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Urgency Behind Bush Energy Plan Wanes

ByABC News
July 16, 2001, 5:58 PM

W A S H I N G T O N, July 16 -- As the White House powers up its controversial plan to tackle what President Bush has called an "energy crisis," a steady drop in prices is raising the question of whether the proposal is a solution to a problem that no longer exists.

When Bush introduced his plan in May, warning that America faced the most serious energy shortage since the oil embargoes of the 1970s, gas prices had peaked at a nationwide average of $1.76 per gallon. At one point, Energy Secretary Spencer Abraham cautioned that gas prices could hit $3 a gallon this summer.

But the average price at the pump has since fallen to $1.51 per gallon and is expected to drop to $1.42 per gallon by the end of the year. Natural gas prices are down by half in the past six months. And in electricity-starved California, Gov. Gray Davis opened the state's fourth new power plant in just the past three weeks.

Double-Edged Sword

But while the easing of what appeared to be an energy emergency is great news for consumers, it poses a major challenge for the White House as it tries to sell its energy plan.

Asked whether President Bush had overstated the case about the nation's energy woes, White House spokesman Ari Fleischer responded that anyone paying $2.50 a gallon at the pump would say otherwise.

Despite the improving energy picture, Fleischer argued, the nation is "operating on the margins of error" and is vulnerable to future price spikes.

But even the president acknowledged the price drop makes it much harder to sell his plan to the American people and perhaps more importantly to Congress.

"Anytime there's not, you know, an immediateproblem that's apparent to people, it's tough to convince people to think long term," Bush said.

So the president has sent his team on a national road show to drum up public support. Vice President Dick Cheney was the featured speaker today in Philadelphia, but because of laryngitis his wife took center stage.

"Another broad aim is to increase energy supplies from diverse sources. This kind of balanced approach is essential," Lynne Cheney said.