WATCHING GOVERNMENT ENERGY POLICY DIRECTIONS
Frank Murkowski (R-Alaska), new chairman of the Senate energy committee, says prospects are good the committee will report out a bill by late March removing the ban on Alaskan North Slope crude exports.
California independent producers claim a glut of Alaskan crude has depressed prices for their production. California independent refiners disagree.
A Department of Energy study favored exports (OGJ, July 11, 1994, p. 28). Murkowski thinks the administration hasn't acted because the issue "got hung up in the election."
PETROLEUM ISSUES
Murkowski is circumspect about the possibility of legislation allowing exploration on the Coastal Plain of the Arctic National Wildlife Reserve in Alaska.
His committee will examine ANWR leasing as part of a wider review of U.S. energy policy, which will include analysis of federal land leasing and reducing federal royalties on deepwater Gulf of Mexico production.
Murkowski said the energy committee's overriding objective will be to ease the nation's 51% dependence on imported oil.
He said it is ironic that "exploration is at an all time low, although our engineering and scientific development has never been higher."
Murkowski left no doubt that he favors ANWR leasing. He said it would raise more than $3 billion for federal coffers, and any oil production would supplant diminishing shipments from Prudhoe Bay field.
He maintained "Prudhoe Bay is clearly the best oil field in the U.S., bar none," and oil fields found in ANWR could use modem technology that involve little environmental effect. What's more, Congress should decide energy issues on the basis of "sound science, not emotion."
Murkowski said the committee will work on a wetlands reform bill (74% of Alaska is technically wetlands). "Many other states also are a victim of what is a government takeover (of property) without reimbursement. "
Murkowski said "It's far too early to suggest abolishing DOE" until Congress knows where DOE's essential functions would be moved. DOE could be downsized, at least.
He opposes tax breaks and mandates for the use of ethanol in gasoline.
REFORM NEEDED
Linda Stuntz, a former DOE deputy secretary, told an Energy Security Analysis Inc. seminar Congress should reform wetlands and endangered species laws.
"In many parts of the country, unless these acts are changed, allowing energy exploration will not be the same as doing it."
She said the House may recommend DOE dismemberment, but the Senate must be convinced some savings will result.
Stuntz argued industry must press ANWR leasing this year because if Democrats regain control of the Senate next session, either Dale Bumpers (D-Ark.) or Bill Bradley (D-N.J.) will chair the energy panel. Both are antileasing.
She said House Republicans could help an ANWR bill by putting leasing revenues in the budget. She explained Congress would find it hard to resist such "low hanging fruit."
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