Oil, gas interests, users disappointed by Bush's energy remarks

Washington (Platts)--1Feb2006

US oil and natural gas interests appeared disappointed that President
Bush's State of the Union address contained no call for expanded exploration
in the US, especially of gas. 

     "[W]hile the president's proposals to seek new research and development
for alternative technologies are valuable steps, it is equally important to
assure that the nation maximizes its domestic oil and natural gas production,"
Independent Petroleum Association of America President Barry Russell said
Wednesday. "In part, this means that federal resource areas, including
offshore resources, need to be available to diminish reliance on unstable
energy sources." 

     Paul Cicio, president of the Industrial Energy Consumers of America,
applauded Bush's call for the US to cut its reliance on Middle East
oil by 75% by 2025, but complained that the speech failed to address the
immediate concerns of industrial consumers over gas supplies and prices. 

     "We are disappointed that there was no acknowledgement that we have a
natural gas crisis that needs urgent action right now," Cicio said. "We need
additional short-term supply that will allow manufacturing to survive until
these new technologies become commercialized," he added. 

     Senate Energy and Natural Resources Committee Chairman Pete Domenici
(Republican-New Mexico), who has said he would support legislation this year
to expand offshore gas production and open the Arctic National Wildlife Refuge
to oil and gas development, acknowledged such concerns. 

     "Traditionalists may be disappointed that oil and gas weren't the
centerpieces of his energy remarks, but the president is absolutely right to
map out an expanded strategy in alternative energy," Domenici said.

     Advocates of ANWR development said they were disappointed that the topic,
a key element of the Bush's 2001 national energy plan, was missing from the
speech. "We wish ANWR was in there," Adrian Herrera, a staff member with
Arctic Power, a coalition of industry groups. "I think everyone did, really,
considering the pre-speech hype that he would be talking about energy. We're
very surprised that he didn't."

     Still, Herrera said he sees no less resolve to open ANWR in the Bush
administration or among key Republican lawmakers. "The Energy Department and
the Interior Department fully, fully support this issue, and the president has
said numerous times that ANWR is a very important thing," he said.

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