By the OGJ Online Staff
HOUSTON, Apr. 4�The US �energy picture does not look good,� Interior Sec. Gale Norton warned Wednesday.
Norton spoke at a US Minerals Management Service event honoring oil companies for safety and minerals reporting achievements.
She said, �In the next 20 years, according to calculations by the Energy Information Administration, our nation's demand for oil is expected to jump 30% and natural gas by more than 50%.
�The reality is that our domestic production is declining. We now produce nearly 40% less oil than we did in 1970. Unless policies are changed, production will continue to decline. The projection is just over 5 million b/d by 2020, down from a high of 9.4 million b/d 30 years ago. Failure to meet this challenge may harm our prosperity, damage our national security, and may affect the way we live our daily lives.�
Norton said a new spirit of cooperation could bring the nation �production of energy in a way that is environmentally safe from a steady supply of domestic sources.�
She said industry and environmentalists have much in common. �They all want to protect the environment. They all want to secure supplies of energy for America. They all want to keep our economy moving. They might not admit it, but there is common ground.
�America's offshore oil and gas production has an excellent safety and environmental record. Oil spills today are rare. I've been told 150 times as much oil seeps naturally from our oceans as comes about from leaks from our oil production facilities. That's despite the fact that nearly a quarter of our oil and gas production is from offshore. I find these figures very impressive. I also find there is a major gap between that good-news reality and the perception the American public (has of the industry). �Few people are aware of the accomplishments of the responsible companies in this industry.�
Norton said the US must open areas with high prospects for energy production for environmentally protective development.
�That�s why the administration is recommending adding production from the North Slope, including the Arctic National Wildlife Refuge.
"That's why my department is studying whether access to public lands should be expanded.�
Norton warned that electricity shortages this summer would bring energy issues more in the spotlight.
�The Bureau of Reclamation in the Interior Department operates many dams in the West. The reports coming back from them and those who operate other hydropower dams in the Pacific Northwest is that this is the second driest year on record. That means there will be shortages that will affect the availability to supply even the main power customers and serve the needs of Washington and Oregon.
�It means there will be no excess power to supply California markets. California-type problems will soon begin appearing in other states. One lesson from California is that we need to plan ahead. Their decisions not to build power plants, over the past 2 decades, are beginning to come back to haunt them today.�
