Washington briefs

Patrick Crow
Washington, D.C.
[email protected]

Congress left town last month without acting on the major energy issue of the session: decontrol of the retail electricity marketplace.

That was no surprise, for few expect this Congress to agree on a bill.

James Hoecker, Federal Energy Regulatory Commission chairman, explained, "The special interest fog machines in Washington seem to be working overtime, obscuring the central fact that Congress needs to participate in plotting a course for electric industry restructuring, rather than second-guessing it at a later time."

He said Congress is "mired in issues that are either not worrisome or that will resist easy resolution for some time.

"For instance, it is focused on whether the states would retain authority to regulate retail markets if they were open to competition-a matter not fundamentally in dispute. In my mind, the main source of substantial doubt is whether states are willing to expose distribution utilities to competition."

He said Congress is mulling whether certain industry sectors enjoy tax subsidies that will skew competition and may seek to use restructuring as a vehicle to address air quality issues or global warming.

"Such issues are very important, yet they exist at the margins of what restructuring ought to be about at this stage of the process."

Three presidents

It was odd that all three major oil and gas associations in Washington were searching for new presidents about the same time this year (OGJ, Sept. 22, 1997, p. 34).

More oddly, all three groups have bypassed experienced people within their ranks and have gone outside the industry to find leaders.

The Independent Petroleum Association of America hired Gil Thurm, formerly a National Association of Manufacturers vice president.

On Oct. 1, Red Cavaney, former American Plastics Council head, took over as American Petroleum Institute president.

And in September, David Parker became American Gas Association president. He formerly led the Aluminum Association.

The new appointees may not know much about oil and gas, but they are skilled at building teams within associations and coalitions outside them.

And they face fewer specific oil and gas issues than general issues such as global warming and taxes.

Peña's progress

Meanwhile, Energy Sec. Federico Peña has shown you don't need to be an oil and gas expert to make your mark on the industry.

He recently returned from the Caspian region, where he pushed the administration's argument for multiple oil and gas export pipelines, as long as none take the most logical route-through Iran.

Peña won the support of five key nations for a pipeline corridor from Baku to Ceyhan. International oil companies will pick the final route next year, and economics will weigh more heavily in their decision than politics.

But the trip underscored Peña's strong points. He is articulate, a quick learner, and an adept politician.

Unfortunately, his department affects oil and gas firms only marginally. It's too bad he isn't Secretary of the Interior, where he could really do the industry some good.