBLIC LAW 93-159, THE EMERGENCY PETROLEUM

ALLOCATION ACT OF 1973

FEBRUARY 27, 1974

Serial No. 93-35 (92-70)

PART 1

SENATE RESOLUTION 45

NATIONAL FUELS AND ENERGY POLICY STUDY

This publication is a background document for the National Fuels and Energy

Policy Study authorized by Senate Resolution 45, introduced by Senators

Jennings Randolph and Henry M. Jackson on February 4, 1971, and considered,

amended, and agreed to by the Senate on May 3, 1971.

The resolution authorized the Senate Interior and Insular Affairs Committee,

and ex-officio members of the Committees on Commerce and on Public Works

and the Joint Committee on Atomic Energy, to make a full and complete inves-

tigation and study of National Fuels and Energy Policies.

Subsequently, on March 1, 1974, in the furtherance of the purposes of Senate

Resolution 45 (92d Congress), the Senate approved the addition of ex-officio

members from the Committees on Finance, on Foreign Relations, on Government

Operations, and on Labor and Public Welfare, also.

COMMITTEE ON INTERIOR AND INSULAR AFFAIRS

HENRY M. JACKSON, Washington, Chairman

EX-OFFICIO MEMBERS FOR NATIONAL FUELS AND ENERGY POLICY STUDY

GRENVILLE GARSIDE, Special Counsel and Study Coordinator

RICHARD D. GRUNDY, Executive Secretary and Professional Staff

DANIEL A. DREYFUS, Professional Staff and Engineering Consultant

ARLON R. TUSSING, Chief Economist

GREGG ERICKSON, Staff Economist

DAVID STANG, Deputy Director for Minority

Bartlett, Hon. Dewey F., a U.S. Senator from the State of Oklahoma

33

Buckley, Hon. James L., a U.S. Senator from the State of New York----
Card, Annon M., senior vice president, Texaco, Inc., in charge of strate-

28

gie planning___

85

Dole, Hon. Robert, a U.S. Senator from the State of Kansas..

75

Fannin, Hon. Paul J., a U.S. Senator from the State of Arizona...

12, 15

Hansen, Hon. Clifford P., a U.S Senator from the State of Wyoming_

Jackson, Hon. Henry M., a U.S. Senator from the State of Washington____
Johnson, Z. Q., executive vice president, Gulf Oil Corp.; accompanied by

25

1

J. L. Schweizer and W. B. Edwards___

125

Johnston, Hon. J. Bennett, Jr., a U.S. Senator from the State of Louisiana_

Magnuson, Hon. Warren G., a U.S. Senator from the State of Washington 21, 23

McClure, Hon. James A., a U.S. Senator from the State of Idaho---------

Metzenbaum, Hon. Howard M., a U.S. Senator from the State of Ohio----

Sawhill, John C., Deputy Administrator, Federal Energy Office, and Wil-

liam N. Walker, general counsel, Federal Energy Office-----.

27

Card. Annon M., Texaco, Inc., New York, N.Y., letter dated March 25, 1974-
ADDITIONAL INFORMATION

101

East coast gas crisis worsens, from the Washington Post, February 27,

1974, by Paul Hodge and Leon Dash____

52

Imports Decline-Sharing of Crude Oil Has an Ironic Result, from the
Washington Post, February 23, 1974, by Thomas O'Toole---

Postal Competition, from the Richmond Times Dispatch, February 15,

1974, by John Chamberlain____.

12

123

Report of the visit of Senators Paul Fannin, Clifford P. Hansen, and
Dewey F. Bartlett to Iran, Kuwait, Abu Dhabi, Saudi Arabia, Egypt,
and Algeria____

17

Simon Still Sees Summer Shortage, from the Washington Post, Febru-
ary 27, 1974, by Thomas O'Toole---

51

APPENDIXES

APPENDIX I

Mandatory petroleum allocation summary-February 28, 1974----- 135

APPENDIX II

Collins, William R., president, William Collins, Inc., Fargo, N. Dak., letter
dated March 8, 1974

Gasoline: 59.9 cents, no lines, from the Wall Street Journal----------

Glenn, W. E., president, Continental Oil Co., Billings, Mont., letter dated

March 4, 1974----

196

189

197