API urges states to join in call for US energy strategy
Maureen Lorenzetti
OGJ Online
WASHINGTON, DC, July 5 -- The oil industry needs the help of states to convince US policy makers that a comprehensive energy strategy is needed sooner rather than later, the president of the American Petroleum Institute told state energy officials recently.
"I hope you will join us in helping to persuade people to set aside partisanship to work together for energy solutions," Red Cavaney told an Energy Council meeting in New Orleans, La., June 29.
And although the legislative calendar is running short, industry remains hopeful that Congress can resolve its differences, he said.
"We are encouraged by the large number of common elements in the energy plans put forth by the administration and by those from both parties in Congress," he said. "This high degree of correlation in interests underscores the basic recognition that any solution must be comprehensive in nature. Further, it provides an excellent foundation on which all parties can begin serious discussions in development of a national energy strategy -- once the highly partisan rhetoric subsides."
However, industry cannot carry its message alone to sustain interest on Capitol Hill, Cavaney suggested. Rather, it will take a combined effort by other stakeholders, and particularly from energy-producing states, to keep legislation moving forward this session.
"We need increases in all forms of domestic energy, coupled with energy efficiency and conservation, to meet consumer demand into the future. If we work together, we'll leave a lasting legacy of economic growth and prosperity by ensuring that our energy needs are responsibly met, and our environmental protections improved. The proverbial 'win-win' is within reach, if we commit to working together. There are few, if any, more noble causes in which to be engaged."
Time for action is running short. Congress is due to take a month-long recess in August and then adjourn in mid-October if it can pass mandatory spending bills to keep the government running. In addition, congressional sources say falling gasoline prices have lowered the resolve of lawmakers to push through energy legislation that may involve a protracted floor battle.
One likely scenario seen by some lobbyists is that Congress will pass narrowly targeted legislation that has bipartisan support, such as funding for research and development targeted at traditional and alternative fuels. But more contentious items like allowing drilling in a portion of the northeast coastal plan of the Arctic National Wildlife Refuge are less likely to be seriously considered this session.
Cavaney said one promotional vehicle API is using to get its message heard is the internet. The association recently launched web sites on national energy strategy and on summer driving season fuels. Industry officials say expanded use of the internet should also be useful to counteract lingering misconceptions about the oil business.
Cavaney noted that despite what he called the "obvious, confounding factors negatively impacting the gasoline situation," industry is still being accused of "price gouging" although it has been repeatedly investigated and cleared of alleged wrongdoings. "The Federal Trade Commission has twice in recent months completed major investigations of the industry and found no evidence of collusion. Help for the consumer will come from the search for solutions, not replaying the blame game," Cavaney said.
He said there were several reasons for higher gasoline prices, including the cost of crude oil, a longer and colder winter, government fuel specifications, record demand, and regional infrastructure problems.
Recent events have also revived the old charges about excessive oil industry profits, but Cavaney said the truth is that profits have been very much in line with those of other industries -- and very often they are lower. "Our industry is highly cyclical, and one must look across a full business cycle to get an accurate picture."
Contact Maureen Lorenzetti at [email protected]