Energy bills fuel congressional strife

With the economy and gasoline prices a high-octane source of political anxiety, congressional Democrats pushed legislation Thursday aimed at oil companies and speculators, which they have targeted as culprits.

The bills, many with catchy names, are unlikely to become law. But that may not be the point.

Looking ahead to the presidential election, lawmakers from both parties are stepping up efforts to highlight their differences, especially on energy policy.

As President Bush presses for an expansion of domestic oil drilling, the Democratic-controlled House took up a bill called the Drill Responsibly in Leased Lands (DRILL) Act, aimed at forcing oil companies to use millions of acres already under lease. In the face of a White House veto threat, the bill fell short of the two-thirds vote needed for passage under rules set for the bill. But Democrats could try again under a process that requires only majority support.

Meanwhile, in the Senate, Democrats pressed ahead with a bill targeting investors who make money speculating in oil markets.

GOP lawmakers, for their part, planned a trip this weekend to Alaska’s Arctic National Wildlife Refuge to spotlight what they call Democrats’ failure to promote domestic energy production. Republicans have their own bill, the No More Excuses Energy Act.

The House vote came days after Bush lifted a long-standing White House ban on new offshore drilling in an effort to turn up the heat on Congress to end its ban, in place for more than two decades.

But Democrats contend that before new areas are opened to drilling, the oil industry should use areas already under lease. The “use it or lose it” measure, as it’s been called, would force oil companies to show that they’re “diligently” developing existing leases before getting new ones.

“We’re saying in this bill, ‘Drill, drill, drill,’ ” said Rep. Nick J. Rahall II (D-W. Va.).

Added House Majority Leader Steny H. Hoyer (D-Md.): “Let them start on the land they already have. Let them eat their vegetables before they even think about having dessert.”

Republicans accused Democrats of using the bill for political cover to escape an anti-production record. “This is snake oil,” said Rep. Lynn Westmoreland (R-Ga.).

The White House, in a statement, said it was “unimaginable” that, with gas prices at historic highs, Congress would consider legislation further restricting oil exploration.

Jeff Eshelman of the Independent Petroleum Assn. of America, a trade association for oil and gas producers, called the measure “an attempt to draw attention away” from new drilling and said many existing leases are not likely to be productive. “With today’s high prices, if there was oil under those leases, we’d be drilling in a timely manner,” he said.

On the other side of the Capitol, Senate Democrats and Republicans also sparred over energy policy.

In the Senate debate on speculators, Democrats called for a crackdown, including increased staffing at the Commodity Futures Trading Commission.

“I’m sure that most Americans are far more worried today about the size of their bill at the gas station than they are the futures market or the derivatives market or hedge funds or margin requirements,” said Sen. Patty Murray (D-Wash.). “But what they may not know is that those things are directly linked together.”

Republicans said the Stop Excessive Speculation Act should be expanded to address supply questions.

“It is an amazing thing to me to see that we have an energy issue in our country and the first big step that we take to deal with it is to focus on speculators,” said Sen. Bob Corker (R-Tenn.).

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richard.simon@latimes.com