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White House: Oil Costs Due in Part to Lack of Legislation
WASHINGTON, Mar 17, 2005 (ODJ Select via COMTEX)
By Alex Keto Of Dow Jones Newswires
http://www.rigzone.com/news/article.asp?a_id=21211
In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
The Bush administration Thursday blamed the record price levels for crude oil in part on Congress's inability to pass a package of energy legislation.
"The facts are we have run into this problem (of high energy costs) year after year because of a failure to act on a comprehensive energy plan," White House spokesman Scott McClellan said.
McClellan said the package of energy legislation that Bush proposed four years ago would offer the country a "comprehensive solution" to the nation's energy woes rather than "patch work crisis management."
The price of nearby oil futures in New York hit a new all-time high of $57.60 a barrel Thursday. Gasoline and heating oil futures also hit record highs.
The surge, attributed by analysts to buying from speculators such as hedge funds and pension funds, follows a decision by the Organization of Petroleum Exporting Countries Wednesday to pump more oil ahead of the spring to let consuming countries build inventories while they can.
The shift from the usual approach of cutting output ahead of the second quarter shows the depth of the group's concern about supplies later this year amid expectations for continued strong oil demand.
In recent weeks, top administration officials have said they believe that the high cost of crude oil and energy will force Congress to pass Bush's proposed energy legislation.
McClellan revisited the theme when he said members of Congress should "listen to the concerns of their constituents" over rising energy costs and added lawmakers have an obligation to act "they see problems of this significance."
"The president believes that now is the time to act to pass a comprehensive energy plan," McClellan said.
However, on Wednesday, Bush himself took a different view of what has driven crude oil to record high levels again Thursday. He said rising demand in the U.S. as well as in China and India is outstripping supply.
McClellan said the administration could also take steps to make sure "price gouging is going on" and make it clear to oil producers that high energy costs can curtail economic growth.
Also on Wednesday, the Senate took a step toward opening up the Arctic National Wildlife Refuge to oil drilling.
However, even if Congress does ultimately open up the refuge, it will still take years to get new oil supplies flowing from ANWR.
(C) Copyright 2005 Odj
Subcommittee Examines Growing Global Appetite for Energy, Effects on U.S. Consumption Levels for China, India Exceeded 2004 Predictions
March 15, 2004
Contact: Jennifer Zuccarelli (202) 226-9010
http://resourcescommittee.house.gov/Press/releases/2005/0315globaldemand.htm
In accordance with Title 17 U.S.C. Section 107, this material is distributed without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
Washington, DC- As predictions for China's demand for oil jumped 25 percent last week and global consumption far surpassed 2004 estimates, the House Resources Subcommittee on Energy and Minerals announced a Wednesday hearing to study global energy and mineral consumption increases from emerging economies such as China and India.
"Just as the energy and mineral demands of the United States continue to grow, so too do the energy and mineral needs of developing nations such as India and China. We need to better understand the changes in these nations and the global economy to ensure that we can maintain a continual and dependable mineral and energy supply to support our economy and lifestyle," said Subcommittee Chairman Jim Gibbons (R-NV). "At the same time, the U.S. must retool its mineral and energy strategy by encouraging, rather than discouraging, investment in domestic natural resource production."
Energy use will continue to grow among developing countries, accounting for 58 percent of the growth in world demand in the next 20 years, according to the Energy Information Administration. While the world and the United States especially continue to make advances in energy conservation and renewable technologies, experts predict fossil fuels such as oil, coal and natural gas will remain the dominant source of energy. These are the most affordable sources of energy for the growing, fuel-hungry countries.
"We're seeing these developing countries improve the quality of life for their people, but massive economic growth brings a thirst for fuel," said Pombo. "The world's largest energy consumers cannot all drink from the same well. We must begin to look to ourselves to satisfy our energy needs."
With U.S. foreign energy dependence at all-time high, Pombo introduced the North American Energy Freedom Act of 2005 to work toward energy independence by 2025. The plan, which the Chairman hopes to include with the Committee's comprehensive energy bill package, creates a 16-member committee, representing the U.S, Canada and Mexico, to work for energy independence. North America has the resource base, including natural gas, oil, coal, renewable and alternative energy, to achieve energy independence within 20 years.
The Energy and Minerals subcommittee also introduced its new "Keeping Pace with Progress" website, which follows the latest news and reports on the growing global demand for energy and minerals.
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White House: Oil Costs Due in Part to Lack of Legislation