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Subject: energy Wed, May 20 1992
Date: Wed, 20 May 92 05:20:57 EDT
Message-ID: <ns.energy.1992May20.052057@AmeriCast.com>

05-20 0000
DECISIONLINE: Energy
USA TODAY Update
May 20, 1992
Source: USA TODAY:Gannett National Information Network
    
DRILLING FIGHT THREATENS BILL:
   As the House opens debate on an energy strategy bill Wednesday, 
the question of whether to open new coastal waters to offshore oil 
and gas drilling is proving to be a most divisive issue. Sponsors 
of the bill, which embodies the idea that more drilling is needed 
to cut U.S. dependence on foreign oil, have asked for a limit on 
the number of amendments that anti-drilling forces can propose.
(For more, see special Drilling package below.)
    
GASOLINE NOT MOVED BY INFLATION:
   The average price of a gallon of self-serve unleaded regular 
gasoline would be noticeably higher if prices had kept up with 
inflation, according to the American Automobile Association and 
USA TODAY research. The 1982 price of $1.26 per gallon would be 
$1.85 in 1992. Instead, it's $1.14.
    
PRICE OF GAS JUMPS:
   The average price of gasoline at the pump went up this week, 
but it's cheaper going into the Memorial Day weekend compared to 
the 1991 holiday, the American Automobile Association said 
Tuesday. The national average price for a gallon of self-serve 
regular unleaded was $1.139, up 1.8 cents since last week but 2.2 
cents cheaper than a year ago, the auto club said.
    
OIL PRICES FALL ON PROFIT-TAKING:
   Oil prices dropped Tuesday when traders sold to lock in 
profits, Iraq tried to resume its role as an OPEC exporter, and 
anxiety rose over a possible supply increase. On the New York 
Mercantile Exchange, the price of benchmark light sweet crude for 
June delivery fell 40 cents a barrel to $20.12. The July contract 
fell 36 cents a barrel to $20.35.
    
REFINED PRODUCTS WEAKEN:
   Refined petroleum products prices weakened Tuesday at the 
Mercantile Exchange. Home heating oil for June delivery fell .96 
cent to 56.15 cents a gallon. Wholesale unleaded regular gasoline 
for June delivery fell .96 cent to 62.01 cents a gallon. Natural 
gas, which frequently bucks the trend, settled at $1.751 per 1,000 
cubic feet in the June delivery contract, up 7.3 cents.
    
OPEC GATHERS TO DISCUSS CEILING:
   OPEC ministers began gathering in Vienna, Austria, Tuesday for 
talks over how much oil production should increase. Saudi Arabia 
was expected to press for a 1 million-barrel daily increase in the 
cartel's summer output ceiling. But Iran and Algeria likely will 
be in opposition, arguing that prices are too low. The ministers 
will set pricing and output guidelines for the July-September 
quarter.
    
JAPAN INTERESTED IN ENERGY TAX:
   Japan has expressed "clear interest" in the European 
Community's proposed tax on energy to combat global warming, while 
the USA continues to rule out fiscal means to reduce carbon 
dioxide emissions, EC Environment Commissioner Carlo Ripa di Meana 
said Tuesday. The EC has proposed a $10 per barrel of oil tax by 
2000, levied half on energy value and half on carbon content.
    
HALLWOOD NET DOWN IN QUARTER:
   Hallwood Energy Partners L.P. said Tuesday that lower oil and 
gas prices cut into first quarter profits. Net income in the 
quarter was $657,000, or 8 cents per unit, vs. net income of 
$1,885,000, or 23 cents per unit, a year ago. Oil and natural gas 
prices averaged $20.27 per barrel and $1.49 per mcf, respectively, 
in the quarter, vs. $22.39 per barrel and $1.63 per mcf a year 
ago.
    
SPECIAL PACKAGE ON DRILLING:
    
MOST WATERS HAVE TEMPORARY BANS:
   The Bush administration wants to promote new drilling in waters 
off the mid-Atlantic states, throughout the eastern Gulf of 
Mexico, and along parts of the Alaskan coast. Congress, driven by 
regional interests, generally has bowed to lawmakers seeking bans 
on new exploration off their constituents' coastlines - a trend 
that has put most U.S. waters temporarily off-limits to drilling 
rigs.
    
BOTH SIDES PREPPING FOR BATTLE:
   Both sides of the drilling issue are gearing up for a battle 
royal. "A great mistake would be made here if we opened Pandora's 
box" and allowed drilling foes to bog down debate with unlimited 
amendments, said Rep. Norman Lent, R-N.Y., a member of the Energy 
and Commerce Committee, which drafted the bill. Opponents of 
offshore drilling argue that it poses the threat of oil spills.
    
BANS ALONG ALL COASTS PROPOSED:
   Opponents of offshore drilling have proposed amendments to the 
energy bill that would bar new exploration along virtually all of 
the U.S. coastline, except the central and western Gulf of Mexico. 
Similar amendments were proposed with marginal success when the 
Senate passed its version of the bill. Coastal state lawmakers won 
bans on exploration along most of the Atlantic and Pacific coasts.
    
BUSH WANTS DRILLING:
   Whatever energy bill comes out of the House will have to be 
reconciled with the Senate version. Drilling foes want strict 
drilling restrictions in the House bill to assure that the 
legislation ultimately sent to President Bush outlines a strict 
anti-drilling policy. If they succeed, however, it is unlikely 
Bush will sign the bill into law.
(End of package.)
    
Energy Editor: William Snoddy. (1-919-855-3491) Making copies of 
USA TODAY Update (Copyright, 1992) for further distribution 
violates federal law.
    

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