U.S. ENERGY CHIEF SEES PROMISE IN OIL-TAX CHANGE
Energy Secretary John Herrington
said his proposed option to raise the oil depletion allowance
to 27.5 pct was probably the most economically promising way to
spur domestic production.
    The White House has said it would consider the option
although it was generally opposed to any revisions in the new
tax code.
    Herrington told a meeting of the Mid-Continent Oil and Gas
Association that the higher depletion allowance on new oil and
enhanced oil recovery would cost taxpayers about 200 mln dlrs a
year.
    The option was one of many contained in a report on oil and
the national security the Energy Department sent to the White
House on Tuesday.
    Herrington said of the increased depletion allowance
option: "that is one that could significantly increase
production at a very low cost to the American taxpayer."
    He again rejected an oil import fee as far too costly to
the overall U.S. economy.
 Reuter
