President Bush has signed the Energy Policy Act of 1992, capping a 3 1/2 year drive to revitalize U.S. energy law.
The Oct. 24 ceremony was held in the shadow of a Jack-Wade Drilling Inc. rig working on a deep hole near Maurice, La.
Bush credited Democratic and Republican congressmen for their work on the bill but especially retiring Energy Sec. James Watkins.
He called Watkins "a man of vision and integrity" who "has stayed in this from day one, fought against a lot of political odds, changed and worked, and given and taken."
INTENDED GOAL
Bush said the law will promote conservation and production of domestic fuels. The Department of Energy said the measure could cut oil imports 4.7 million b/d by 2010.
Bush said, "By far the most important change that we make, as it affects the independents, is to reform the alternative minimum tax to better reflect the risk it takes to explore for oil. The reform will allow (you) producers to keep more of your hard earned money to reinvest in the production of some domestic fossil fuels."
The Independent Petroleum Association of America estimates AMT relief will result in 4,850-6,850 more wells drilled next year and create 45,000 American jobs, including 25,000 in oil and gas production.
Such blockbuster bills usually are signed in large Washington ceremonies attended by congressmen and their staffs.
So the politicians were irritated that Bush held the energy bill until he could sign it in an oil producing state for his political advantage.
Rep. Phil Sharp (D-Ind.), a key author of the law, said, "It is sad that President Bush chose to sign the bill on a reelection campaign trip, belying the bipartisan nature of this achievement. But even such a finish cannot detract from the significance of what we have achieved."
A MAJOR FEAT
Passage of the measure was a major feat, notable in several respects.
One was the evolution of the bill. Watkins at first proposed a blueprint for reducing energy imports. But the White House pulled the teeth from the energy strategy, leaving a hodgepodge of policy reforms that did nothing-except for AMT relief-to increase oil and gas production. In the end, industry narrowly fended off efforts to make the legislation an antiproduction bill.
Also, the scheme of giving something to everyone in the bill paid off. It seemed near death several times and passed only in the final hours of Congress, which seems to be the norm for major energy legislation.
The measure survived election year politics, something several other major bills did not. The Democrats who lead Congress knew full well Bush would use the legislation to bolster his reelection campaign. Democratic presidential candidate Bill Clinton could have killed the bill with a few unkind words but instead supported it.
Copyright 1992 Oil & Gas Journal. All Rights Reserved.
