US energy leader calls for more drilling

06 May 2008 03:34  [Source: ICIS news]

HOUSTON (ICIS news)-- Access to the eastern Gulf of Mexico, the US east coast and parts of Alaska is needed to advance domestic production, Devon Energy vice president Tony Vaughn said on Monday.

Vaughn indicated this year is a precarious point for the US energy industry at the sidelines of the Offshore Technology Conference in Houston.

However, the nation’s leaders do not comprehend the overall issue. “We’re having a difficult time having our congress understand the laws of supply and demand,” Vaughn said.

“While [politicians] are trying to represent their constituents and lower prices, there is a disconnect. Prices are high, yet the leaders don’t want to allow access,” Vaughn said.

The US currently consumes twice as much energy as it produces, and the extra energy has to be imported. Vaughn said this was not so 25 years ago, when the US imported only 20%.

“Today, the US produces 16m bbl/day of oil equivalent energy, while daily consummation rates are around 31m bbl/day,” Vaughn said.

Impending cap and trade legislation on emissions reduction could have a negative impact on further production of coal, and Vaughn indicated natural gas development could be strengthened.

“Natural gas is clean burning, and the US is the fourth-largest producer in the world of natural gas,” Vaughn said.

By: Steven McGinn
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