QUESTION FROM MALCOLM WALLOP stion 7a. When does the Department intend to implement last years' authority? What is your time table for the negotiation of a leasing agreement? wer: The Department intends to pursue alternative financing as soon as overall coordination of the negotiating team can be arranged between DOE and other elements of the Executive Branch. Because we are still a military presence in the Middle East and have ongoing contact with the nations in that region, our objectives for SPR fill must be considered in the larger context of relations with those countries. As a result, the timing of negotiations will be affected by the interagency consultations now under way. QUESTIONS FROM SENATOR WALLOP Question 7c: Has the Office of Management and Budget placed any time restrictions on the Department regarding the expenditure of currently available funds for the leasing of oil? Answer: The Office of Management and Budget has made available all appropriated funds for obligation. QUESTION FROM MALCOLM WALLOP Question 8: When you enter into oil "leasing", would the Department consider a Answer: leasing arrangement that included an up front payment to the We are open to consideration of a variety of possibilities. We - would analyze alternatives presented using the principles described in the SPR Alternative Financing Study including those set forth in OMB Circular A-104. QUESTIONS FROM SENATOR AKAKA Question 1. Mr. Gentile, identify the extent to which Hawaii has relied on petroleum products to satisfy its total energy needs. Answer: Hawaii relies on petroleum to meet about 98 percent of state energy consumption, compared to the national average of 24 of coal, natural gas, nuclear energy, hydro-electric and geothermal energy. Question 2. Mr. Gentile, identify the percentage of foreign oil imported to Hawaii in each of the past three years. Answer: Hawaii imported 52 percent of the crude oil supplied to its refineries in 1988, 61 percent in 1989, and 60 percent in 1990. QUESTIONS FROM SENATOR AKAKA Question 3: Answer: Mr. Gentile, estimate the percentage of foreign oil that Hawaii will import in each of the following years: 1990, 1995, 2000, 2005, 2010. The Energy Information Administration (EIA) makes projections of United States' energy supply and consumption through the year 2010. EIA does not project energy data for individual states. Below are U.S. national base case projections of net oil imports (excluding imports for the Strategic Petroleum Reserve) as a percent of oil slightly over 60 percent of its total oil requirement. Though EIA does not have any expected that its dependence on foreign oil will Hawaii's location is favorable for |