23 April 2008 17:55 [Source: ICIS news]
Senator Pete Domenici (Republican-New Mexico), ranking member on the Senate Energy and Natural Resources Committee, told a press conference that he is “not sure that the US economy can sustain this ever-increasing price of oil”.
World oil prices rose to within a few cents of $120/bbl yesterday, although the price fell off by $2 in trading on Wednesday. Overall, oil prices have nearly doubled in the last year.
“I think the jury is still out on the question of whether this country can maintain a viable economy, with growth of around 3% per year, with oil at $120 or maybe soon $130,” Domenici said. “The price of oil is a huge drain on our economy.”
“I recognize that the current economic slump was probably caused by the housing decline and other issues in addition to energy costs, but it will be very difficult for our economy to recover with oil priced as it is because we are sending so much of our capital to foreign countries to pay for oil,” Domenici said.
He said that with global energy consumption increasing sharply, driven in part by emerging economies in
“It is hard to believe that the
“If we are serious about solving our energy crisis, we have to go after those offshore resources,” he said. “It is foolish of us, with as much trouble as we’re in on energy, to leave those resources closed in.” He said that modern drilling and production technology enables offshore development without damage to the environment.
Domenici’s call for an end to the offshore energy development ban followed a statement last week by a leading US House official that the sharp increases in oil prices might help force an end to the offshore ban.
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