From Deseret News archives:

Energy woes not going away

10 panelists explore issues, dispel myths, chart future

Published: Wednesday, July 27, 2005 11:14 p.m. MDT
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The United States currently imports 63 percent of its crude oil, according to Lee Peacock, president of the Utah Petroleum Association. At current levels, the UPA predicts that the per barrel price for crude will remain above $50 through 2006.

Second, Rattie maintained that "there are no near-term alternatives to oil and gas." Even if the country had the will-power to transition to other energy sources, Rattie said alternative energy sources are decades away from being practical.

Two sources again generating some buzz — tar sands and oil shale — are plentiful in Utah, said the BLM's Kohler. The oil shale resources in Wyoming, Utah and Colorado may contain 2 trillion barrels of oil, one- to two-times the world's crude oil reserves. Utah's tar sands resources could total 11.8 billion to 12 billion barrels of oil.

But marked impediments remain before these resources can be developed, Kohler said. It would be costly (upwards of $60 per barrel, in the case of the oil shale), and there are environmental and regulatory concerns.

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Regardless, Rattie said, "We can't drill our way to less (energy) dependence, and we can't conserve our way to less dependence." He disputed the claims that the planet is running out of oil and natural gas. The supplies are there, he argued, and human ingenuity — if less encumbered by agendas and ulterior motives — can find a way to access them.

"So what do we need?" Rattie asked. More than an energy policy, Rattie recommended letting the market economy do its work — that the markets will determine how much and which type of energy to use.

Peacock added four recommendations:

• Encourage domestic oil and gas production.

• Encourage the building and expansion of domestic oil refineries.

• Encourage "moderate" environmental and regulatory policies.

• Maintain a stable tax environment.

Chris Roybal, senior economic adviser to Utah Gov. Jon M. Huntsman Jr., said the administration is putting together its energy initiative and this week will announce a new energy adviser.

"We only want to play a role that is appropriate for government, and then hopefully get out of your way," Roybal said. "We do believe that energy could really have a profound effect on economic development. We think there's a lot of opportunity for job creation and capital investment, really across the board. Not just in the traditional oil and gas sense, but also in light of some of these new technologies. Over time, we believe they can be a significant economic development tool to the state of Utah."


E-mail: jnii@desnews.com

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