Congress already has two measures pending that would help tomoderate the high natural gas bills expected this winter — theClinton administration’s package of energy efficiency measures andshort-term tax incentives for producers, Energy Secretary BillRichardson said yesterday.

Before adjourning this month, “I think those would be twoimportant, immediate steps” that Capitol Hill legislators couldtake to mitigate natural gas prices this winter, Richardson toldDaily GPI following a luncheon at the National Press ClubWednesday.

He believes another key to reining in prices for gas and otherenergy sources this winter will be increased supplies of crude oil.”Our hope is that with more crude oil on the market, both heatingoil, natural gas and gasoline prices will moderate,” he told acrowd of energy executives and officials.

Toward this aim, the Department of Energy (DOE) yesterdayawarded contracts for the transfer of 30 million barrels of crudeoil from the Strategic Petroleum Reserve (SPR) to 11 Northeastheating oil suppliers. With this move, the federal government ishoping to avert a heating oil supply shortage in the Northeast thiswinter. The contracts require the suppliers to return to the SPR31.5 million barrels of crude oil next year.

President Clinton’s proposed tax credits would offer incentivesfor natural gas and oil producers to drill “mainly on the Americanmainland,” rather than on the Arctic Natural Wildlife Refuge (ANWR)in Alaska, which Clinton and presidential candidate Al Gore oppose.

Richardson made clear that ANWR, which he described as a “veryfragile ecosystem,” would continue to be off-limits to domesticproducers under a Democratic presidency. “It is our view that thereare other parts in the Lower 48…..that can accomplish the samegoal” as drilling in the Alaskan arctic, he said.

“I think the big [fundamental] difference” between the energypolicies of Gore and Republican presidential nominee George W. Bushis the opening of ANWR to gas and oil production, Richardson noted.

Under Clinton’s term, “natural gas production has increased both[in the] deep-sea and domestically,” Richardson noted. But “we’vegot a [pipeline] capacity problem with getting that natural gas tomarkets.” He urged Congress to pass technology initiatives thatwould clear the way for “more rapid” construction of neededpipeline facilities.

Unlike some, Richardson doesn’t believe the nation is facing an”energy crisis” this winter. “I think we’ve got some energyproblems that need to be addressed both in the supply and demandside,” he said, but he thinks they’re manageable.

Turning to electricity, Richardson dismissed claims thatderegulation caused the problems in the California power marketthis summer. “I don’t think that’s entirely the case…..WhatCalifornia needs is a federal deregulatory initiative that wouldallow California to deal with imported power, that would allowCalifornia to deal with their specific San Diego problem, an areathat was basically taken out of the [state] electricity bill.”

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