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Reuters US senator pushes for drilling in Alaskan refuge

Date: 01-Oct-01
Country: USA
Author: Christopher Doering

Sen. Larry Craig, an Idaho Republican, said the attacks in New York and Washington on Sept. 11 have made it crucial for the United States to open the Arctic refuge to ensure the oil supplies and economic growth.

Supporters of drilling in ANWR estimate the Alaskan wilderness area could contain up to 16 billion barrels of oil, equal to the amount of crude the United States imports from Iraq for 70 years.

"We're highly dependent on foreign oil and any glitch in that system would find us in a desperate situation with our economy and our people," Craig told reporters on Capitol Hill.

"The reality is we can drill in ANWR, and we can do it safely," added Craig, who was joined by several union and manufacturing representatives.

Republican lawmakers have lobbied for opening the refuge to help reduce U.S. dependence on oil imports, especially shipments from the powerful OPEC cartel.

With the world economy struggling, OPEC producers on Thursday left oil production levels unchanged, waiting until November to decide whether to cut output to lift slumping crude prices.

The announcement was applauded by Craig and other lawmakers including Energy Secretary Spencer Abraham who said a cut would have further hit an already depressed economy.

"They recognize this flat economy worldwide, and they could have made it a lot flatter if they lowered production," Craig said.

The Senate Energy Committee has yet to resume debate on a comprehensive energy bill, and with about a month left before Congress adjourns, a vote by the full chamber is not imminent.

Sen. Frank Murkowski, an Alaska Republican, has pushed a stripped-down version of the bill that includes opening up the refuge, and offering incentives to aid U.S. electric, coal, natural gas and nuclear energy production.

But Democrat Jeff Bingaman from New Mexico, who heads the Senate Energy Committee, said he wants to stick with a broader plan that includes electric restructuring and energy conservation measures.

Craig said ANWR is no longer a "sticking point" within the Senate, and a drafted energy bill would likely blend several provisions from Murkowski and Bingaman's bills.

"All of the components are there, it is simply the will of the leadership to produce (legislation) that is holding it up," said Craig, who would like to send a final bill to the president this year before Congress adjourns.

In another measure to boost U.S. oil supplies, Congress also has considered purchasing oil for the country's Strategic Petroleum Reserves.

With the sharp drop to oil prices in recent weeks, an opportunity to increase emergency reserves would be a bigger buffer to a disruption in U.S. crude supplies.

Rep. Joe Barton said Tuesday the House might consider legislation to increase oil reserves if prices drop a few dollars below their recent level of $22 per barrel.

Craig said that while there were no plans to introduce a similar proposal in the Senate, it is something they could "absolutely" consider at some point.

"It's a time when we might just see a market of lower crude prices, and that is an opportunity," he said.

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