In an effort to keep the energy bill on the front burner, Sen. Pete Domenici (R-NM), chairman of the Senate Energy and Natural Resources Committee, reminded gas consumers and the media what he said late last month: “I hope and pray that during the ensuing months without an energy bill we don’t have high spikes in natural gas prices and the people of our country asking: What have we done about it? Our answer is nothing. I hope that doesn’t happen. But I think there is a chance it will happen.”

He noted that his committee already has studied the causes of the recent gas price spikes and has crafted legislation to help address the problem. The problem is that The National Energy Policy Act is currently stalled in the Senate by a filibuster.

He said gas price volatility should be expected in a nation that continues to become overly dependent on the fuel to heat homes and generate electricity.

“I understand and share the frustration of natural gas consumers regarding the sustained high prices and volatility. While recent price increases have attracted media attention, it is important to remember that prices throughout 2003 were 60-65% higher than in 2002. With our growing dependence on natural gas, the American public can be assured of more price surprises related to tight supplies,” Domenici said.

A plea by large chemical maker Huntsman LLC for Congress to investigate soaring natural gas prices, led by an express train futures market, was heard last week in Washington. Senate Judiciary Committee Chairman Orrin Hatch (R-UT) said last Friday that he will hold hearings when Congress returns next year. The move was seconded by Sen. Harry Reed (D-NV), assistant minority leader. The prompt month gas futures contract closed up 60 cents last Friday to $7.22/MMBtu and reached a high of $7.55 during the week. It has since retraced its steps down to near $7.

While Domenici expressed a willingness to consider new hearings on natural gas issues by his committee, he noted that the committee conducted hearings in February and July to discuss increasing gas prices and the impact on the economy.

“As a result of those hearings we put together a comprehensive energy bill that will encourage domestic production of natural gas as well as implement consumer protections that will punish fraudulent and manipulative behavior in natural gas markets,” he said.

“We cannot continue to pursue an energy policy that relies on warm winters and cool summers to keep our natural gas supply balance in check. Our economy is growing and affordable energy supplies are essential to our continued economic success. Failure to pass a comprehensive energy bill will continue to rob our economy of jobs and economic growth.”

Critics, however, charge that the energy bill does very little to improve the current gas market situation. Some of the more favorable provisions include increased drilling access for producers and a stepped-up permitting process. But analysts at Raymond James & Associates still called the bill “all pork and no beef,” and said it had little to offer the oil and natural gas industries.

The proposed extended and enhanced Section 29 tax credits will add up to less than 2% of recent E&P capital spending, the analysts noted. While the bill would offer incentives of around $560 million a year in the upcoming decade to E&P companies, they said these were tiny compared to the industry upstream spending of nearly $50 billion in 2002. They also said that three-fourths of all of the proposed $23.5 billion in direct tax benefits had nothing to do with oil and gas production.

Capitol Hill experts and analysts also generally believe that carrying the bill over to 2004 sentenced it to a “slow death” because lawmakers won’t want to tackle the hot-button issue of energy in an election year. But history could prove the pessimists wrong. The first comprehensive energy bill, The Energy Policy Act of 1992, was passed by Congress in October of that year, just weeks before the presidential election, which the first President Bush lost.

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