[Congressional Record Volume 142, Number 127 (Monday, September 16, 1996)]
[Senate]
[Pages S10583-S10584]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                  AMERICA'S DEPENDENCE ON MIDEAST OIL

  Mr. MURKOWSKI. Mr. President, my purpose in rising is to simply draw 
some attention to what is certainly evident to this Senator from 
Alaska; and that is, our increasing dependence on Mideast oil sources. 
As we have seen within the last few weeks, there has been a crisis as a 
consequence of the efforts of Saddam Hussein to once again provide the 
world with a reflection on how we have become more and more dependent 
on imported oil from the Mideast. We had United States cruise missile 
attacks against Iraq again, highlighting the crucial dependence that 
the United States has become accustomed to in its dependence on 
imported oil.
  I think it is fair to say the administration's policy is one that is 
really absent. It is difficult to identify just what our policy is, as 
far as energy is concerned. Back in 1973 when the United States was 
approximately one-third dependent on imported oil, we entered into a 
national security analysis because we were concerned that that 
increasing dependence would lessen U.S.

[[Page S10584]]

leverage in dealing with our neighbors in the Mideast. As a 
consequence, Mr. President, we established the strategic petroleum 
reserve. That was in response to the Arab oil embargo of 1973.
  Again, I remind my colleagues that in 1973 we were approximately one-
third dependent on imported oil, so we authorized the creation of SPRO, 
the strategic petroleum reserve, in Louisiana in salt caverns, where 
there was the commitment by this Nation to have an emergency supply of 
oil on hand, approximately a 90-day supply. We filled SPRO with some 
600,000 barrels, which cost us about $17 billion, because we were 
paying a relatively high price for oil at that time, about $27 per 
barrel.
  Today, Mr. President, we are 50.4 percent dependent on foreign oil. 
The Department of Energy, Mr. President, predicts that by the year 2000 
this country will be 66 percent dependent on foreign oil. I do not 
think there is any question about the stability in the Mideast. It 
remains one of the most unstable areas in the world. We had sent up to 
half a million troops over there in 1991 and 1992 during the gulf war 
to protect--protect what, Mr. President--protect the international oil 
supply stream because it was crucial to the Western World.
  We have seen earlier this year our troops bombed in their barracks in 
Saudi Arabia. We have seen Iraqi missiles shoot our planes down. We 
have seen F-117 stealth fighter bombers en route to the area. They are 
there now.
  What is the administration doing about it? Well, they are after 
Saddam Hussein, but they are not doing one single solitary thing to 
lessen our dependence on imported oil. As we attempt to negotiate with 
the Mideast, we see a certain reluctance by our neighbors in the 
Mideast to rally with the United States to take appropriate action 
against Saddam Hussein, whether it be Saudi Arabia or whether it be 
Kuwait. It is rather noticeable that as we attempt to address this 
renegade, we are doing it pretty much alone. Oh, surely the thoughts of 
the other countries are with us, and their good wishes are with us, but 
they do not stand with us with personnel or an open commitment. I find 
that rather ironic.

  Earlier this year, Mr. President, we were looking at Saddam Hussein 
to relieve our dependence on imported oil. When we were in conflict 
with Saddam Hussein back in 1991 and 1992, I think we were looking at 
roughly $1 billion worth of oil coming from Iraq each quarter. So here 
we are at one time committed to try to put him in a cage, and a few 
years later we are looking at Iraq under the regime of Saddam Hussein 
to relieve our dependence on other Mideast countries.
  The point that I want to make, Mr. President, is that on one hand we 
seem to have the inconsistency of creating the strategic petroleum 
reserve at great expense when we were 33 percent dependent on foreign 
oil, and now we are talking about selling a portion of it. We are 
talking about selling a portion of it. Perhaps that will come up in 
some of the debate on the Interior appropriations bill relative to 
generating revenues, but we have already seen our President in his 
budget proposal, in the outyears, in the year 2002, propose to sell 
$1.5 billion worth of SPRO in order to meet his budget projections.
  So, Mr. President, one can say that SPRO is now being used, to some 
extent, as a piggy bank in order to meet budgetary requirements. While 
much of that oil was paid for when prices were prevailing at $27 a 
barrel, it is interesting to note we are selling it at somewhere in the 
area of $18 or $19.
  So on one hand, Mr. President, we have a situation where we 
continually fail to recognize our increasing dependence on Mideast oil; 
on the other, we sell down the oil that we have put aside to take care 
of whatever energy supply disruption may occur, and we fail to 
recognize the prediction by the Department of Energy that by the year 
2000 we will be two-thirds dependent on foreign oil.
  We produce less crude oil now in the United States than we did in 
1955. Imports of foreign oil significantly affect our economy. It has 
been estimated that we spend approximately $150 million per day on 
foreign oil. That is more than $50 billion per year. One looks at the 
trade deficit. Nearly half of it is the cost of imported oil. The other 
half is with our trading partners, to a large degree, Japan and others.
  But three times we have seen international oil supply interruptions 
affect U.S. economic and national security interests. We saw it in 1973 
in the Arab oil embargo, in the 1979 Iraq-Iran war, and, of course, in 
the 1991 Iraqi invasion of Kuwait. Is the Middle East, the Persian 
Gulf, any more stable today than it was in 1973? Of course it is not. 
And the response of the administration toward opening up domestic 
fields here in the United States, to spur employment, keep our dollars 
home and lessen our dependence, is sorely lacking.
  In conclusion, Mr. President, to suggest that the most promising area 
in ANWR cannot be opened safely, with the advanced technology we have, 
is clearly selling American ingenuity and technology short. I recognize 
my time is limited. Other Senators are here to proceed with debate. But 
I remind my colleagues to consider the merits of just where we are 
going relative to our increased dependence on imported oil. One of 
these days we are going to have a crisis in the Mideast, and the public 
is going to blame this body. They are going to blame this Government. 
They are going to blame this administration for not having the 
foresight to decrease our dependence on foreign oil by taking the 
necessary measures at home to stimulate resource development 
protection, which we can do safely with ANWR.
  I yield the floor and I suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk called the roll.
  Mr. BUMPERS. Mr. President, I ask unanimous consent that the order 
for the quorum call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

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