3. These Alaska OCS areas are nationally important, however, local communities bear the burden of supporting the OCS development and associated impacts. How would impact aid programs from OCS revenues benefit local communities? Response: President Bush, in his June 26, 1990, statement on offshore leasing and development, directed the Department of the Interior to prepare a legislative initiative that will provide coastal communities directly affected by OCS development with a greater share of the financial benefits of new development and with a larger voice in decision making. The proposal being considered by the Administration would provide impact assistance to local communities in a manner that is proportional to impacts associated with OCS development. We believe it is appropriate to provide communities located near OCS development with a greater share of the benefits derived from such development. On March 11, 1991, Robert H. Gentile, Assistant Secretary for Following the hearing, you submitted written questions on behalf If we can be of further assistance to you or your staff, please Enclosures Sincerely, Joseph C. Kaupinde Jacqueline Knox Brown Congressional and Intergovernmental for Question 1: Answer: QUESTIONS FROM SENATOR WALLOP Would you agree that many of today's energy We agree that in the international oil market, Oil prices are affected by OPEC actions and by other political and governmental influences. However, we do not As the National Energy Strategy points out, we are part of an interdependent, international world oil market. We cannot change that reality. We can, however, reduce our vulnerability to disruptions in the world market by the demand, supply and NES. Question 3. As you are aware, S. 341 contains a provision which would Answer: establish a price differential between domestic and imported crude We agree that this requirement is in effect a charge on the QUESTION FROM MALCOLM WALLOP Question 4: Would you comment on the effectiveness of the recent coordinated IEA drawdown of strategic stocks. Answer: Answer: Answer: 8. In your judgment, was there full cooperation There has been excellent cooperation among IEA countries committed to make available to the market a when it is available. Contingency Plan b. What was the estimated effect on international energy prices? We do not believe that it is possible to quantify the effects on international energy prices of the coordinated response; but, we believe the stability in oil prices was due, in part, to the successful development and implementation of an IEA coordinated response. Is C. Is the coordinated drawdown still in effect? |