EFFICIENCY OF EXECUTIVE AGENCIES WITH RESPECT
TO THE PETROLEUM INDUSTRY

27-458

HEARINGS

BEFORE THE

PERMANENT

SUBCOMMITTEE ON INVESTIGATIONS

OF THE

COMMITTEE ON

GOVERNMENT OPERATIONS
UNITED STATES SENATE

NINETY-THIRD CONGRESS

FIRST SESSION

PURSUANT TO SECTION 4, SENATE RESOLUTION 46,
93D CONGRESS

NOVEMBER 29 AND DECEMBER 13, 1973

PART 1

Printed for the use of the Committee on Government Operations

U.S. GOVERNMENT PRINTING OFFICE
WASHINGTON: 1974

For sale by the Superintendent of Documents, U.S. Government Printing Office
Washington, D.C. 20402 - Price $2.20

Allvine, Dr. Fred C., professor of marketing, Georgia Institute of

Technology.

13, 45

Bennett, Elmer F., former General Counsel, Office of Emergency
Preparedness._

Duffy, La Vern J., assistant counsel, Senate Permanent Subcommittee

on Investigations..

201, 223

11, 45

Hamilton, Dr. Richard A., assistant professor of marketing and
statistics, University of Missouri___.

Lincoln, Gen. George A., former Director, Office of Emergency

Preparedness...

Walter, Earl, General Accounting Office.

EXHIBITS

13

201

45

Introduced Appears
on page on page

1. Committee print dated November 1973, and entitled "Staff

Study of the Oversight and Efficiency of Executive Agen-

cies With Respect to the Petroleum Industry, Especially

as it Relates to Recent Fuel Shortages".

2. Article, Oil and Gas Journal of January 5, 1970. Subject:

Tax reform in the oil industry-depletion allowance cut

from 271⁄2 percent to 22 percent..

3. Article, Oil and Gas Journal of January 26, 1970. Subject:

The Cabinet Task Force on Oil Import Controls and its

potential effects on the oil industry..

4. Article, Oil and Gas Journal of February 9, 1970. Subject:

TIPRO warning that the United States has depleted its

surplus producing capacity---

5. Article, Oil and Gas Journal of March 2, 1970. Subject: Presi-

dent Nixon postpones action on the recommendation of the

Cabinet Task Force on Oil Import Control..

6. Article, Oil and Gas Journal of April 6, 1970. Subject: Gaso-

line price increase....

7. Article, Oil and Gas Journal of April 13, 1970. Subject:

Louisiana approaching oil production peak.-

8. Article, Oil and Gas Journal of April 13, 1970. Subject:

Decline in crude oil reserves-biggest drop in history.

9. Article, Oil and Gas Journal of April 20, 1970. Subject: Large

oil company profits for 1969 were down from 1968-..

10. Article, Oil and Gas Journal of May 18, 1970. Subject: Oil

Oil industry concerned over excessive gasoline stocks - - - -

11. Article, Oil and Gas Journal of June 15, 1970. Subject: Presi-

dent Nixon asked Congress to cancel 20 offshore leases in

the Santa Barbara Channel_.

(*)

12

(*)

12. Article, Oil and Gas Journal of July 13, 1970. Subject: The

increase in tanker rates causes import ticket values to fall, 12

13. Article, Oil and Gas Journal of July 13, 1970. Subject: In-

dependent gasoline marketers gain on majors' market

share.....

*May be found in the files of the subcommittee.

Introduced
on page

14. Article, Oil and Gas Journal of August 17, 1970. Subject:
Domestic crude oil production jumps to the highest level
in history..
15. Article, Oil and Gas Journal of August 17, 1970. Subject:
President Nixon creates the Special Energy Subcommit-
tee for finding solutions to the fuel crisis..

16. Article, Oil and Gas Journal of August 24, 1970. Subject:
President Nixon rejects the recommendations of the Čabi-
net task force study on import controls.......

17. Article, Oil and Gas Journal of August 24, 1970. Subject:
Senator Philip Hart asks FTC to make antitrust study of
gasoline marketing..

18. Article, Oil and Gas Journal of September 7, 1970. Subject:
The National Petroleum Council warns of a residual fuel
oil shortage for the upcoming winter...
19. Article, Oil and Gas Journal of November 16, 1970. Sub-
ject: Gulf Oil Corp. increases the price of crude oil by
25 cents per barrel...

20. Article, Oil and Gas Journal of November 30, 1970. Subject:
The Oil industry predicts there will be no residual fuel oil
shortage..

21. Article, Oil and Gas Journal of January 4, 1971. Subject:
OPEC increases prices and imposes 55 percent minimum
tax; reduces earnings of international producers..
22. Article, Oil and Gas Journal of March 22, 1971. Subject: Oil
industry may be facing a refining capacity crunch because
of short capital, siting problems, and uncertain crude
supplies---
23. Article, Oil and Gas Journal of April 19, 1971. Subject: Oil
industry sales are up but profits are down 1.9 percent due
to inflation, economic slowdown, higher taxes, and environ-
mental costs...

24. Article, Oil and Gas Journal of June 28, 1971. Subject: Gas-
oline prices averaging lowest since 1969...

25. Article, Oil and Gas Journal of June 28, 1971. Subject:
General Lincoln expresses concern over the lack of
refinery capacity-industry claims import policies are to
blame.

26. Article, Oil and Gas Journal of August 23, 1971. Subject:
Office of Oil and Gas report predicts a refining shortage
by 1975 resulting in increased product imports--
27. Memorandum dated September 2, 1971, from Robert E.
Shepherd, to Gen. George A. Lincoln, through William C.
Truppner re OPC working group meeting of September 2,
discussing oil import quota levels for 1972...

28. Agenda for the Oil Policy Committee meeting of September
3, 1973
29. Article, Oil and Gas Journal of September 6, 1971. Subject:
A Chase Manhattan Bank survey shows industry profits
being squeezed to the point where expansion to meet
future demand may not be possible_-_-

30. Memorandum for the record dated September 8, 1971, by
Robert E. Plett re: Minutes of the Oil Policy Committee
meeting of September 3, 1971----

31. Article, Oil and Gas Journal of September 13, 1971. Subject: Independent's gain on major oil company's share of the gasoline market.

32. Article, Oil and Gas Journal of September 27, 1971. Subject:
Office of Oil and Gas warns sulfur regulations will make
it difficult for refiners to meet demand; low-sulfur crude
in short supply--

33. Article, Oil and Gas Journal of October 18, 1971. Subject:
Phase II extends price controls-price hikes unlikely.
May be found in the files of the subcommittee.

12

Appears on page

12

(*)