Washington (Platts)--10Jul2007

Efforts by Democratic-controlled Congress to make the US "energy
independent" are misguided and naive, a top Bush administration official said
Tuesday.

     Clay Sell, the deputy secretary of the US Department of Energy, leveled
the criticism at an energy-related conference in Washington. 

     "One of the most popular phrases used in this town is 'energy
independence,'" Sell said at the conference convened by the Heritage
Foundation, a conservative think tank. "The notion that we can be completely
energy independent in this country...in a [global] economy is not only not
economically desirable, it's not even economically possible."

     Sell's comments clash with the rhetoric of the Democratic congressional
leaders, who say the US can and must end its dependence on foreign oil.

     Just two weeks ago, for example, House Speaker Nancy Pelosi unveiled a
wide-ranging package of legislation that she said would "put America on the
path to energy independence." 

     Sell took issue with that sort of rhetoric Tuesday, suggesting that
Pelosi and other Democratic lawmakers don't really understand the realities of
what they are proposing. 

     "I understand the appeal of talking about energy independence," Sell
said. "I would suggest that our distinguished leaders of the Congress, when
they use that [term], I think what they actually mean is energy security, and
effectively managing our risk."

     Sell acknowledged that America should strive to reduce its dependence on
foreign oil, and he outlined various initiatives that the Bush administration
has launched to achieve that goal, such as increasing the use of ethanol and
other domestically grown biofuels.

     But Sell said that US energy policy must continue to emphasize ways of
producing more oil, which he said will remain the dominant energy source for
America's transportation sector "for as long as we can foresee."

     He said the "three best opportunities" for more domestic production are
the North Slope of Alaska, the Outer Continental Shelf and the Rocky Mountain
states.

     The US must also step up its efforts to produce more oil overseas, Sell
said, adding, however, that those efforts are being hampered by several
"disturbing trends," such as the nationalization of oil reserves in Venezuela,
Russia and other countries, the deputy secretary said.

     Sell said the Bush administration would continue to press for an "open,
transparent, and more certain [international] investment climate." That would
allow US oil copanies to "produce more traditional oil and gas from a greater
diversity of sources to help meet the world's energy demand," he said. 

		--Brian Hansen, brian_hansen@platts.com