U.S. Interior Secretary DonaldHodel said he does not support an oil import fee as a means to
stimulate domestic oil and gas production.
    "I am an advocate for incentives for exploration," Hodel
said, but added, "I do not favor an oil import fee."
    "It would inject the federal government so deeply back in
to the process, we would never get the government out again,
and I think that would be in the long term disinterest of the
nation," Hodel said in an address to a group of local business
executives.
    Earlier today, Congressmen from oil producing states
introduced a bill that would impose a fee on oil imports.
    Hodel said he supports drilling incentives, such as repeal
of the Windfall Profits Tax and Fuel Use Act and deregulation
of natural gas.
    The secretary also said oil and gas exploration offshore
California and in the Artic National Wildlife Refuge is
necessary to prevent the U.S. from becoming too dependent on
foreign supplies of oil for its energy needs.
    Failure to approve such exploration, Hodel said, would lead
to greater U.S. dependence on foreign sources of oil.
    "In the next two to five years, no matter what we do today,
we are very likely to find the U.S becoming 50 pct or more
dependent on imports for its oil requirements," Hodel said.
    If OPEC were to raise oil prices sharply, Congress would
likely act to have the federal government fix gasoline prices
and allocate supplies, Hodel said.
    "If they allocate supplies you and I, in the same
two-to-five year time frame, could well find ourselves sitting
back in gas lines," Hodel said.
    Exploration for oil and gas in offshore areas and in the
Arctic National Wildlife Refuge would not jeopardize
environmentally sensitive areas, Hodel said.
    "We are convinced we can meet and resolve every
environmental concern that is raised," Hodel said.
 Reuter
