Sunday January 28, 2001 While California fumbles in semi-darkness, George W. Bush has come up with a seemingly simple solution to America's wider energy needs - drill for more oil. He is in favour of granting licences for drilling in the unspoilt wilderness of the Arctic National Wildlife Refuge in Northern Alaska, home to herds of wild Caribou and Polar bears. Last week White House spokesman Ari Fleischer said opening up 8 per cent of the 1.5-million-acre coastal plain would form part of a strategy to 'protect America's energy security'. Environmental groups are gearing up for battle. Athan Manuel of the US Public Interest Research Group (PIRG) says: 'Conservation groups are going to fight this all the way. It will be the biggest environmental issue of the Presidency.' Alaska may seem far from the UK. However, scrutiny of the companies involved and how they - legitimately - play the Washington game shows that the US-UK special relationship is founded on business as well as politics. Alaska is synonymous with four oil companies: ExxonMobil, Chevron, Phillips Petroleum - and our very own BP. Manuel points out that BP dominates the land nearest to the refuge. A licence to drill there would give access to an estimated 3.4 billion barrels of oil at a relatively low investment for BP. Most of Alaska's 'North Slope', where the refuge lies, has been opened to big oil. But companies which want to exploit the refuge have previously come across opposition at the very top. In 1995, Bill Clinton twice vetoed budget proposals drawn up by congressional Republicans which included revenues from oil in the Arctic refuge. But the oil companies have lobbied assiduously. Arco - the US company with Alaskan interests which BP bought for $28.6 billion last year - donated $2.3 million to the Republican party, between 1992 and 1999. Because BP is a dominant Alaskan player, it had to sell Arco's Alaskan assets to Phillips for $7bn to gain regulatory approval. Phillips' interests in Alaska will be pressed strongly in the White House. Bush has appointed two of the company's senior officials - Don Duncan and CJ Silas - as transitional policy advisers. For its part, BP has played a forceful hand, legitimately lobbying influential Alaskan Republicans. It paid into campaign funds for Alaskan senators Frank Murkowski and Ted Stevens, along with Mississippi senator Trent Lott, known to favour development in the refuge. It also gave $12,000 to Republican representative Don Young and $2,000 to the Bush presidential campaign. Between 1997 and 1999, BP also contributed $90,000 to an organisation called Arctic Power - a group set up to lobby congress to open up the refuge. Nevertheless, BP faces opposition. PIRG and other environmental groups are filing a shareholder resolution to try to stop the company drilling. Manuel says: 'The Arctic is one of the last unspoilt places on Earth. We don't think it is worth devastating that for six months of oil.' Observer _______________________________________________ Crashlist website: http://website.lineone.net/~resource_base
