International Affairs:

Renewal of Authorities for U.S. Participation in the International Energy Program

T-NSIAD-88-32, May 17, 1988

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GAO discussed proposed legislation which would enable the United States to continue participating in the International Energy Program of the International Energy Agency (IEA). GAO noted that the IEA emergency sharing system: (1) draws upon emergency oil stocks and allocates available supplies during short-term oil supply disruptions; (2) serves to limit excessive price increases and prevent countries from taking panic actions during such disruptions; and (3) is not intended to help with long-term, fundamental changes in oil availability, but may help somewhat during the transition period. GAO believes that Congress should extend the authorities allowing U.S. participation in IEA, since: (1) current authorities expire on June 30, 1988; and (2) it has not identified any circumstances invalidating the original and continuing justification for U.S. participation.