Administration Position on Oil Exploration

Your editorial (Dec. 15), “Oil Patch Asks for Help,” accurately points out that America’s increasing reliance on imported oil invites future energy shocks that could severely jolt our nation. This danger should be of special concern to Californians because the state imports a considerable amount of its oil and because future energy crises almost certainly would devastate key California industries such as travel and tourism.

However, I want to clarify one point: the Reagan Administration is aware of the issue.

It has been President Reagan’s policy from Day One to encourage environmentally sound exploration and development of domestic resources to avert future international energy crises such as those in the 1970s. As you mentioned, many of the misguided regulations of the previous administrations were withdrawn so America’s oil industry could do its job better, and thus better serve the national interest.

Both as secretary of energy, and presently as secretary of the Interior, I have spoken out often and at length about the devastating effects OPEC market manipulations are having on America’s domestic energy industry. During the summer, President Reagan directed those of us involved in oil-related federal programs and regulations to take whatever administrative steps we could to remove unnecessary burdens to prevent loss of domestic production. A number of actions have been taken, including suspension of production requirements on marginal wells on federal lands so such wells would not be plugged permanently. We offered lease extensions for some offshore tracts in the Gulf of Mexico where exploration was delayed while new regulations for drilling permits were being redrawn by the Environmental Protection Agency.

President Reagan urged congressional action to decontrol natural gas prices, to end the windfall profits tax, to take other legislative actions that would make it easier for the oil industry to play its vital role in assuring the future security of the nation.

The President also has appointed a high-level interagency task force to examine the national security implications of increasing reliance on imports as domestic production declines. The findings of this task force, along with its recommendations, are due early in 1987.

President Reagan is opposed to an oil import fee, or any new tax. Congress has demonstrated little support for any such action. The “Oil Patch” itself is divided. Even those who in desperation are calling for an import fee have not reached a consensus on how much they think it should be, and whether there should be exclusions or entitlements.

Those of us in the Administration responsible for energy policies are working together, and with those inside and outside the oil industry, in a determined search for ways to encourage exploration and development of domestic resources. We are acutely aware that the first and most important step in solving the problems of the “Oil Patch” is to make the public aware that erosion of our domestic oil industry erodes the foundation of America’s economic and national security. We applaud The Times for calling this serious situation to the attention of its readers.

DONALD PAUL HODEL

Secretary of the Interior

Washington