US Department of Energy Naval petroleum reserve number 1. Financial statement audit

The Naval Petroleum and Oil Shale Reserves (NPOSR) produces crude oil and associated hydrocarbons from the Naval Petroleum Reserves (NPR) numbered 1, 2, and 3, and the Naval Oil Shale Reserves numbered 1, 2, and 3 in a manner to achieve the greatest value and benefits to the United States taxpayer. NPOSR was established by a series of Executive Orders in the early 1900s as a future source of liquid fuels for the military. NPOSR remained largely inactive until Congress, responding to the Arab oil embargo of 1973-74, passed the Naval Petroleum Reserves Production Act of 1976. The law authorized production for six years. Thereafter, NPOSR production could be reauthorized by the President in three-year increments. Since enactment of the law, every President has determined that continuing NPOSR production is in the nation`s best interest. NPOSR currently is authorized to continue production through April 5, 2000