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White House seeks US oil drilling to counter OPEC
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USA: September 20, 2002


WASHINGTON - The Bush administration on Thursday repeated its call for more domestic oil drilling to ease the nation's dependence on foreign oil as OPEC keeps a firm grip on oil production.


The Organization of Petroleum Exporting Countries agreed at a meeting in Japan earlier on Thursday to maintain strict production limits on the grounds that prices were fair for both OPEC and big oil-consuming countries.

White House spokesman Ari Fleischer refused to comment directly about the OPEC action, but he said the interest in OPEC's decisions indicates the need for a new U.S. energy policy promoting domestic drilling.

"The very fact that people wonder what the impact of OPEC will be on America underscores the need for America to develop more of its own resources and energy, do more conservation, and that way America can have better protection for its energy independence," Fleischer told reporters.

Lawmakers on Capitol Hill took a less diplomatic approach on the effects of OPEC's decision.

"The (gasoline) price to the American consumer will go up. The price of oil will go up," said Republican Sen. Frank Murkowski of Alaska.

Murkowski said OPEC's decision shows the United States must reduce its dependence on Middle East oil, which he said was "controlled by those countries that basically have funded terrorism."

The lawmaker had harsh words in particular for Iraqi leader Saddam Hussein, who he said uses oil to threaten the United States.

"Let's be clear - the world's sixth largest exporter of crude oil wants to use oil as a weapon to finish what was started on Sept. 11. He wants to try to bring our economy to its knees," Murkowski said.

Republican Sen. Conrad Burns of Montana also slammed OPEC's decision, saying the cartel only acts in its own interest.

He said the United States should stop providing oil revenue to OPEC members Saudi Arabia and Iraq, which he said the countries used to support terrorist activities.

"Basically, we're giving them the money to blow us up," Burns said.

Senate and House negotiators met again Thursday to work on a broad energy bill designed to promote domestic production, encourage conservation and develop alternative energy sources.

On Wednesday, Interior Secretary Gale Norton told Reuters that she would recommend the president veto an energy bill that did not include opening the Arctic National Wildlife Refuge to oil companies. Democrats oppose drilling in the Alaskan refuge, citing potential environmental damage, while Republicans say the vast wilderness could be safely developed for oil rigs.

Fleischer declined to say if President George W. Bush would veto an energy bill without the Alaska drilling provision, saying only that the president was continuing to work with lawmakers.

"The president thinks it's even more important now than ever for the Congress to pass legislation that maximizes America's energy independence," he said.


REUTERS NEWS SERVICE



© 2008 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Reuters.
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