Some key energy policy questions debated at a Washington conference last week remain unresolved.
The National Energy Summit was sponsored by the Jefferson Energy Foundation, Alliance to Save Energy, and United States Energy Association.
Deputy Energy Sec. William White told the group the Clinton administration's focus on developing renewable and sustainable energy is "leaving a mark on public policy decisions day after day."
GAS FOCUS
White also focused on the administration's enthusiasm about natural gas as a fuel. He said the Department of Energy might summon leading U.S. gas industry executives to a meeting that would explore ways to increase domestic gas demand to 24 tcf/year.
Boone Pickens of Mesa Inc. argued so strongly for more gas use that he sounded antioil.
He said the government should not allow exploration on the Coastal Plain of the Arctic National Wildlife Refuge, which he said would produce only 2 billion bbl of oil, or about 1 year of U.S. oil imports.
"That doesn't save us, so leave the oil and let the next generation develop it," Pickens said.
He said the U.S. oil and gas industry doesn't need more help from the federal government. Oil state lawmakers won the industry incentives in the 1950s and 1960s "that frankly, we didn't deserve."
Pickens said, "The way to solve the problem (today) is to raise demand for natural gas."
Oscar Wyatt Jr., chairman and CEO of Coastal Corp., said the shrinking of the U.S. refining industry is a threat to national security.
He blamed environmental regulations. "There's no incentive to employ (refinery) investment capital in this country."
Wyatt said Congress should place a 10cts/gal import fee on finished products, 5cts on unfinished, and 2 1/2cts on crude.
Speaking earlier, White said the administration is examining the difference in environmental costs for U.S. and non-U.S. refiners.
But he noted there was adamant opposition in Congress last year to a BTU tax on energy, and "anything that would significantly increase the cost of crude would be hard to sell."
FERC ACTIVITY
Elizabeth Moler, Federal Energy Regulatory Commission chairman, said her agency is paying more attention to electric and hydropower issues these days than natural gas.
FERC lawyers, however, are busy defending the rate restructuring rule, Order 636, against federal court suits.
Moler said, "I don't anticipate any major tinkering with 636-only operational refinements and improvements."
But she said a recent court decision will prompt FERC to begin a big picture examination of incremental vs. rolled in rates for pipelines.
One result will be that sponsors of proposed pipelines "will know beforehand what the rules of the road will be" regarding rates.
Copyright 1994 Oil & Gas Journal. All Rights Reserved.
