U.S. INDUSTRY LEADERS ASSESS CLINTON'S PERFORMANCE ON ENERGY POLICY

Leaders of U.S. oil and gas associations have more praise for the Clinton administration's energy policy aspirations than for its achievements.

All association officials contacted by Oil & Gas Journal laud Deputy Energy Sec. Bill White's work to help the industry, describing his efforts as "sincere" and "constructive."

Nicholas Bush, Natural Gas Supply Association president, praised the administration's "consistent support" of programs to encourage gas use.

And he said the administration's Federal Regulatory Commission appointees deserve high marks. "They've done a terrific job when you consider the turnover that occurred on the commission. Yet the got up to speed and implemented Order 636."

He said the commissioners have begun using technical conferences to allow industry more advice on proposals before they proceed to the rulemaking stages.

Producers are encouraged at the Minerals Management Service's new negotiated rulemaking initiative to resolve gas royalty problems.

"It's been very good and productive to sit down with MMS and have an opportunity to discuss technical issues and air our views," Bush said. "We hope that's going to yield good results."

Bush said in the area of energy policy, administration officials "were too ambitious about what they thought they could achieve, but that's better than being under-ambitious."

He said the current administration still must resolve a very basic policy conflict: If it continues to promote gas as the fuel of environmental preference, should it yield to environmentalists who want to deny drilling for natural gas in some of the areas where it is likely to be most prolific?

IPAA

Denise Bode, Independent Petroleum Association of America president, said she would give the Clinton administration a grade of "B" on talking a good game about energy policy but an "F" on action.

She said it took independent producers a long time to convince the Bush administration of the extent of the problems facing the U.S. oil industry, but Bush finally acted.

"With this administration, it's sort of the reverse," Bode said. "They talk a really good game on oil and gas issues but they can't seem to deliver anything."

Clinton officials apparently want to build a consensus among themselves on energy policies, when only a few understand the industry.

Bode said it is "probably a long shot" that Congress would pass oil industry relief measures in the final days remaining this session, but chances are good for next year.

IPAA also hopes MMS will act to relax the pending 1990 Oil Pollution Act (OPA90) rules on oil spill insurance for offshore operators. "Independents have become a much bigger player offshore, and are much less likely to have the financial resources of majors," Bode said.

NOIA

Robert Stewart, National Ocean Industries Association president, said, "This administration has, to its credit, expressed an interest in trying to help the domestic petroleum industry. But the follow-through remains to be seen."

"We have seen some evidence the administration is working itself into a position of being supportive of deepwater royalty relief legislation pending in the Congress. So we are encouraged by that.

"We also see some evidence this administration is interested in addressing the very grave concerns raised by the implementation of OPA90, and some evidence it understands what those concerns are."

Stewart said a forthcoming Interior Department solicitor general's opinion on the OPA90 rules will be crucial.

"So I see some positive elements in this administration's approach to energy. It's not everything you would like if you were in the oil and gas business, but its certainly not a blank scorecard either.

"At least some folks in the administration are genuinely interested in trying to salvage a viable domestic petroleum industry."

INGAA

Jerald Halvorsen, Interstate Natural Gas Association of America president, praised the administration's stress on natural gas use and its actions to increase gas research and development spending and gas use for electrical power generation.

He noted the administration's global climate change program negotiated voluntary emission reductions with electric utilities that promise "a fairly good kickup in natural gas use for electric generation."

Halvorsen had high praise for Clinton's FERC.

"In the 7 years I've been in Washington, this is the most universally respected FERC commission in the eyes of the gas industry. It is collegial and well balanced. And no one commissioner leans toward any segment of the industry, which is different from commissions we've had in the past."