Iogcc proposes new U.S. energy policy

The Interstate Oil and Gas Compact Commission (Iogcc) has proposed a new U.S. energy policy, claiming the nation is vulnerable to an oil supply crisis because "every effort to develop a national energy policy has failed." It said, "As a result, the country has become dangerously dependent upon imported energy. U.S. dependency on imported oil recently reached 50% and is expected to exceed 60% early in the next century."

Oct. 14, 1996

2 min read

It said, "As a result, the country has become dangerously dependent upon imported energy. U.S. dependency on imported oil recently reached 50% and is expected to exceed 60% early in the next century."

Iogcc, which represents 29 producing states, will implement an information campaign to elevate energy issues to a national debate and will work with the National Governors' Association to develop a national energy strategy.

Iogcc contends the U.S. should deal with its oil import dependence before a crisis disrupts supplies or forces military intervention.

Key points

Iogcc said the U.S. should determine the true cost of imported oil.

It contends that because the U.S. military protects supply routes and fields in foreign countries at the cost of billions of dollars, it is thus subsidizing foreign producers to the detriment of domestic producers.

"Iogcc is calling for a comprehensive evaluation of the cost of imported oil that reflects the hidden expenses incurred by the U.S. government. This study will be highly publicized and will be used as the basis for future decisions regarding domestic production incentives."

It said petroleum R&D has suffered because of the focus on more exotic, renewable resources. "Millions of dollars have been spent for research on renewable energy sources. But even by the most optimistic estimates, renewable energy will supply a very small percentage of U.S. energy needs in the next decade. Meanwhile, domestic production continues to decline."

Iogcc said the U.S. should fully define its oil and gas resources and develop technologies that permit lower finding costs and improved recovery rates for domestic petroleum. It also recommended state and federal incentives that prolong production from existing wells and encourage exploration.

And it called for an end to barriers to permitting greater use of natural gas, educating and encouraging consumers conserve liquid transportation fuels, and evaluating the role of imported oil in the U.S. trade deficit.