WATCHING WASHINGTON NES CLOSE AT HAND

With Patrick Crow The National Energy Strategy could emerge in Washington soon, perhaps as early as this week. The timing depends on when President Bush can make some final decisions on the energy policy proposal. Energy Sec. James Watkins recently said the NES will contain no surprises. "Obviously there are some controversial issues, but they've been controversial in this country for years. There's nothing new. "I think we have a good strategy. It's balanced, it carries out all
Feb. 4, 1991
3 min read

The National Energy Strategy could emerge in Washington soon, perhaps as early as this week.

The timing depends on when President Bush can make some final decisions on the energy policy proposal.

Energy Sec. James Watkins recently said the NES will contain no surprises. "Obviously there are some controversial issues, but they've been controversial in this country for years. There's nothing new.

"I think we have a good strategy. It's balanced, it carries out all the president's objectives, and it's a strategy for consensus building."

A "SUPPORTABLE DOCUMENT"

Watkins said the NES contains very powerful analysis. "We think it is a very supportable document. And it will knock down extremists who come in with new ideas about how to force the American people to change their lifestyles."

Watkins all but declared the NES will propose oil exploration on the Coastal Plain of the Arctic National Wildlife Refuge. He said consumers will need ANWR crude in the long term, and the federal government needs the leasing revenues to help the budget deficit in the short term.

"I'd have to say if I thought there was one element that was critical to the nation, it is opening of ANWR."

Watkins said the Middle East war should provide Congress the impetus to pass NES legislation. "If there were ever a chance to be successful, isn't it now with events we have in the Middle East?"

Congress is concerned about energy, too. Rep. Barbara Kennelly (D-Conn.) recently said, "It is not too soon to begin learning lessons from this situation. First, we should have a comprehensive energy policy ... so we will never again be so reliant on Persian Gulf oil."

Rep. Bill Alexander (D-Ark.) said, "It is no secret that our economic, military, and foreign policies are being driven to an increasing extent by our addiction to oil from the Persian Gulf. We must set America on a new course that will free us from the tyranny of economic and political manipulation made possible by this addiction."

Rep. Leon Panetta (D-Calif.) and 13 other House members were quick to file an NES bill this session. It would expand the SPR to 2 billion bbl, set a standby import tax ensuring a $16/bbl floor price for oil, and stress conservation and alternative fuels.

But the important NES bills will be developed in the House and Senate energy committees. Senate energy has scheduled a hearing this week to explore NES options.

THE RECEPTION IN CONGRESS

Watkins is realistic about the reception Congress will give the administration's NES. He said the administration must be resigned to compromise some.

"But hopefully we'll have a solid enough analytical underpinning to permit a cohesive plan to come out."

Watkins appeared more concerned that the NES will be split and doled out to various committees, where the parts will be changed and passed or changed and shelved.

"We're going to have to make sure this thing stays an integral package," Watkins said. "The relationship among the elements of it are too close and interned to allow it to be fragmented again, which has given us the situation we have in the nation now."

Copyright 1991 Oil & Gas Journal. All Rights Reserved.

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