panacea for the Nation's problems, but they are an important means of reducing them by a significant amount. Until we can get underway with its development and begin to recover our investment, my company's resources-both financial and human-will be committed to a successful conclusion of this project thereby precluding us from developing and bringing to fruition other sorely needed projects to produce energy. Other members of the oil industry are also plagued by uncertainty and delay-uncertainty of crude oil supplies, political actions, and environmental considerations affecting facilities and products. It seems to me that we are handicapped and hobbled and unable to do what cries out to be done while the Nation's energy situation, with all of its ramifications, becomes ever more critical. To me, all the signs point toward a difficult 5 to 6 years, at least, just ahead, with growing dependence on foreign supply sources and less and less flexibility at home. The situation cannot be remedied overnight. Oil must be found and that takes years. Transportation facilities must be built and that takes years. Refineries must be built and that takes years if one can find suitable sites and obtain construction permits. Of all the problems facing us, the solution for one, TAPS, is readily available subject to the implementing action of the Congress of the United States. I appreciate your listening to my views and will be most happy to discuss them further with you if you so desire. Thank you. Senator FANNIN. Thank you, Mr. Spahr, and we would like to have questions. First, with your permission, we will hear from Mr. Ream. [The report, and summary referred to by Mr. Spahr follows:] 95-903 -73 - pt. 4 - 13 REPORT BY THE STANDARD OIL COMPANY (AN OHIO CORPORATION) SUBMITTED TO THE SUBCOMMITTEE ON PUBLIC LANDS OF THE HOUSE COMMITTEE ON INTERIOR AND INSULAR AFFAIRS ON PROPOSED LEGISLATION REGARDING PIPELINE CONSTRUCTION ACROSS PUBLIC LAND DETAILED REPORT ON MATTERS RELATED TO APRIL 19, 1973 SUMMARY TRANS-ALASKA OR TRANS-CANADA PIPELINE The following conclusions are based upon a thorough analysis conducted by The Standard Oil Company (Ohio) TRANS-ALASKA vs. TRANS-CANADA Today a pipeline through Canada is regarded TIMING DEPENDENCE MIDWEST OIL North Slope crude oil production would be delayed for nine to ten years after a decision prohibiting construction of the TransAlaska pipeline and the exhaustion of all appeals. This delay is the inevitable result of the need to prepare a detailed design and route analysis; longer construction time; and an understandable desire on the part of the Canadian Federal and Provincial Governments to carefully review proposals, to consider alternatives, and to determine appropriate stipulations. A Trans-Canada pipeline would delay reduc- A decision to build the Trans-Canada pipe- Trans-Alaska or Trans-Canada - 2 MIDWEST GAS PRICE OF A Trans-Canada oil pipeline will delay North A Trans-Canada pipeline, delivering North Slope crude oil to the Midwest, will not affect the price of crude oil or products in that area. Prices will be set by the much greater volume of oil, including Middle East, which will be moving from the Gulf Coast into the Midwest. The North Slope will not be a cheap source of crude oil. ALASKA NATIVE CLAIMS SETTLEMENT More than half of the Alaska Native Claims settlement. WEST COAST By The nation's economic interest is best Trans-Alaska or Trans-Canada ENVIRONMENT MARITIME April 27, 1973 -3 The much longer Trans-Canada pipeline is not environmentally superior to the TransAlaska pipeline constructed in accordance with stipulated safeguards. A Trans-Alaska pipeline will strengthen the U.S. merchant marine and shipbuilding industry. Additional copies of the detailed report may be obtained from The Standard Oil Company (Ohio) Corporate & Financial Planning 1626 Midland Building Cleveland, Ohio 44115 Phone: (216) 575-5465 |