The U.S. Senate has passed its National Energy Strategy bill, sending the omnibus measure to the House of Representatives.
Similar legislation has been reported out by a House energy subcommittee. The full energy committee could take it up as early as this month.
The Senate bill is designed to expand use of domestic fuel supplies, while encouraging use of alternative fuels and energy efficiency. It restructures many federal energy research and development programs to place greater emphasis of commercialization of technologies.
For the petroleum industry, the bill's main attraction is that it would promote expansion of gas markets and streamline federal regulation of gas pipelines and pipeline construction, which DOE estimates could result in added sales of as much as $8 billion during the next decade.
Energy Sec. James Watkins praised the Senate bill. He said the pending House legislation is "workable, although we disagree with some elements of it."
Watkins said the Senate bill, along with initiatives under way at DOE, would reduce U.S. oil imports 6 million b/d by 2010.
The Senate passed the bill 944 after 7 days of debate and a number of amendments. Dissenting were Sens. Dave Durenberger (D-Minn.), Bob Graham (D-Fla.), Robert Smith (RN.H.), and Paul Wellstone (D-Fla.).
ANWR ISSUE
The Senate bill was passed without two controversial issues: leasing of the Arctic National Wildlife Refuge (ANWR) Coastal Plain of northern Alaska and measures calling for greater fuel efficiency in new autos.
Sen. Frank Murkowski (R-Alas.) said he may attempt to amend economic recovery legislation this spring with an ANWR drilling provision.
The bill's main author, Sen. Bennett Johnston (D-La.), said the legislation is "the most comprehensive, effective energy bill ever considered."
He admitted that because it does not include ANWR drilling, it is not an oil production bill. He said, "The oil industry is a very, very sick industry. The preferred way to help it is through tax incentives, particularly changing the alternative minimum tax."
Johnston said, "ANWR drilling will not be a ripe issue this year. When all the shouting is over, it will not be up for a vote this session."
But Watkins said the administration will "keep fighting for ANWR."
Watkins said the bill, as passed, "will lead to creation of hundreds of thousands of jobs and keep billions of dollars from flowing overseas for the purchase of foreign oil between now and 2010."
ADMINISTRATIONS'S PROGRESS
Watkins also released a 1 year progress report on the administration's efforts to implement more than 90 of its NES initiatives that do not require legislative action.
On oil issues, DOE has invited bids for projects to develop and apply advanced enhanced oil recovery technology to U.S. oil fields most vulnerable to abandonment.
DOE has completed expansion of the Strategic Petroleum Reserve storage capacity to 750 million bbl of oil.
And DOE has created an office of export assistance to help U.S. energy companies secure business overseas and has worked to help oil companies open markets in Russia and Latin America.
The Internal Revenue Service has issued rules on a 15% tax credit for new or significantly expanded EOR projects, as required by the 1990 Budget Reconciliation Act.
The Commerce Department last December issued a license for the export of as much as 25,000 b/d of California heavy oil.
The Interior Department has proposed a 5 year offshore leasing plan and proposed to lower royalty rates for stripper wells.
Later this year an interagency task force is due to recommend state and federal actions that would reduce regulatory barriers to environmentally sound development of Alaskan North Slope oil fields.
On natural gas issues, the Federal Energy Regulatory Commission has rules pending on pipeline rate reform and construction.
And DOE has proposed a fiscal 1993 budget that expands natural gas research and development to more than $108 million.
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