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Bush Energy Plan Calls for New Refineries, Nuclear Plants
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http://enews.voanews.com/t?ctl=D2706C:2AB91D3

In his second energy speech in a week, President Bush said lowering
energy costs means long-term moves to expand US energy production







George W. Bush

President Bush has outlined a series of proposals aimed at boosting
energy production in the United States through the construction of new
oil refineries and nuclear power plants. The proposals come as the
president faces growing public unrest over soaring energy prices.his
second energy speech in a week.

The President said lowering energy costs means long-term moves to
expand U.S. energy production. "Our dependence on foreign energy is
like a foreign tax on the American people.  It's a tax our citizens
pay every day in higher gasoline prices and higher costs to heat and
cool their homes... This problem did not develop overnight, and it's
not going to be fixed overnight," he said.

Mr. Bush is facing mounting criticism over the cost of gasoline, which
has reached record highs in the past several weeks.  Consumer
confidence also fell to a five month low in April.

His energy proposal encourages oil companies to build new refineries
on the sites of closed U.S. military bases.  The lack of adequate
refining capacity in the United States is often cited as a key reason
for high gas prices.

But, Jerry Taylor, the Director of Natural Resource Studies at the CAT
Institute, which advocates free market policies, says the proposal
misses its target.

"So when you hear that no new refineries have been built in the U.S.
since 1976, well that's true.  But they've increased production
capacity of existing refineries because it's just cheaper to do that
than to go out an build a new facility," says Mr. Taylor.

Mr. Bush's proposal would also include expanding nuclear power by
easing regulations for building new plants.  He also suggested tax
credits for consumers who buy hybrid and fuel-cell vehicles, and he
made a strong call for greater development of alternative fuel
sources.

"Technology is the ticket, is this nation's ticket to greater energy
independence," says president Bush

The president called on U.S. lawmakers to pass an energy bill in the
next few months.  The Bush administration's energy plan has been
stalled in Congress for four years. Democrats oppose drilling for oil
in Alaska's Arctic National Wildlife Refuge, and feel more subsidies
should go to renewable energy sources. Republicans want to ensure oil
producers receive tax incentives.

Mr. Taylor says both sides have it wrong. "The shared foundation of
both arguments is that we need to subsidize energy companies or
companies providing various energy services.  Why?  With energy prices
where they are, we don't need to subsidize anybody in the energy
sector. We don't need to provide any additional incentives than those
that already exist with these high prices," explains Mr. Taylor.

The White House acknowledges that even if all of President Bush's
proposals are enacted, they will not provide a short-term fix to high
gasoline prices.  But after the president promised the United States
would reduce its dependence on foreign oil, oil prices fell by more
than two dollars a barrel.


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