US business leaders urge offshore energy action

08 January 2008 18:04  [Source: ICIS news]

WASHINGTON (ICIS news)--Congress must find an environmentally friendly way to develop abundant US oil and gas resources in order to ensure energy supply security that is essential to the country’s economy, a top business leader said on Tuesday.

 

Thomas Donohue, president of the US Chamber of Commerce, told a press conference that while recent congressional actions to improve US energy conservation and efficiency and develop renewable energy resources are worthwhile, the US must nonetheless expand access to vast domestic conventional energy resources.

 

“It is my opinion that security of energy supply is absolutely essential to our nation and our economy, and we are going to need oil and gas and nuclear power for a very long time, even as we develop alternative and renewable energy options,” Donohue said.

 

“If we were to access the extraordinary energy resources we have in the US and help our neighbours in Canada and Mexico develop additional resources there, you would see an extraordinary expansion in our energy capacity, which would drive down the price of energy,” he said.

 

At a press conference outlining the chamber's 2008 legislative goals, Donohue responded to a question about whether the chamber and other US business groups have any realistic hopes of getting the US Congress to lift a 26-year-old moratorium on drilling for oil and natural gas in 85% of US outer continental shelf regions.

 

The US chemicals industry is heavily dependent on natural gas as a feedstock and power source and has been pressing Congress for years - largely without success - to lift the drilling bans.

 

“I understand that this is a presidential and congressional election year and that it will be difficult to do some things in Congress,” Donohue said, “but my feeling is that with oil selling for $100 per barrel there is growing sentiment that we ought to find an environmentally friendly way to go out and take advantage of the energy resources we have.”

 

“I don’t think anybody is interested in continuing to pay $100 per barrel for oil, and I don’t think people in Congress want us to remain dependent on some not very dependable people overseas for our oil and gas supplies,” he added.

 

Bruce Josten, the chamber’s vice president for government affairs, said that if Congress merely voted to open more of the US outer continental shelf regions to energy development “it would have a tremendous impact on the price of energy and on the US economy”.

 

Donohue said the chamber, whose 3m member firms include many chemical and plastics manufacturers, this year will focus on energy along with infrastructure, workforce availability and training, intellectual property and capital issues.

 

Traditionally, during an election year many members of Congress - most of whom are up for re-election - are reluctant to take controversial political positions or pass legislation that might undermine their election prospects.  Development of US offshore energy resources is the kind of controversial issue that members of Congress might be expected to avoid until the November 2008 national elections are over.

By: Joe Kamalick
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