WATCHING GOVERNMENT ENERGY POLICY POTPOURRI

March 6, 1995
With Patrick Crow from Washington, D.C. Getting an energy policy decision out of the Clinton administration can be a trying experience. Last June the U.S. Department of Energy issued a favorable analysis of the merits of exporting Alaskan North Slope (ANS) crude. Even President Clinton volunteered the opinion that ANS exports were a good idea (OGJ, June 27,1994, p. 21). The administration has been mulling it over since then.

Getting an energy policy decision out of the Clinton administration can be a trying experience.

Last June the U.S. Department of Energy issued a favorable analysis of the merits of exporting Alaskan North Slope (ANS) crude. Even President Clinton volunteered the opinion that ANS exports were a good idea (OGJ, June 27,1994, p. 21).

The administration has been mulling it over since then.

The Senate energy committee forced the issue last week by calling a hearing on an ANS export bill and asking Deputy Energy Sec. Bill White to testify. Testimony to be offered at the hearing clearly required a decision, but White House officials did not agree on what the decision was to be until the night before the hearing.

The decision emerged so late DOE had to prepare two sets of testimony for White. One version supported the bill. The other said more study was needed.

A MOTIVE

No one has accused the Clinton administration of having an ulterior motive for lifting the ban from ANS crude, but it does.

It has proposed selling the Elk Hills Naval Petroleum Reserve in California in fiscal 1996. Meanwhile, DOE predicts allowing ANS exports will boost California oil prices and thus the sale price of Elk Hills field.

Even if the field is not sold, ANS exports are predicted to increase Elk Hills federal oil royalties and sales by $99-180 million.

After only 2 months as chairman of the Senate energy committee, Frank Murkowski (R-Alaska) has lost patience with the administration's energy policies.

In a Senate floor speech Feb. 23, Murkowski said it is "unconscionable" that the administration could conclude oil imports imperil national security, then propose no new initiatives.

He said oilmen should not be surprised at Clinton, though. "He is equally unwilling to promote hydroelectric power, nuclear power, or coal power. He supports use of natural gas but not domestic production of natural gas.

"Based on the unfounded fears of the environmental community, he is unwilling to open even the smallest amount of the Arctic National Wildlife Refuge for exploration and development, just as he does not want to see additional onshore and offshore lands opened.

"I find it very ironic that at the very moment the president is saying the administration will do nothing new to promote energy production in the U.S., the secretary of energy is in China promoting Chinese energy production. Perhaps we should invite the Chinese secretary of energy to the U.S. to help our industry."

ASSORTED NUTS

Meantime, Rep. Jimmy Hayes (D-La.) is disgruntled with the Republican majority's rush to pass Contract with America bills in only 100 days.

At a meeting of the Natural Gas Roundtable of Washington, Hayes confided, "My momma always told me Congress is like a box of chocolates. The kind with assorted nuts."

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