Energy Legislation Uncertain

Lawmakers are scheduled to leave shortly to campaign for the upcoming elections, but before they do that a lot of work needs to be done. Top of the agenda, before the Wall Street Crisis hit, was energy policy-- especially the status of offshore oil and gas drilling.

The agenda is getting full and time is getting short. Congress must pass budget legislation to continued federal spending beyond the September 30 end of the fiscal year. A continuing resolution is most likely. Congress must also address the $700 billion proposed bailout for Wall Street and the current liquidity crisis. Will there be time left to deal with energy?

Probably not. The Senate had been working with the "Gang of 20" on comprehensive energy legislation. But that now looks dead until after the elections. Coastal drilling bans are often renewed annually in federal spending bills. A full renewal of the ban is unlikely given current economic pressures. Democrats have conceded that more drilling is probably necessary. Most likely the status of oil and gas drilling will be addressed in the next Congress.

That means the new president will influence the potential direction of the policy. Sen. John McCain (R-Ariz.) has made support for new offshore drilling a major campaign theme. Sen. Barack Obama (D-Ill.) has criticized the idea but indicated he is open to some expansion as part of a larger energy compromise.