UPDATE - Cheney says US will rely on oil, coal
Date: 01-May-01
Country: CANADA
Author: Lesley Wroughton
Speaking to newspaper publishers in Toronto on what he joked was a rare venture away from Washington, Cheney outlined America's energy problems and gave a hint of the recommendations he is to make soon to President George W. Bush on how to cope with power shortages like those that have triggered rolling blackouts in California in recent months.
"America's energy challenges are serious, but not perplexing," he told the annual meeting of the Associated Press. "We know what needs to be done, we've always had the ability, we still have the resources."
Cheney is heading a task force to examine the extent of the U.S. energy woes and prepare a strategy to deal with them. His report is expected to be released as early as mid-May.
Suggesting that California - and a botched program of energy sector deregulation - could set a precedent for the rest of the nation, Cheney said communities in parts of the Northeast, could face power shortages this summer.
He said by one estimate rising fuel prices cost the economy at least $100 billion in 1999 alone.
The problem is deep and wide: Two decades from now, the United States will rely on foreign sources for 64 percent of its oil, compared to 56 percent today, and by 2020, natural gas demand will rise by two-thirds, he said.
What is more, he added, electricity needs will be such over the next 20 years that just meeting projected demand will require between 1,300 and 1,900 new power plants. "That averages out to more than one new plant per week, every week, for 20 years running," he said.
Cheney said alternative sources of fuel in the future may prove to be much more plentiful but "we are not yet in a position to stake our economy and our own way of life on that possibility."
He said Alaska's Arctic National Wildlife Reserve, which environmentalists view as America's last great unspoiled wilderness, can be tapped for oil without disrupting the vast majority of the 19 million acre (7.6 million hectare) reserve.
"The amount of land affected by oil production would be 2,000 acres," he said. "The notion that somehow developing the resources in ANWR requires a vast despoiling of the environment is probably false. This is one reason why the overwhelming majority of people who live in Alaska support developing this resource in their home state."
Canada is wary about opening up the Arctic reserve for energy development because of potential environmental problems. U.S. officials deny the charges.
Cheney said coal remained the cheapest primary source for electric power generation and will continue to be so for years to come. "To try and tell ourselves otherwise is to deny blunt reality," he said. "Coal is not the cleanest source of energy, and we must support efforts to improve clean-coal technology to soften its impact on the environment."
Cheney said nuclear power should not be overlooked. The government has not granted a single new nuclear power permit in more than 20 years and many plants are expected to close.
The nuclear industry is beset by safety concerns and there is no clear idea how to safely store radioactive spent fuel.
Cheney, whose heart troubles have raised concerns about the stress of his job, told his audience during a question-answer session that he was feeling "very well" and had even considered doing jumping-jacks on stage to demonstrate his good health.
He said that if he ever felt his health was in danger he would resign his post. "If ever I get to the point where my doctors believe that it is not wise or prudent to continue in this capacity, obviously I would step aside," he said.
Cheney said he was confident that Bush would attain his goal of a $1.6 trillion tax cut, possibly more.
"We will end up when we get through with something about that level, but exactly where that will be will be subject for negotiations with Congress," he said.
(With additional reporting by Steve Holland in Washington).