WATCHING WASHINGTON PROSPECTS FOR THE NES

Nov. 26, 1990
with Patrick Crow These are crucial days for shaping of the Department of Energy's National Energy Strategy. DOE is trying to finish work on the NES and send it to President Bush by mid-December. The White House's Economic Policy Council has been reviewing recommendations and options in the plan, which has gone through several drafts and long interagency debate. DOE originally wanted to get the NES on Bush's desk by Dec. 1 so his policy decisions could be reflected in the fiscal

These are crucial days for shaping of the Department of Energy's National Energy Strategy.

DOE is trying to finish work on the NES and send it to President Bush by mid-December.

The White House's Economic Policy Council has been reviewing recommendations and options in the plan, which has gone through several drafts and long interagency debate.

DOE originally wanted to get the NES on Bush's desk by Dec. 1 so his policy decisions could be reflected in the fiscal 1992 budget proposal that will go to Congress about Feb. 1.

POLICY DECISIONS

In the current draft document, DOE has outlined 60-70 energy policy decisions for Bush to make, about 30 of which are noncontroversial. They are all quite specific, such as: "Shall the U.S. increase (energy source) production through legislating (a specific) tax incentive?"

Some of those policy decisions would require legislation, some administrative action.

Many of them would urge states to take actions such as facilitating pipeline construction.

DOE hopes Congress will consider the legislative changes next year in an omnibus bill, rather than piecemeal.

The department culled and consolidated the 60-70 options from about 750 advanced at lengthy public hearings. All of those options will be printed in the final document to stress the fact that all were fully considered.

Top DOE officials even have encouraged oil and gas association representatives to view some of the NES policy options and comment privately on them.

The NES recommendations can't be tested in the new national energy computer model DOE is developing. It won't be completed in time. But DOE insists it will have adequate data to back its NES findings. The pile of supporting documents is more than 3 ft thick.

DOE officials see three reasons to be optimistic Congress will react positively to the NES: It will be a top-quality document, the Iraq-Kuwait crisis has brought energy concerns to the forefront of the national agenda again, and Bush has first-hand knowledge of energy issues.

Oil and gas association officials hope the NES will live up to its advance billing that it won't be just another general energy policy statement but instead will contain specific goals and detailed, realistic proposals for reaching them.

DON'T EXPECT TOO MUCH

That may be expecting too much. To counter the loss of Kuwaiti and Iraqi oil, DOE recently proposed a similar series of actions to increase U.S. production or reduce consumption (OGJ, Sept. 24, p. 52; Aug. 20, p. 36).

That list's Polyannish measures and the lack of effective DOE followup drew public ridicule.

It also may be too much to expect Bush to make quick decisions on a long series of tough energy policy questions.

Earlier this year, Bush took 5 months merely to decide to postpone three controversial offshore lease sales (OGJ, July 2, p. 26; June 25, p. 23). And this time he also will have the distraction of the continuing Iraqi crisis.

Copyright 1990 Oil & Gas Journal. All Rights Reserved.