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Naval Petroleum Reserves-1: Data Corrections Made but More Accurate Reserve Data Needed

RCED-88-174 Published: Jun 28, 1988. Publicly Released: Jun 28, 1988.
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Highlights

Pursuant to a congressional request, GAO reviewed the Department of Energy's (DOE) actions to correct Naval Petroleum Reserve No. 1 (NPR-1) production data inaccuracies which GAO believed: (1) resulted from a lack of effective internal controls; (2) caused incorrect computation of NPR-1 maximum efficient production rates; and (3) could result in the government's not receiving its entire share of remaining recoverable reserves if NPR-1 were sold.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Energy The Secretary of Energy should authorize the Director, Office of Naval Petroleum and Oil Shale Reserves, to exercise the government's option for phase IVb under the current contract to obtain more detailed geologic and engineering data needed to accurately determine the ownership of oil produced to date.
Closed – Implemented
DOE exercised option IVa of the contract so that additional geological and engineering data about the reserves could be obtained. However, DOE let the contract expire without exercising the phase IVb option.

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Topics

Contract optionsData integrityDomestic crude oilErrorsFederal property managementInternal controlsOil resourcesPetroleum storageProgram managementData errors