WATCHING GOVERNMENT BUDGET WARS

Very little U.S. energy legislation has progressed so far during this session of Congress.

The Senate has passed a bill allowing exports of Alaskan North Slope crude oil and affording royalty relief for deepwater fields (OGJ, May 22, p. 28). That's about it.

However, budgetary struggles are attracting the attention of energy lobbyists.

DEATH FOR COMMERCE?

Last week, Republicans unveiled a plan to kill the Commerce Department.

Commerce is budgeted at $4.2 billion/year, and House Republicans said killing most of the department's functions would save nearly $8 billion during 5 years.

Seven Commerce bureaus would be wiped out, and six others would be trimmed and transferred to other agencies.

The biggest Commerce agency, the National Oceanic and Atmospheric Administration, would be dismembered. The Economic Development Administration would be killed. Functions of the International Trade Administration would be shifted to the Office of the U.S. Trade Representative.

Rep. Dick Chrysler (R-Mich.) said, "There are 19 departments in the government that deal with trade. They could all be reduced to a single Department of Trade."

Commerce was an easy first target for budget cutters, mostly because it lacks a vocal constituency. Critics say it mostly helps export-minded large companies.

A silent constituency also could be a problem for the Department of Energy, which may be the budgeteers' next target.

Although DOE runs a number of important research programs, the oil and gas industry probably will not fight for the department's survival.

The House budget committee wants to kill DOE, and even the Sen ate budget committee proposes deep cuts.

Two thirds of DOE's budget is geared toward nuclear cleanup and weapons programs, functions that would be retained.

Much of the rest would go. DOE estimates the House budget plan would cut fossil energy research 77 and energy efficiency programs 52% Former DOE Secs. John Herrington and Donald Hodel have said the department should be folded. But current Sec. Hazel O'Leary has mounted a vigorous defense.

The issue likely will move to the front burner in June.

ANWR ISSUE

Meanwhile, Republicans are using the budget process to push for exploration on the Arctic National Wildlife Refuge Coastal Plain, east of Prudhoe Bay field in Alaska.

The Senate budget committee ha penciled in revenues of $1.4 billion i the budget, anticipating the sale of ANWR leases.

If Congress agrees to the budget premise, it will make it easier to obtain approval for ANWR leasing. And although President Clinton opposes ANWR exploration, would he veto the budget over the issue?