HomeMy WebLinkAboutRES NO 11-94 -SOLUTTO. "0. 1 1 ' 9 4
A RESOLUTION SUPPORTING HR 543 AND
ENCOURAGING PRESIDENT CLINTON AND
THE CONGRESS TO REPEAL LAWS
FORBIDDING THE EXPORT OF ALASKAN
NORTH SLOPE CRUDE OIL.
WHEREAS, Kern County produces more oil than any other
County in the continental United States and the economic impact of
that production is enormous; and
WHEREAS, worldwide over production of crude oil has
caused prices to plunge to a five-year low and has increased the
flood of imported oil and refined products into the United States;
and
WHEREAS, falling prices have severely reduced financial
returns to all U.S. producers, further endangering survival of the
nation's domestic oil industry, which has lost 450,000 jobs in the
last decade; and
WHEREAS, California-production enterprises and related
industries, which employ 70,000 people, have lost 32,000 oilfield
and indirect jobs since the 1986 oil price decline; and
WHEREAS, Kern County, which produces two-thirds of
California's crude oil, has lost 20,000 petroleum-related jobs
since 1985, and is suffering a present unemployment rate of nearly
15 percent; and
WHEREAS, prices for most Kern County crude oil are at or
below cost of production, which will seriously harm the economy of
Kern County by accelerating production losses, flight of oilfield
investment, failure of independent businesses, unemployment,
personal income losses and the loss of local tax revenues; and
WHEREAS, the current glut of low-cost imported oil and
petroleum products, if allowed to continue, will endanger national
security by pushing U.S. oil import dependence above the present
50-percent level, while at the same time weakening the nation's
economy by worsening its trade deficit, which now sends $52 billion
overseas annually to pay for foreign oil; and
WHEREAS, because permanent destruction of U.S. petroleum-
production operations will leave U.S. vulnerable to future oil
price shocks similar to those foreign producers inflicted during
the 1970's, the oil glut constitutes an economic emergency calling
for presidential action to adjust imports of crude oil and refined
products under authority of Section 232 of the Trade Expansion Act;
and
W~LEREAS, the federal ban on export of Alaskan North Slope
crude has created an artificial crude oil glut in California,
further suppressing local oil prices, production, and oilfield
employment; and
W~EREAS, HR 543, by Congressman Bill Thomas, would lift
the ban on Alaskan crude exports, which would restore productionby
as much as 300,000 barrels per day in California, create as many as
15,000 new jobs, and add 10 billion barrels to economically
recoverable reserves in California and Alaska.
NOW, T~EREFORE, BE ITRESOLVEDby the Council of the City
of Bakersfield as follows:
1. The Council respectfully requests President Clinton
to act, under authority of the Trade Expansion Act, upon the
petition filed December 6, 1993, by Independent Petroleum
Association of America, which requests the President to adjust
imports of crude oil and products during this emergency situation;
and
2. The Council supports enactment of HR 543 and, in the
interest of national and economic security, respectfully requests
President Clinton and the Congress to repeal provisions of the
Export Administration Act which prohibit the export of Alaskan
North Slope crude oil; and
3. The Council requests that the Secretary of Energy
support these requested actions; and
4. The Council requests that Governor Wilson contact
President Clinton and the Congress in support of these actions.
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ORIGINAL
I HEREBY CERTIFYthat the foregoing Resolution was passed
and adopted by the Counci~A~5 ~h~fity of Bakersfield at a regular
meeting thereof held on , by the following vote:
ABSTAIN: COUNCILMEMBF.~ ~ ~-%~.
Assistant CITY CLERK and
Council of the City of B~kersfield
JAN 1 2 199~
APPROVED
APPROVED AS TO FORM:
JUDY K. SKOUSEN
Acting City Attorney
JKS/meg
R-l\ALASKOIL . SUP
1/5/94
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ORIGINAL