Times change, and sometimes people change with them.
A case in point is Rep. John Dingell (D-Mich.), chairman of the House energy and commerce committee.
During the past two decades he often has been a tough critic of the oil industry and, due to his position, a formidable obstacle for oil lobbyists.
But last year, Dingell was persuaded that consumers would be better served by natural gas decontrol than by regulation. As a result, phased deregulation was enacted.
Last week Dingell was surprisingly sympathetic to the oil industry in a talk to the National Energy Resource Organization in Washington.
ENERGY CRISIS DECADE
Dingell noted that after Congress passed the National Environmental Policy Act in 1969, pundits said the 1970's Would be the decade of the environment.
"Unfortunately, no one bothered to tell the Organization of Petroleum Exporting Countries or the ayatollah," Dingell said. "In due time, the environmental decade became the energy crisis decade.
"Today many people believe the 1990's will be the decade of the environment.
"I am afraid that unless we appreciate the importance of a healthy energy sector and the complex relationship between our energy and environmental goals we may be doomed to repeat history."
He pointed out that U.S. oil imports are climbing as production drops. What's more, U.S. refineries are, for all practical purposes, running flat out.
"Even if we were finding and pumping more domestic oil, we would not have the capacity to refine it," Dingell said.
He believes major structural changes have improved the operation of the U.S. energy market in recent years but also may have increased the country's vulnerability to disruptions.
For instance, he said, increased competition in the energy market has reduced the safety margin of supplies that could be used in a disruption-like heating oil stocks during last December's bitterly cold weather. And he observed that fuel switching is more prevalent than ever before.
Dingell said to have a sustainable energy and environmental policy, the government must objectively balance the benefits of tougher environmental regulation against the cost to the energy needs of the nation and vice versa.
"Whatever the desired level of environmental protection and energy security, such policies should be carried out in the most economical way possible," he said.
"For years and years, like the boy crying wolf, oil and gas producers have warned about the lack of drilling ... Now, with many convinced that these are not problems, they are."
A glance at drilling and production levels should be enough to sound the alarm.
REMARKABLE ADMISSION
Dingell said, "Independent oil and gas producers may need production tax incentives to ensure we have the oil and gas we need. I do not believe the administration-and, for that matter, many in Congress-appreciate the importance of a sound energy sector. This is something that took me a long time to appreciate."
His admission was remarkable because congressmen never ever admit they have been wrong. It will be interesting to see how his new views affect legislation.
Copyright 1990 Oil & Gas Journal. All Rights Reserved.