WATCHING GOVERNMENT MAPPING AN ENERGY POLICY

With Patrick Crow Oilmen should not expect a new Department of Energy study to propose a fee or other limits on oil imports (OGJ, Aug. 9, p. 20). The new regime at DOE is finding that charting energy policy can be a maze replete with dead ends, pitfalls, and controversy. Earlier this year, newly confirmed Energy Sec. Hazel O'Leary disclosed plans to draft by the end of the summer a strategy to increase U.S. oil and gas production.

Aug. 23, 1993

3 min read

Oilmen should not expect a new Department of Energy study to propose a fee or other limits on oil imports (OGJ, Aug. 9, p. 20).

The new regime at DOE is finding that charting energy policy can be a maze replete with dead ends, pitfalls, and controversy.

Earlier this year, newly confirmed Energy Sec. Hazel O'Leary disclosed plans to draft by the end of the summer a strategy to increase U.S. oil and gas production.

MORE OF THE SAME

The action was heavy with deja vu. O'Leary's predecessor, James Watkins, also upon entering office, said he would draft a national energy strategy by the end of summer. That document was broader in scope but took 2 years longer than expected.

The latest DOE effort also is taking longer than planned. William White, deputy secretary of energy, recently said the September goal would not be met. "The timetable is unclear."

O'Leary at first said the strategy would be aimed at increasing oil and gas production.

White said the goal now is to solve the problem of rising oil imports and "maintain the long term viability of the gas and oil industry," which may or may not be the same thing O'Leary originally had in mind.

He said, "We have been meeting every day for hours at senior levels of the department concerning this domestic gas and oil initiative."

He said later this month DOE will begin talks with other agencies such as the Interior Department, Treasury Department, and Environmental Protection Agency whose actions affect energy production.

White predicted the study would emphasize the oil industry is one of a handful of strategic national industries and as such should be protected as part of a broad trade policy.

He said that hasn't been the case in the past. "That's in part due to some public perceptions it's not a high technology, high wage industry, which it definitely is."

At any rate, White said, DOE intends to be the "lead spokesperson for identifying the strategic role of the oil industry."

IMPORTS, OPTIONS

As to rising oil imports, White said the Clinton administration, unlike the Republican administrations that preceded it, does not consider them to be benign.

He said the DOE policy talks are close to deciding what level of oil imports should trigger some sort of government response-such as when imports exceed 50% of consumption.

The eventual policy will offer the president a menu of options he could take to restrain oil imports, options ranging from government policy changes to new legislation.

White said while no options have been ruled out yet, he does not expect the final list to contain proposals for oil import fees or limits.

He indicated the president will be given a list supported by a consensus and devoid of controversial ideas. That, of course, would automatically rule out an oil import fee.