Alaskan Drilling Tops Debate Over Comprehensive Energy Bill

Jun 03 - The Daily Oklahoman

After years of haggling, Congress again is working to pass the first comprehensive energy bill since 1992.

One of the most controversial pieces of legislation in recent years, the energy bill has drawn strong emotions from all sides about what should and should not be included. People of all political persuasions say the legislation could have a dramatic effect on the country's energy future.

One of the most highly visible parts of the bill is a plan to allow drilling in the Arctic National Wildlife Refuge and other areas, including parts of the Rocky Mountains and offshore East and West coasts.

The House version passed in April allows drilling in the wildlife refuge, but the Senate -- which still is debating its bill -- appears unlikely to include such a measure.

"Opening ANWR would have a minimal impact on the reserve and preserve, and a lot of propaganda being spread about it just isn't true," said Bruce Bell, chairman of the Mid-Continent Oil and Gas Association of Oklahoma. "We have a lot of land that is very prospective for large finds of natural gas. We need to be able to tap those resources. They are fundamentally important for America's energy future."

Other people, however, think a better option is available.

"We currently have the technology to make a car get 40 miles per gallon, and if we required that, it would save more oil than the U.S. currently imports from the Persian Gulf and more than we could ever pull out of ANWR," said Tom Libby, president of the Oklahoma chapter of the Sierra Club. "I'm all about reducing our dependence on foreign oil, but we can do that through efficiencies much more quickly than we can do that through increasing drilling in places like Alaska."

Besides provisions for oil and natural gas production, the energy bill also is expected to include policies and incentives regarding electric generation and utilities.

Brian Alford, Oklahoma Gas and Electric Co. spokesman, said his company would like to see support for clean coal technology, updated electricity reliability standards, tax incentives for building transmission lines and reform of the Public Utility Regulatory Policy Act, which allows the government to require utilities to buy power from certain producers.

Alford said OG&E is opposed to mandates requiring utilities to buy a certain amount of its power needs from renewable sources, but that it supports increased funding for renewables research and incentives for their use.

Oklahoma wind energy promoters echo Alford's support for increased incentives for wind power and other renewables, although most also call for renewable portfolio standards.

One of the biggest issues for renewables supporters, however, is a longer-term extension of the federal production tax credit, which has made wind farms and other renewable generators more affordable.

"A five-year extension would stabilize the industry and really allow for major growth and development to occur," said Kylah McNabb, coordinator for the Oklahoma Wind Power Initiative.

The production credit on large-scale wind and other renewable power generators has been extended in one- or two-year intervals in recent years. The result has been that little or no projects have been initiated during down times after the previous credit expires and before the new credit becomes affective and that demand spikes once the new credit is extended.

Whatever comprises the final energy bill, it is still not likely to find President Bush's desk soon.

-----

To see more of The Daily Oklahoman, or to subscribe to the newspaper, go to http://www.newsok.com .

Copyright (c) 2005, The Daily Oklahoman

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.