No Short-Term Solution For

High Gas Prices, Snow Says

By John Christoffersen

Associated Press

TRUMBULL — Treasury Secretary John Snow said Monday there is little the government can do to offer immediate relief from record-high oil prices, but predicted the market will adapt and endorsed nuclear power as an alternative.

“Unfortunately, there’s very little that can be done in the short run to dramatically affect the price of oil,” said Snow, speaking at the NASDAQ Technology Center in Trumbull.

Snow said the high oil prices are already affecting demand and consumers have begun buying smaller vehicles. He predicted that higher prices will prompt consumers to cut back on travel and will encourage producers of alternative energy.

“We’re going to see, I think, at $60 a barrel, a lot of adaptations in the marketplace,” Snow said. “I also think that at these prices, we’re going to see supply-side adjustments.” Crude oil prices closed Monday at $60.54 a barrel, up 70 cents from Friday’s close. It marked the first time oil closed at higher than $60 a gallon.

He promoted President Bush’s proposals for a national energy bill. The US Senate is considering a bill that would promote conservation and environmentally friendly fuels, but avoids Bush’s call for oil drilling in the Arctic National Wildlife Refuge in Alaska or a provision to give the makers of the gasoline additive MTBE liability protection from environmental lawsuits. The House passed a bill in April that is more favorable to oil and gas producers.

“I think we’re going to have to make a much bigger commitment to nuclear,” he said.

Snow also made a pitch for President Bush’s proposal to overhaul Social Security to include voluntary personal savings accounts. Democrats are virtually united in their opposition.

“We need to have more ideas from the other side,” Snow said, referring to Democrats in Congress. “I’m frankly disappointed we’re hearing so little from the other side.”

Snow offered an upbeat assessment of the US economy, citing strong corporate profits, low inflation, and faster growth than many European economies. He said he does not see a national housing bubble, but said some local markets may slow.