Bush asked by US states to restore oil, gas research funds

Washington (Platts)--24Feb2006

Wyoming Gov Dave Freudenthal, who chairs an association of oil- and
gas-producing states, Friday asked President Bush to reconsider his proposal
to eliminate US Dept of Energy funding for oil and gas research in fiscal-year
2007.

     Freudenthal, the chairman of the Interstate Oil and Gas Compact
Commission, said reversing the decision would be consistent with Bush's recent
call for the US to reduce its reliance on Middle East oil.

     DOE is set to spend $64.3-mil on oil and gas research in fiscal-year
2006.

     "It seems to me that restoring the budget, or better yet increasing
research spending, would be a much more prudent and productive course, and
consistent with your stated agenda, which I share, of moving away from
dependence on Middle Eastern oil," he said.

     The Bush adminstration said DOE spending on oil and gas research is
unnecessary now with prices for the commodities high. But Freudenthal and
other critics of the proposal maintain it ignores small producers that
typically lack access to research available to major companies.

     The governor said DOE-backed research has contributed to increases in
production in his and other Rocky Mountain states.

     A similar attempt by the administration to eliminate oil and gas research
funding for fiscal-year 2006 failed in the face of opposition from lawmakers
from oil and gas producing states.

     For more information, take a trial to Platts Inside Energy at
http://insideenergy.platts.com.

Please visit: www.platts.com

Their coverage of energy matters is extensive!!.