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Naval Petroleum Reserve: Opportunities Exist to Enhance Its Profitability

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Report Type Reports and Testimonies
Report Date Jan. 12, 1995
Report No. RCED-95-65
Subject
Summary:

The Naval Petroleum Reserve in Elk Hills, California, is jointly owned by the United States government and Chevron U.S.A., Inc. It is now operated by Bechtel Petroleum Operations, Inc., under a contract that expires in July 1995. Chevron believes that it can run the reserve more profitably than the government can, and in May 1995 it proposed taking over reserve operations. Later, the Energy Department (DOE) suspended negotiations with Chevron on this proposal and recently began to solicit interest from other parties to operate the reserve. Like Chevron, DOE wants to lower the costs of operating the reserve. This report explores actions that DOE and Congress can now take to improve the reserve's profitability.

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