NATIONAL SECURITY DECISION DIRECTIVE (NSDD-134) ON UNITED STATES INTERNATIONAL ENERGY POLICY

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP10M02313R000100900001-0
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 7
• Document Creation Date: December 22, 2016
• Document Release Date: April 24, 2012
• Sequence Number: 1
• Publication Date: March 27, 1984
• Content Type: MEMO

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SECRET
March 27, 1994
MEMORANDUM FOR THE VICE PRESIDENT
SYSTEM II
93351
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THE
SECRETARY
OF
STATE
THE
SECRETARY
OF
THE TREASURY
THE
SECRETARY
OF
DEFENSE-
THE
SECRETARY
OF
THE INTERIOR
THE
SECRETARY
OF
COMMERCE,
THE
SECRETARY
OF
ENERGY
THE
DIRECTOR,
OFFICE OF MANAGEMENT AND BUDGET
THE
DIRECTOR
OF CENTRAL INTELLIGENCE
UNITED STATES REPRESENTATIVE TO THE
UNITED NATIONS
THE CHAIRMAN, COUNCIL OF ECONOMIC ADVISORS
THE CHAIRMAN, JOINT CHIEFS OF STAFF
SUBJECT: National Security-Decision Directive #NSDD-134)
on United States International Energy Policy
(S)
The attached National Security Decision Directive establishes
certain U.S. international energy policy goals and objectives.
(S)
FOR THE PRESIDENT:
Attachment
NSDD-134
SECRET
DECLASSIFY ON: OADR
Robert C. Mc ane
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90351
NATIONAL SECL(RITV DECISION(
DIRECTIVE NUMBER 134
March 27, 1984
United States International Energy Policy Goals and objectives (S7
This Directive outlines certain U.S. international energy
policy goals. It is designed to supplement policy guidance
included in National Security Decision Directive Number 87.
Because it is desirable to maintain flexibility in order to be
able to tailor specific responses to the situation, only broad
guidelines will be presented, (S)
1. Certain U.S. International Energy Policy Goals
The best policy to guarantee the continued flow of oil from
the Persian Gulf in the near term is to ensure, along with our
allies and cou.tries in the area, freedom of navigation in the
Persiar Gulf and the Strait of Hormuz, as well as protection
of key oil production and transshipment facilities; and over
the longer term to favor increasing the number of alternative
outlets for Persian Gulf crude. (S)
The international energy policy of the-U.S. concerning major
oil supply disruptions is based upon four fundamental princi-
ples:
o Primary reliance on free market forces.
o Support for measures to enhance energy supplies in
an emergency.
o Provision of energy supplies for defense and broader
national security purposes under all circumstances.
o International cooperation with other energy consum-
ing countries through the International Energy
Agreement (IEA) and other mechanisms to reduce
panic, minimize economic dislocations and assure
that the U.S. and its allies do not suffer unaccept-
able harm as a 'result of an oil supply shortfall.
(S)
Since the L.S. cannot escape the economic and geopolitical
consequences of a major oil supply disruption, we must be
prepared to deal with such a situation on a cooperative basis
with our allies. It is recognized, therefore, that some
flexibility is needed in developing an international response
to an energy disruption. Different countries have different
economic and political environments, as well as different
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capabilities to respond to a supply interruption. U.S. policy
should strive to obtain commitments from our allies to
policies that will fairly share the burden and reduce the
adverse impacts of a major oil supply disruption by means
which accommodate the respective approaches of the U.S. and
its allies. (S)
11. Implementation of U.S. International Policy Goals
Representatives of the U.S. should irnediately begin to
discuss with s.-ur allies c a bil.ateral basis and with the
IEA the nature of the problem and appropriate responses which
tailor each country's commitment to its capabilities. For the
U.S. this means primary reliance on free market forces and the
Strategic Petroleum Reserve (SPR). While we must remain
flexible in order to be able to adapt to circumstances, the
SPR can be a valuable U.S. tool to offset a world supply
shortfall. In most circumstances, an early draw of SPR oil in
large volumes will be our best policy to offset the economic
impact of a major disruption. (S)
In order to establish an effective public information strategy
in support of U.S. international energy policy, I direct the
Department of State and the Department of Energy to work
together to create expeditiously a framework-for-the- -
dissemination of accurate information an international oil
market conditions and to create public understanding of the
fact that -- owing to the integrated nature of the world oil
market -- a major disruption and the resulting price increases
on the U.S. is inevitably a serious problem for us, and not
just our allies. (U)
Consistent with U.S. policy as stated above, in our dis-
cussions with other countries, we should seek to obtain
commitments to appropriate policies which include, but are not
limited to:?ccordinated stock behavior (bearing in mind the
need for flexibility of decision at the time of the dis-
rupt;.on), an effective public information strategy to calm the
market and other means to reduce their demand on world oil
markets. In all circumstances we should encourage the major
consuming countries to increase stocks prior to a crisis,
encourage the expansion of our allies strategic oil and gas
stocks as the best means of dealing with a supply disruption,
and explore appropriate incentives within the IEA/DECD for
other countries to engage in pre-crisis stock building and
stock draws when. 1_ crisis ncctirs . (S1
Because less disruptive alternatives should be utilized first,
we should seek to postpone implementation of the IRA emergency
sharing system for as long as possible. If activation of the
IEA allocation program is required, the U.S. will stand behind
its commitment to the International Energy Program. (S)
III. Further Work
Because domestic oil production is the most secure and best
means of enhancing U.S. supplies in a shortfall, I direct the
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Secretary of Energy to conduct a thorough assessment of
short-term domestic supply measures, including further re-
searc4h into the question of spare crude oil productive capaci-
ty in the United States, including the possibility of
increasing the flow of Alaskan oil southward. (S)
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