Statement of Robert W. Gee
Nominee for Assistant Secretary for Fossil Energy
U.S. Department of Energy
to the
Committee on Energy and Natural Resources
U.S. Senate
March 4, 1999

Mr. Chairman, Senator Bingaman, and other Members of the Committee:

I am honored to appear before you today as the President's nominee for Assistant Secretary for Fossil Energy at the Department of Energy. I am pleased that the President and Secretary Richardson have asked me to assume this new role in the Department and to head a program which I believe to be extremely important to the future energy security and economic vitality of this country.

I want to thank you, Mr. Chairman, and your staff for moving forward expeditiously with my nomination. I have appreciated the opportunity to meet with some of you to discuss the many important issues facing the Fossil Energy Program, and I look forward to meeting with other Members of the Committee in the near future.

If confirmed for this position, I am committed to working closely with you, Mr. Chairman, and with the Members and staff of this Committee in my new responsibilities. Together, we have remarkable opportunities, through the initiatives in the Fossil Energy program, to shape a future in which our Nation's primary energy sources remain affordable and, at the same time, contribute to the environmental progress and economic growth of this country and much of the world. If we are successful, the benefits will accrue not only to our current population but to future generations well into the 21st century.

Mr. Chairman, I bring to this position more than two decades of professional experience focused on the energy industry in the public and private sectors. When I appeared before this Committee in September of 1997, as the President's nominee for the Department's Assistant Secretary for Policy and International Affairs, I described my background as a former attorney with the Federal Energy Regulatory Commission, an in-house attorney for a major oil and gas company, and the former Chairman and a Commissioner for the Public Utility Commission for the State of Texas.

Today, I can add to that the experience gained from more than a year as the primary policy advisor to the Secretary and the Energy Department on national and international energy matters and on Departmental strategic planning.

From these experiences, I recognize -- and fully appreciate -- the crucial role that fossil fuels play in our economy.

Our nation enjoys vigorous economic growth largely because we have access to abundant supplies of low-cost coal to generate more than half of our electricity. We have plentiful supplies of natural gas to fuel more than a quarter of our overall energy needs. And even recognizing the serious financial difficulties now confronting many of our domestic producers, we remain the second largest producer of oil after Saudi Arabia. Moreover, for every barrel of oil produced by our domestic petroleum industry, there remain two barrels in the ground yet to be recovered.

In short, Mr. Chairman, the United States remains an energy-rich nation, and I firmly believe that the benefits of our fossil energy resources - affordable prices, a stronger economy, greater employment, and a contribution toward improved global prosperity - can be realized at the same time we dramatically improve our environment.

I recognize that these are challenging times for any person associated with the Nation's fossil fuel industry, especially today in our oil sector. While most of the country is reaping the economic benefits of a booming economy, those struggling in the Nation's oil patch face a much different situation. We at the Department recognize the difficulties confronting this vital segment of our energy industry. We also recognize the serious threat to our Nation's energy security posed by this situation.

In response, last December, Secretary Richardson appointed an internal task force to assess the effects of low oil prices on domestic production and to develop ways we can protect the production capacity of our domestic oil and gas industry. I have had the privilege of heading this task force, and as you and other Members are aware, we have been able to announce several initiatives in the past three weeks that represent a good start in several strategic areas.

Many initiatives recommended by the task force will be implemented by the Office of Fossil Energy. Several deal with developing and deploying advanced technology. I am a strong believer in the need to sustain technological progress throughout all of our energy industry.

Already, in my acting capacity in the Office of Fossil Energy, I have seen technology in the R&D "pipeline" that could lead one day to a virtually pollution-free power plant. I have seen the prospects for ultimately capturing and disposing of greenhouse gases. I have seen technological advances that can reveal new oil and gas deposits and produce them more effectively and in an environmentally safe manner.

These are exciting prospects, Mr. Chairman. They are prospects that the Office of Fossil Energy - in partnership with industry, universities, national laboratories, and State agencies - is pursuing and making significant progress in achieving.

If confirmed, I believe that my background in energy matters - and the perspective I bring from the private sector and from State and Federal regulatory functions - will help move these important technological advances closer to commercial acceptance.

I also look forward to the challenges of maintaining an adequate and responsive Strategic Petroleum Reserve. This is truly our Nation's most powerful defense against energy supply disruptions. As part of the oil-related actions I mentioned earlier, the Department has recently announced major initiatives to add crude oil to the Reserve without imposing additional cost burdens on our taxpayers. I am committed to carrying out these efforts and exploring others that will add valuable "oil insurance" for our energy future.

I also look forward to the challenges of continuing effective oversight and ultimate privatization of our Naval Petroleum and Oil Shale Reserves.

The properties that remain under the Energy Department's authority - after the successful sale of the Elk Hills Naval Petroleum Reserve - require our thoughtful stewardship. In the coming months and years, we must assure, for example, that the Teapot Dome Naval Petroleum Reserve #3 is managed efficiently in its final years of productive life. In addition, we must make every effort to enhance the capabilities of the Rocky Mountain Oilfield Testing Center in preparation for its eventual transfer to private sector ownership.

Finally, Mr. Chairman, if confirmed, I look forward to working with a team of outstanding professionals in both the headquarters and field offices of the Fossil Energy Program. These are dedicated individuals who share a vision of fossil fuels as the energy strengths of this Nation. I am particularly pleased to have the considerable talents and capabilities of Robert Kripowicz, the Principal Deputy Assistant Secretary for Fossil Energy, to draw upon in carrying out my new assignment.

I fully recognize, from my involvement at both the State and Federal levels of government, that Federal energy policies must be respectful of and balanced with State policies. I have a firm commitment to work collaboratively with those throughout this Administration, with State and local governments, and especially with the Congress to develop and carry out a Fossil Energy program that is responsive to the economic, environmental, and energy security needs of our country.

I am committed to doing all that I can to assure that the United States remains diligent in shaping a more secure energy future, that it continues its stewardship of strategic and other energy reserves, and that it remains the world's leader in supplying effective and affordable energy and environmental technologies to markets both domestically and internationally.

As I said at the beginning of my statement, we have enormous opportunities to make fossil fuels part of tomorrow's energy and environmental solutions. I pledge to this Committee that, if confirmed, I will do my best to help this Nation realize those opportunities.

Thank you for your time and consideration of my nomination, and I look forward to addressing any questions you may have.