ENERGY ANALYST PROPOSES U.S. OIL TARIFF
Energy analyst Edward Krapels said
the United States should consider an oil tariff to keep U.S.
dependence on imports below 50 pct.
    "On the supply side, the argument in favor of a contingent,
variable import tariff is most persuasive," Krapels, president
of Energy Security Analysis, Inc said in a statement at a House
Energy and Power subcommittee hearing.
    "An optimal tariff would be one implemented only if the
international price of crude oil falls below, say, 15 dlrs a
barrel. On the demand side, the obvious policy is an excise tax
on transportation fuels," Krapels said.
    But William Johnson of the Jofree Corp disagreed with the
oil tariff proposal, saying Congress should remove price
controls on natural gas, repeal the windfall profits tax on oil
companies, allow exports of Alaskan oil and provide tax
incentives for U.S. oil production, or, at the least, preserve
exisiting tax incentives for drilling. He also urging filling
the Strategic Petroleum Reserve at a faster rate.
    Richard Adkerson of Arthur Andersen and Co told the
subcommittee oil imports were expected to increase because
funds for exploration and development of domestic oil sources
cannot now be economically justified due to low oil prices.
 Reuter
