Energy Folly in the New Congress
The House of Representatives climaxed the 100 Hours by passing legislation "to move the country toward energy independence and protect consumers. Lord help us if the Senate goes along.
The bill would remove incentives and tax deductions for "domestic production activities" -- with domestic oil exploration at a 20-year high.
It aims to force companies to renegotiate leases signed with the Clinton Administration (the most recent lease sale brought $462 million in bids).
The bill would continue to ban exploration on the Alaska Outer Continental Shelf (where the US Geological Service estimates resources equal to about one-third of US current proved oil reserves).
It would remove deepwater exploration incentives months after a Chevron discovery (in 1.2 miles of water depth and 5.2 miles beneath the sea bottom) that could add 50% to US reserves by about 2010.
The House wants to spend the additional money on alternate fuels research (oil companies spend more than the government on alternate fuels R&D).
The bill would set up a boondoggle similar to the Carter Administration's SynFuels Corporation -- and with the same results.
Most ironic, California voters in November voted on the same issue. Ballot Proposition 87 would have added "fees" to oil company exploration and development and spent the new income on alternate fuel research. Californians rejected the plan, 55% to 45%. Could it be that they know something their Representatives don't?
The bill would remove incentives and tax deductions for "domestic production activities" -- with domestic oil exploration at a 20-year high.
It aims to force companies to renegotiate leases signed with the Clinton Administration (the most recent lease sale brought $462 million in bids).
The bill would continue to ban exploration on the Alaska Outer Continental Shelf (where the US Geological Service estimates resources equal to about one-third of US current proved oil reserves).
It would remove deepwater exploration incentives months after a Chevron discovery (in 1.2 miles of water depth and 5.2 miles beneath the sea bottom) that could add 50% to US reserves by about 2010.
The House wants to spend the additional money on alternate fuels research (oil companies spend more than the government on alternate fuels R&D).
The bill would set up a boondoggle similar to the Carter Administration's SynFuels Corporation -- and with the same results.
Most ironic, California voters in November voted on the same issue. Ballot Proposition 87 would have added "fees" to oil company exploration and development and spent the new income on alternate fuel research. Californians rejected the plan, 55% to 45%. Could it be that they know something their Representatives don't?
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