Gang, Senator Domenici had a meeting with us energy industry types in Hobbs, New Mexico on Saturday. Here are notes from the Meeting. Mr. Domenici makes the first public reference/acknowledgement from a federal politician that the Clinton Administration is intentionally letting the price of oil drop to fit its domestic policies, and will simply build up the military to secure greater oil imports.
Oklahoma, Louisiana, New Mexico, and parts of Texas are being savaged by the Administration's decision (I left out the statistics on tax revenue drop, drop in GNP, 500,000 new jobless claims in New Mexico alone since January 1st, etc.).... FYI... Apparently Oklahoma, Louisiana, New Mexico, and Texas will be the "sacrificial lambs" to prop up the Clinton/Gore Domestic priorities....
And don't rule out the possibility that we get dragged into a big shootout in the Middle East in the next few years over oil...
Date: Saturday, February 20, 1999
Time: 0930 to 1130
Location: New Mexico Junior College Campus
Moran Building
5317 Lovington Highway
Hobbs, New Mexico
505/392-4510
Introduction and Opening Remarks by Senator Domenici US imports 55% of current oil consumption, will import 70% by 2010 (speculation: Military will grow to defend oil imports). Present Administration is satisfied to allow oil prices to continue to drop, since inflation is controlled by the price of oil. Governor of Oklahoma called an emergency session for today because of state dependence on oil industry. Need to react quickly with business loans similar to disaster loans through Small Business Administration. Currently working a bill co-sponsored with Kay Bailey Hutchinson to extend marginal well tax credits, provide inactive well tax relief, and institute changes to the EOR tax credit. US announced that we will fill the strategic reserve, however, we will not fill out of domestic production. Secretary of the Treasury is currently working a tax “give-back” for the US steel industry, attempting a similar bill for the domestic oil industry to grant infusion of capital. “Best-guess” estimates are that current oil prices (barring action from the US Government) will last 10 years.
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