WATCHING GOVERNMENT NEWS ITEM: IPAA BITES DOE

The Independent Petroleum Association of America has provoked Deputy Energy See, Bill White into an unusual display of anger.

After the Commerce Department concluded low priced oil imports threaten U.S. security and DOE did not respond with a relief program for independents, IPAA Chairman George Alcorn blasted the administration's "do nothing approach' (see story, p. 31).

That clearly infuriated White, who has lobbied hard within the administration (although often unsuccessfully) for measures that would help the oil industry.

The current DOE has done much more than previous administrations to help small operators. For instance, it is funding an IPAA spinoff that will give independents access to the latest E&P technology (OGJ, Dec. 19,1994, p. 22).

AN ANGRY WHITE

As a lawyer, White chooses his words carefully and is normally mild mannered. But his anger was evident in a letter he sent Alcorn and from the fact he released it to the oil press,White wrote Alcorn, "Exaggerated rhetoric can hardly serve the goals of the individual members of IPAA. Nor does it assist any of us who spend our careers pursuing means to strengthen the U.S. oil and gas industry.

"In my numerous discussions with you, not once have you suggested any concrete measures that have sufficient congressional support that would reduce American oil imports by many millions of barrels per day."

White said Alcorn erroneously said presidents always have proposed major actions following Commerce import studies.

White said the Clinton team is "taking measurable steps to lower the costs of domestic production through technology and to increase natural gas prices through active encouragement of new markets.

"Increasing demand for natural gas to fuel transportation and provide more electricity will do more to strengthen gas prices than any government 'quick fix.' "

White said before Apr. 30 DOE may recommend more actions, including lower insurance limits in the 1990 Oil Pollution Act, relaxing the Alaskan North Slope oil export ban, granting royalty relief for deepwater Gulf of Mexico fields, and allowing the expensing of geological and geophysical costs.

An IPAA spokeswoman said, "We stand by the statements we made. We plan to respond in detail to White's letter."

FANNING THE FLAMES

It would be a mistake for IPAA to fan the flames.

The administration's reaction to the import investigation was Milquetoast but realistic.

Congress and the administration are under intense budget pressure, and any oil industry relief measures-the substantive ones-that cost money are going nowhere.

IPAA had pinned its hopes on the Commerce inquiry for a year, so its disappointment is understandable.

But the administration's solution was no surprise, and IPAA should have responded with diplomatic language.

All IPAA gained by taking out its frustration on DOE was to bite the one hand that can best help it in Washington.