Increased federal funding for oil, gas R&D a 'wise investment,' new IOGCC chairman says

br>By the OGJ editors
HOUSTON, Apr. 8 -- A bolstered federal budget for oil and natural gas research and development projects for the US Department of Energy's Office of Fossil Energy would be a "wise investment," in US energy security, said Arkansas Gov. Mike Huckabee. Huckabee, who is the new chairman of the Interstate Oil & Gas Compact Commission (IOGCC), made the statements in testimony presented to the US House Subcommittee on Interior and Related Agencies Appropriations. Currently, cuts in federal spending in R&D for the oil and gas industry have "created a critical situation," Huckabee said.

The subcommittee, which is chaired by Rep. Joe Skeen (R-NM), will determine the fiscal year 2003 budget.

"While there are differences in opinion about effective energy policy, there is little argument against the importance of research and development in our country's energy future," Huckabee said. "In fact, many experts believe R&D is the most important factor in maximizing the availability and utilization of petroleum resources."

In a recent IOGCC-commissioned study, a decline was noted in R&D spending by the oil and gas industry, while dependence on foreign oil has been on the rise. "The bulk of domestic oil and natural gas exploration and production is now done by independent companies that lack the resources and infrastructure for significant R&D," the report said.

Domestic oil and gas supplies, Huckabee stated, are the US's "best hedge against disruptions and increasing import dependency."

Huckabee concluded, "Going forward, the IOGCC believes effective energy policy will encompass a number of fundamental principles, with R&D serving as the centerpiece of each."