FROM BEN MACINTYRE IN HOLLYWOOD, MARYLAND AL GORE sought to head off a looming threat to his presidential campaign yesterday with a call for President Clinton to ease spiralling oil prices by tapping into America's huge oil reserves, a policy that puts him on a collision course with some of the Administration's top economic advisers. The rocketing cost of home-heating oil could provoke a backlash against the White House with a knock-on effect on the Vice-President's electoral chances, particularly in the oil-dependent northeastern and midwestern states. Speaking at an oil distribution depot in Maryland, Mr Gore proposed releasing "batches" of five million barrels of oil from America's Strategic Petroleum Reserve, the world's largest emergency stockpile containing 570 million barrels of crude oil. The White House said that the proposal was among several options being considered, but Mr Gore's statement makes it virtually inevitable that President Clinton will now take the controversial step of releasing extra oil. But Laurence Summers, the US Treasury Secretary, has vigorously rejected such a move. In a sharp memo to Mr Clinton written earlier this month and obtained by The Wall Street Journal, he gave a warning that any attempt to drive down prices by opening up the oil reserve to increase supply "would be a substantial policy mistake". He added that Alan Greenspan, the Chairman of the Federal Reserve revered as a prime architect of America's boom, agreed with this view. Mr Summers, who has been tipped to continue in his job if Mr Gore wins, said that it would "set a dangerous precedent" if the strategic reserve was used to "manipulate prices" instead of its original purpose, as a stockpile to tackle sudden shortages. George W. Bush, the Republican candidate, countered that America should lean on foreign suppliers to provide more oil. "We need to use our strong hand in diplomatic circles to make it clear to our friends overseas that we don't want them holding our nation and our consumers hostage," he said. Mr Gore also challenged oil companies to stop profiteering, urged Opec to honour their agreement to increase oil production and portrayed himself as the defender of middle-class consumers against rising oil and petrol prices. "Crude oil prices are at a ten-year high, while the big oil companies have seen their profits increase by two to three times in the past year," Mr Gore said. "One of the central choices we face in this election is whether we will have a President who's willing to stand up to big oil interests and fight for our families. That's the sort of President I intend to be." The Vice-President has repeatedly depicted Mr Bush and his running-mate Dick Cheney as wealthy former oil company executives in hock to "big oil". Mr Gore proposed several "swaps" of oil from the reserve, with more releases if prices do not stabilise. Under this system oil from the reserve would be released to the oil companies, which would eventually repay in oil, plus interest, also in kind. The reserve, stored in four, vast, underground containers in Louisiana and Texas, was created in the 1970s to prevent any future disruption to the US oil supply after the Arab oil embargo. The US has sold oil from its reserve only once, during the Gulf War. Bill Richardson, the Energy Secretary, said the price of crude oil, which is nearly $38 (�27) a barrel for the first time in a decade, was "dangerously high". Mr Bush has opposed using the reserve to "alleviate political pressure" and congressional Republicans attacked the White House for its failure to prepare for the current crisis. Heating oil is already 50 per cent more expensive in the US than it was one year ago. Some of the swing states in the election, such as Pennsylvania, Ohio and Michigan, are also northern and cold, and if millions of families face soaring heating bills this winter the effect on the race may be dramatic. _______________________________________________ Crashlist resources: http://website.lineone.net/~resource_base To change your options or unsubscribe go to: http://lists.wwpublish.com/mailman/listinfo/crashlist
