Independent oil and natural gas producers are up in arms over aremark by Energy Secretary Bill Richardson that current oil pricesare at “dangerously high levels.” Richardson cited his concern lastweek and said the Clinton administration stood ready to take actionif prices continued to rise, although he declined to specify whattype of action.

The Independent Petroleum Association of America (IPAA), whichrepresents independent producers, accused the administration ofapparently trying to “jawbone” foreign oil producers intoincreasing their production to bring down domestic prices. But someproducers believe the administration instead may attempt to pulloil out of the Strategic Petroleum Reserve (SPR), the nation’semergency crude stockpile, to lower U.S. prices. These methodswould be “devastating” for domestic producers who still arerecovering from the “disastrously low prices of 1998 and early1999,” said IPAA President Gil Thurm.

Raymond Plank, chairman and CEO of Houston-based Apache Corp.,went a step further and called for Richardson’s resignation. “He isout of line, out of order and should be fired,” Plank said lastFriday.

Richardson has gone “too far” this time, Plank told reporters.He has taken the position that the oil industry “shouldn’t begoverned by a free market. It should be otherwise governed. Whenit’s too high, I intend to interfere.”

Shooting straight from the hip, the Apache executive calledRichardson “as worthless as I would expect him to be, as worthlessas the prior Secretary of Energy was and the prior one to that.”Plank also referred to the one-time Congressman as “just anotherhorse’s ___.” Producers have never had a good relationship with theDepartment of Energy (DOE).

Following reports of Richardson’s remarks, West Texas crude forJanuary delivery nose-dived by about 65 cents Friday to close at$25.23. The same crude had been priced at $10.78 a year ago.

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