Bode calls on senators to secure energy policy

Journal Record, The (Oklahoma City), Oct 23, 2001 by Ray Carter The Journal Record

Warning that a national energy policy is "more important than ever" in light of the war in Central Asia and tensions in the Middle East, Denise Bode, chair of the Oklahoma Corporation Commission, urged Oklahoma's U.S. senators to fight for passage of a national energy policy.

In a letter sent to Sens. Don Nickles and Jim Inhofe, Bode (right) noted that the pressure to create a national energy policy has eased in recent months "as California's rolling blackouts faded in our memories and gas prices eased," but warned that the reliability of oil supplies "will be tested" in the ongoing war on terrorism.

Bode noted that the U.S. State Department is discouraging travel to five of the 11 Organization of the Petroleum Exporting Countries and said "the fact that we depend on this region for much of our oil is alarming."

She noted that the United States now receives 60 percent of its oil from foreign sources.

On the domestic front, although prices of gasoline and natural gas have fallen dramatically in recent weeks, Bode said that situation could mean very high price spikes again in the future.

"The low energy prices of today could result in skyrocketing prices in the near future, as current exploration and development efforts as well as needed investment in pipelines, refineries and other elements of our domestic energy infrastructure are hindered by price and policy, thus setting the stage for another shortage," Bode said.

The possibility of supply disruptions from the Middle East, coupled with a wildly swinging domestic market, could have devastating implications for the United States.

"All this is to say we need our energy bill passed yesterday," Bode said.

She urged federal lawmakers to include a "safety net from taxation" to encourage continued domestic production, similar to the measure included in the energy bill that passed the U.S. House of Representatives.

"Oklahoma has done its part in reducing taxation, foregoing tax revenues to keep Oklahoma production alive during hard times for the good of the whole country," Bode said. "Federal tax relief is also appropriate."

She also stressed the need for weatherization programs to help the poor deal with the wild energy prices swings that Americans "are likely to face until we rebuild our domestic energy infrastructure." Bode noted that low-income Oklahomans who want their homes weatherized through programs offered by the Community Action Agencies of Oklahoma often face a three-year wait.

Bode said the lack of a national energy policy and declining levels of domestic production have indirectly aided the enemies of the United States.

"There is a horrible irony about the failure to maintain a strong domestic energy infrastructure -- one that was given horrible weight on Sept. 11," Bode said. "The numbers tell the story: In April of this year, Oklahoma producers sold 185,000 barrels of oil a day. American dollars went to Americans. But in that same month, America used 862 thousand barrels a day of oil from Iraq alone. American dollars went to those who support the kinds of acts we saw on Sept. 11. As a result of our failure to do something about crumbling domestic energy infrastructure, Americans are helping to fund acts of war against themselves. Can there be anything more tragic?"

To some degree, Bode was singing to the choir. On his Senate Web site, Nickles critically notes the country's dependence on "several rogue nations" as a source of oil.

"I am working to open less than 1 percent of the 60 million acres in the Arctic Nation Wildlife Region to recover a portion of the estimated 11.6 billion barrels of oil, but also to develop new forms of energy production," Nickles said.

Earlier this month, Inhofe declared that U.S. dependence on foreign oil "is a serious national security issue" and praised President Bush for urging passage of an energy bill this year.

Inhofe had earlier tried force a Senate vote on the House version of the energy bill by attaching it to the Defense Authorization bill in the form several amendments. Inhofe later backed down, agreeing to delay action on the energy proposals once Senate leaders agreed to address energy issues in the near future.

Inhofe has noted that Bush personally praised the House version of the energy bill when speaking to reporters this month, saying energy independence is an "integral piece of homeland security."

Inhofe cited those comments when defending his efforts to force a vote on energy policy.

"From my perspective, his (Bush's) words completely discredit those commentators who, a week ago, were disparaging my efforts, claiming I was acting selfishly at the expense of the president's agenda," Inhofe said in a release issued Oct. 12.

Inhofe also noted that Deputy Secretary of Defense Paul Wolfowitz said that U.S. dependency on foreign oil "is a serious strategic issue" when questioned by Inhofe at a hearing of the Senate Armed Services Committee.

"The possibility of taking that oil off the market and doing enormous economic damage with it is a serious problem," Wolfowitz said.