Washington – President Bush, under pressure to do something about high energy prices, called Wednesday for expanded efforts to harness the “transformational power of technology” to wean the nation from its dependence on oil and gas.
Bush, making his second major energy-policy address in a week, proposed several initiatives that he said would help address the supply-and-demand imbalances contributing to high gasoline and crude-oil prices in recent months.
They include government-provided risk insurance for new nuclear power plants, expanded federal authority to approve liquefied natural-gas terminals, possible construction of oil refineries on closed military bases, and a tax break for people who buy diesel-powered cars.
For Colorado, whose energy industry was estimated at $7.2 billion for 2004, any Bush energy initiatives would have little immediate impact, local experts said.
“The country will need as much natural gas as we can produce,” said Ken Wonstolen, senior vice president of the Colorado Oil and Gas Association.
As for cleaner-burning cars, Colorado offers a tax incentive for those who purchase hybrid vehicles, so a federal tax break “probably wouldn’t affect us immediately,” said Bill Barrow, president of the Colorado Automobile Dealers Association.
A national tax incentive could spur automakers to increase production of hybrid vehicles, counting on the tax discount to lure consumers, Barrow said.
Colorado energy experts said it’s unlikely a nuclear power plant or an additional oil refinery would be built in the near future.
Stan Dempsey Jr., president of the Colorado Petroleum Association, said “we probably don’t need another refinery” in the Denver area.
Xcel Energy has no plans to build a nuclear power plant here, although the company does have two such plants in Minnesota.
The company said Colorado’s abundance of natural gas and coal makes nuclear power less attractive.
For the most part, the president expressed confidence in the ability of the private sector to expand energy supplies and promote conservation through innovation, with only a modest amount of government involvement to get things rolling.
“In the years ahead, technology will allow us to create entirely new sources of energy in ways earlier generations could never dream,” Bush said. “Technology … is this nation’s ticket to greater energy independence.”
Bush’s remarks appeared to reflect a delicate political balancing act on the part of the White House.
“He’s trying to convey to the public a sense that he’s on the job, that he’s concerned about high prices … and that he’s trying to find a way to get more energy to the country as quickly as possible,” said Stuart Rothenberg, an independent political analyst in Washington.
“It’s a tough place to be if you’re a politician,” said Kim Wallace, chief political analyst for Lehman Brothers, a Wall Street company. “It’s probably tougher for this president because he’s a market-oriented president and an energy-oriented president. The sensitivities are a little bit higher.”
Speaking at a Washington conference hosted by the Small Business Administration, Bush cited a long list of administration proposals contained in the comprehensive energy strategy drafted by Vice President Dick Cheney in 2001.
He criticized Congress for not enacting his plan, and urged the Senate to begin work soon on its version of energy legislation passed by the House last week.
The House measure contains many of the administration’s initiatives.
Bush acknowledged that none of his proposals, including the new measures he outlined Wednesday, would have much immediate effect on prices at the gas pump. But he said they would help lead the way toward a more diversified energy supply and reduced U.S. reliance on foreign crude oil.
Denver Post staff writer Will Shanley contributed to this report.
58%
Portion of the 20.5 million barrels of oil used in the U.S. each day that were imported in 2004, up from a third in 1973
35
Number of nuclear power plants stopped by “bureaucratic obstacles,” President Bush said, while France built 58 reactors to account for 78 percent of its electricity
$2.20
Average price for a gallon of regular unleaded gasoline, with crude oil at $51.61 per barrel
