FT.com site; Jan 22, 2001
BY NANCY DUNNE IN WASHINGTON AND KEN WARN IN OTTAWA



President George W. Bush intends to move swiftly to implement a national energy
policy, which would open the National Wildlife Refuge to oil and natural gas
drilling, his spokesman said on Monday.

"We'll push ahead to develop 8 per cent of the Arctic National Wildlife Refuge,"
said Ari Fleischer, White House spokesman.

He was referring to the 1.5m-acre coastal plain, which straddles the border been
Alaska and the Yukon.

The drilling is fiercely opposed by environmentalists. It is also unpopular in
Canada, where David Anderson, the environment minister, has vowed to oppose
exploration.

The refuge provides a calving ground for 200,000 caribou, which roam back and forth
over the border.

Canadian sensitivities could be important to Mr Bush's plan to set up a common
market in energy in North America.

There are concerns that the new president will be much more focused on relationships
with Mexico and Latin American than Canada.

Canada will be reluctant to jeopardise its relationship with the new administration
over the Arctic, at least initially. It plans to move diplomatically to encourage
other drilling sites.

Environmentalists will wage war on legislation to open the reserve.

"The only real solution is energy efficiency and energy conservation, and these
people have been opposed to both of those steps," said Arlie Schardt of
Environmental Media Services.

"It seems unnecessarily self-defeating to ignore the obvious desire of Canada to
protect that region."

Although publicly dedicating his first week in office to a relatively
uncontroversial push for oil, Mr Bush met on Monday with his new energy secretary,
Spencer Abraham, and other appointees to discuss options available for the
California's power crisis.

"The president continues to believe that the issue is mostly a California matter
dealing with the legislation that is before the state," Mr Fleischer said.

"We are, of course, concerned about any energy problems that take place in our
nation's largest state. Having said that, the real solution long term is to enact
President Bush's comprehensive energy policy."


Copyright ) Financial Times group


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