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CNN Wolf Blitzer Reports

Lawmakers, Analysts Warn Nation Headed for a Summer of Energy Price Inflation

Aired April 26, 2001 - 20:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
WOLF BLITZER, HOST: Tonight: an ailing American doctor and a daring rescue from the South Pole. I'll have an exclusive interview with Dr. Ronald Shemenski.

As the price of gasoline soars to more than $2 a gallon in some places, there's an overall energy shortage. And with some fearing $3 a gallon, lawmakers warn we're on the edge of a crisis.

(BEGIN VIDEO CLIP)

UNIDENTIFIED MALE: We twiddle our thumbs a little longer, it will be upon us.

(END VIDEO CLIP)

BLITZER: President Bush prepares to mark his first 100 days in office, as Democrats slam his record. We'll go live to Texas. And I'll discuss tax cuts, tensions with China, and the next 100 days with two outspoken members of Congress -- Republican David Dreier and Democrat Charles Rangel.

Good evening. I'm Wolf Blitzer reporting tonight from Capitol Hill.

We'll get to our exclusive live interview with Dr. Ronald Shemenski shortly. He's the ailing doctor who just got out of the South Pole.

But first: what are the prospects you'll be paying $3 per gallon of gasoline this summer? That's apparently no longer all that far- fetched in some parts of the country, as prices continue to increase, just as the driving season gets going. And that's our top story.

(BEGIN VIDEOTAPE)

BLITZER (voice-over): This sign at Tom's Shell station in Madison, Wisconsin says it all about the cost of gas.

UNIDENTIFIED FEMALE: I think they are horrible, that we are expected to pay these kinds of prices. And it does make it difficult to travel long distances, because you have to consider how much it's going to cost in gas. BLITZER: But what's fueling the rise that has reached more than $2 in some places? Some point to the large profits of major oil companies: ExxonMobil up 44 percent, Chevron up 53 percent, and Conoco up 58 percent since last year. But industry representatives testifying on Capitol Hill say it's high demand, strict government regulations and too few refineries.

THOMAS ROBINSON, CEO, ROBINSON OIL COMPANY: We have a very severely stressed refining and distribution system. And as long as you have a stressed system, you're going to have volatility.

BLITZER: One key committee chairman recommends looking to alternatives like coal and natural gas.

SEN. FRANK MURKOWSKI (R-AK), CHAIRMAN, ENERGY AND NATURAL RESOURCES COMMITTEE: It's going to be worse, there's no question about it. We just don't know how bad it will be. We might see $3 a gallon.

BLITZER: Democratic Senator Chuck Schumer and Republican Susan Collins have dire predictions of their own when it comes to oil, natural gas and electricity.

SEN. CHARLES SCHUMER (D-NY), ENERGY AND NATURAL RESOURCES COMMITTEE: Shortages in all three major energy sectors are a perfect storm of simultaneously converging market disruptions that could yield a profound crisis for the entire U.S. economy.

BLITZER: They propose improving fuel efficiency, upgrading distribution and expanding drilling on federal lands.

(END VIDEOTAPE)

BLITZER: For more on the debate over the price jump at the pump, I'm joined now by CNN congressional correspondent Kate Snow. Kate, what can Congress do about this?

KATE SNOW, CNN CONGRESSIONAL CORRESPONDENT: The truth is, Wolf, there's really not a lot they can do. They had a hearing this morning at the Senate Energy Committee, and they were told by industry executives that this is really a supply and demand issue.

They did suggest one fix that Congress could potentially do, and that is that the industry would like them to change a law that right now requires them to mix what are called oxygenates into the gas. They say, look, we can clean up gasoline to make it cleaner-burning without those oxygenates, let us do it that way, just don't tell us what ingredients we have to use.

That's something Congress could consider, but that's also politically a little bit dicey, because ethanol is one of those oxygenates, and as you know, there's a strong lobby for the ethanol.

BLITZER: Meanwhile, Democratic leadership in the House and Senate came out swinging today, hammering President Bush on his first 100 days. Listen to these exchanges. (BEGIN VIDEO CLIP)

REP. DICK GEPHARDT (D-MO), MINORITY LEADER: This is not compassionate conservatism. This is not reforming with results. This is leaving no special interest behind. And it must not stand!

(END VIDEO CLIP)

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), MINORITY LEADER: This president pledged to work across party lines, and we took him at his word. But on tax cuts and on the budget, he refuses to even discuss possible compromise.

(END VIDEO CLIP)

BLITZER: Briefly, what can the Democrats do, though?

SNOW: Well, what they're trying to do is hammer President Bush at every corner. This is not really any kind of new language. If you remember, it was March 7 -- I went back and checked, it was March 7 when they first said bipartisanship is dead, there is no bipartisanship from this White House.

So, they've been hammering this theme that they don't feel like they're getting cooperation. They clearly think that going after Bush, at least in the media, is the way to go. That's the leadership's point of view. Democrats in the rank and file, though, I'm told, there is a little bit more disagreement about how they should handle things and what strategy they should take.

BLITZER: Kate Snow with me on Capitol Hill, thank you very much.

Congressional Democrats are expending some energy criticizing President Bush's record. The president, who told CNN only yesterday he feels "pretty darn good" about his first 100 days in office, is in Texas, preparing to mark the occasion. Mr. Bush is attending a literacy event in Houston, sponsored by his mother. CNN White House correspondent Kelly Wallace is there, and she joins us now live.

Kelly, what are they saying, the White House officials, about this Democratic attack?

KELLY WALLACE, CNN WHITE HOUSE CORRESPONDENT: Well, they're saying that President Bush is not going to be expending any energy engaging in a tit-for-tat with Democratic lawmakers. We have heard this before. This president saying that he's going to try and rise above the partisan bickering. And so, aides say the president is focusing on changing the tone in Washington.

White House officials believe he's making some good progress in that regard. And so, privately and publicly, this White House is trying to focus on what it considers the positive. Saying that the president has been able to define the debate when it comes to education and tax reform. Of course, though, he definitely needs the support of Democrats to get his agenda passed. And we have seen the president starting to appear more willing to compromise to Democrats when it comes to education and his $1.6 trillion tax cut plan -- Wolf.

BLITZER: Kelly Wallace in Houston, thank you very much.

Last night, former senator Bob Kerrey joined us on this program. He was awarded the Medal of Honor for his courage under fire 32 years ago in Vietnam. But Kerrey focused on his anguish and guilt over another combat mission, which he says went terribly wrong. Kerrey faced new questions today about the incident, in which his Navy SEAL team killed a number of civilians. He says the raid took place in an area which was supposed to be free of civilians.

(BEGIN VIDEO CLIP)

BOB KERREY, FORMER U.S. SENATOR: When we fired, we fired because we were fired upon. In short, we did not go out on a mission with intent of killing innocent people. I feel guilty because of what happened, not because of what we intended to do.

(END VIDEO CLIP)

BLITZER: Kerrey says he does not plan to return the Bronze Star awarded to him after that incident.

Up next: they've been filling out report cards for the president's first 100 days. I'll discuss his grades with two influential congressmen: Democrat Charles Rangel and Republican David Dreier.

And later, a daring rescue flight brings an ill American doctor out of Antarctica. I'll have an exclusive live interview with Dr. Ronald Shemenski.

(COMMERCIAL BREAK)

BLITZER: Welcome back. President Bush marks his first 100 days in office Sunday. And he said he's pretty satisfied with his tenure so far. Democrats, however, are taking the opportunity to blast Mr. Bush on his record. Their party chairman calls the first 100 days, quote, "a disaster."

Joining me now to discuss the Bush record and agenda are two influential congressmen. Republican David Dreier is chairman of the Rules Committee and Democrat Charles Rangel. He's the ranking member of the Ways and Means Committee, joins me from New York. Congressmen, thank you so much for joining me.

I want to begin with you, Congressman Rangel. The new CNN-"USA Today"-Gallup Poll generally shows that the president according to the American public seems to be doing a pretty good job. Look at these numbers:

How Is President Bush Handling His Job As President? 62 percent say they approve, 29 percent say they disapprove.

So, the American public, Congressman Rangel, seems to be approving of the president.

REP. CHARLES RANGEL, NEW YORK: I think I can understand that one. While there's a lot of disappointment and frustration in the Congress with the president's performance, I think it was such low expectation nationwide after the Florida election debacle and after the U.S. Supreme Court appointment, I think people are just taking a deep breath and glad that the president hasn't caused more destruction than he already has.

BLITZER: The fact of the matter is, Congressman Dreier, that the president seems to have stumbled at least in one area, even some Republicans acknowledge that on the environment, the arsenic in water levels, the greenhouse gas effect, the so-called carbon dioxide emissions, from energy plants.

Some are saying that's where President Bush will turn out like gays in the military was for President Clinton.

REP. DAVID DREIER (R), CALIFORNIA: Wolf, it was nothing but perception. On the issue of arsenic, on the 11th hour, we saw this incredible standard that was put into place by President Clinton just before he left office and we will in fact see President Bush recommend a reduction in the arsenic level, just not to a level which would in fact increase bills by hundreds of dollars for consumers.

The fact is that I'm glad that Charlie has recognized that there's broad public support and the president has done a phenomenal job. Charlie mentioned the issue of that 36 days following the election. Well, if you look at the late start that George Bush had as he was going into this and couple that with, for the first time, probably since Charlie's been in the Congress, and I know for the first time since I've been in the Congress, we've had a president's budget that was not declared dead on arrival by the media.

And in fact, that budget is for all intents and purposes going to be passed.

BLITZER: On that point, Congressman Rangel, the president wanted $1.6 trillion across-the-board tax cut. In the Senate, he got 1.2, in the House he got 1.6. But, it looks like he's ready to settle to 1.4 trillion, which is very close to his wish list. A lot more than the Democrats wanted.

RANGEL: The president has had an obsession with this tax cut that's really geared and targeted to the very wealthy, 43 percent of this almost 2 trillion dollar tax cut is geared toward the top 1 percent of the American people. And the president...

DREIER: Charlie, those are the ones who pay taxes.

RANGEL: Please, give me a break, David. And the president insists this is the people's money. He's completely ignored the Social Security problem we're going to face, the Medicare problem. What happened to his promise about prescription drugs for the aged and what about the patient's bill of rights, what about education, as the money has been cut for reduction of class size?

And so, what we're saying is that the American people have not asked for this tax cut that's directed to the rich, they want to invest in people, invest in health, and I'm telling you that there's a lot of frustration that he's not dealt with....

DREIER: Charlie, on the polling itself, it shows that the American people are overwhelmingly supportive of this tax package.

(CROSSTALK)

DREIER: ...and the issue of education, the issue of Medicare, Charlie, you know that the...

BLITZER: Congressman Dreier. I just want to break in, Congressman Rangel and Congressman Dreier. There is a polling question in our CNN-"USA Today"-Gallup Poll which asked this question:

Does Big Business Have Too Much Influence Over President Bush? Look at these numbers: Yes 63 percent, No, 30 percent.

DREIER: There's a reason for that.

BLITZER : There's a perception that big business...

DREIER: It's the fact that my friend Charlie Rangel regularly goes out there and makes that claim over and over and over again. He's plain wrong.

(CROSSTALK)

DREIER: He's wrong.

RANGEL: The American people are listening to Charles Rangel and they are not listening to the president as he pollutes the air with carbon dioxide, have drilling in natural preserved areas, is increasing the arsenic that we have in our...

DREIER: Charlie, we're not increasing the arsenic! That's crazy! That's just crazy stuff, Charlie!

RANGEL: You're not reducing it.

DREIER: Yes, we are.

(CROSSTALK)

RANGEL: You're saying we're complaining?

DREIER: Why did President Clinton wait before he left office?

RANGEL: It's hard for you guys to realize it, but President Clinton is no longer president.

DREIER: Oh, no, we're happy about that.

BLITZER: Let's get back to one issue. Let's go back to one issue that Congressman Rangel raised. The issue of prescription drug benefits for seniors. It was a hot issue during the campaign; it seems to have died. Some Democrats suggesting because some drug companies have this control over the White House.

DREIER: Not at all. That continues to be a goal that's been set forward. The president said during the campaign, that he wanted to do it within the context of reform of Medicare. That's really what we're looking at. Obviously, reform of Medicare can't take place overnight.

You know that he began initially to meet with Senator John Breaux who had authored the Medicare reform proposal and he still very much wants to do that. So, prescription drugs continues to be a very high priority. But, in this first 100, you can't expect the accomplishments of the entire fours years that we have planned to be accomplished. I think we've done pretty darn well.

BLITZER: Congressman Rangel, I want to read you an excerpt from a column by Morton Kondracke in "Roll Call" in which he writes this:

"In 100 days, President Bush has, as promised, changed the tone in Washington. It's businesslike now, not boisterous. We're doing policy, not soap opera. And the public seems to like it."

RANGEL: Well, it's not boisterous, because the Republicans don't talk to Democrats. There's no coalition. There's no compromise. The tax bill was ran right down the House, there's no amendments on things they want to do.

Even the moderate Republicans have been cut out of this mission that the president has for what's going to end up being over $2 trillion tax cut. And so, you ask any Democrat when have the Republicans come over? The compassionate that the president talks about has never leaked down the to the House. Now, David Dreier is a good conductor on the Rules Committee. But of the substantive issues of law, believe me, there's no working with the Democrats.

DREIER: Charlie, are you coming to lunch on Monday with the president? I saw that you're not. The fact is, the president continues to reach out. You've been in the cabinet room meeting with the president, he wants to reach out and work with you. We want to extend an (UNINTELLIGIBLE) to Democrats and frankly, there's going to be a lot of Democrats working with us on trying to get trade promotion authority through, trying to make sure we do deal with this prescription drug Medicare and education package, and I think we'll have bipartisanship compromise, even many in the Democratic leadership want to stand in the way of it.

RANGEL: The Republican leadership wasn't going to that thing on Monday from what I hear. Dick Armey is not going to be there. A lot of Republicans are not going to be there. We don't need to movie set- type of things.

(CROSSTALK) RANGEL: The patient bill of rights, we need education bill, we need the Medicare prescription drugs.

DREIER: And we're going to do it, Charlie.

RANGEL: Sure, but when, when, when?

DREIER: In the first hundred days, I'd say we've accomplish one hell of a lot. I think that if you look at the things we've been able to put together on this budget issue, on this tax package, on education, we're on...

RANGEL: You haven't done a thing on education.

(CROSSTALK)

RANGEL: That's going to be reported out. You have rammed through the tax cut and you are going to pay dearly for it, because you've done this at the expense of the budget. You haven't provided for Social Security, you haven't provided for Medicare, you haven't provided for education and the American people are going to see all of this. Let's go to the -- let's go to the White House for lunch.

BLITZER: Unfortunately, we're not going to settle it tonight. Congressman David Dreier, Congressman Charles Rangel. Thank you for....

DREIER: We'll see you at lunch on Monday, Charlie.

BLITZER : After the break, we're planning our exclusive live interview with an ailing American doctor, rescued from a remote outpost in the South Pole.

And later, a ruling sets the future course for the Navy's controversial bombing range in Puerto Rico. Stay with us.

(COMMERCIAL BREAK)

BLITZER: Welcome back. Tonight on "The Leading Edge": an ailing American doctor rescued from the bottom of the world is now in Chile. A plane carrying Dr. Ronald Shemenski arrived from the South Pole in Punta Arenas, Chile this afternoon, the second of a three-leg trip back to the United States.

Dr. Shemenski joins me now live by telephone. Dr. Shemenski, first of all, tell us how you feel?

DR. RONALD SHEMENSKI, PHYSICIAN: I feel fine. I have recovered from the illness that I had in the beginning of the month, and I fell pretty much back to normal now.

BLITZER: And in terms of the life-threatening illness that you were facing in the South Pole at that research station -- for our viewers are not familiar with it, tell us what the problem is?

SHEMENSKI: The problem was, as far as we can ascertain at this point, is I probably passed a gallstone, and it did not completely clear what we call the common duct and got stuck for a day or two, and this caused the pancreas to become inflamed and cause quite a bit of pain. And the stone finally passed, and things have been improving since that point.

BLITZER: We understand that the rescue operation, the flight was one of the most risky, given the season this time of the year. How dangerous was it as far as you were concerned?

SHEMENSKI: Well, the people that performed the flights have been through the Antarctic quite a few times, and the pilots have made several trips identical in the summertime. They would not have come in if they felt it was under a great risk. They waited to the perfect weather conditions that we can get down there and made a fairly uneventful trip in to get me. Everything went very smoothly.

BLITZER: I know this was a Canadian operation, the flight and the pilots. So, what are your immediate plans right now? What happens next?

SHEMENSKI: Well, I'll go back to Denver and I'll continue to get some tests to see what exactly is going on, and then we'll go from there.

BLITZER: All right. I know you must be disappointed that you couldn't finish your tour of duty in the South Pole, but presumably there will be other opportunities for you down the road. Thank you so much for joining us, Dr. Shemenski, and congratulation on getting out safe and sound.

SHEMENSKI: OK, thank you.

BLITZER: Thank you.

And just ahead: weeks after he was lost at sea following a collision with the U.S. plane, friends and family say goodbye to pilot Wang Wei.

And the head of this nation's disaster agency visits flood- ravaged Davenport, Iowa.

(COMMERCIAL BREAK)

BLITZER: Welcome back. In other news tonight: the Navy plans to resume bombing exercises on the Puerto Rican island -- near the Puerto Rican island site of Vieques as early as tomorrow. A federal judge today rejected Puerto Rico's request to block the Navy from resuming its controversial drills, over claims they caused harm to island residents. The range has been the target of protests for more than a year.

In China, the pilot killed in the collision with a U.S. spy plane was given a hero's funeral today. Friends and family of Wang Wei threw flowers and wreaths into the sea. Earlier, a Chinese official reacted angrily to President Bush's pledge to help Taiwan defend itself, stating, quote: "The U.S. side's erroneous remarks after the arms sales decision has shown it has drifted further on a dangerous road. This is an open provocation against China's sovereignty and territorial integrity."

The nation's top disaster official got a close-up look today at flood damage in the upper Midwest. In hard-hit Davenport, Iowa, FEMA Director Joe Allbaugh backed off criticism from earlier this week over the city's decision not to build a permanent flood wall along the Mississippi river. Allbaugh stopped short of promising federal aid, but pledged to handle requests swiftly.

Please stay with CNN throughout the night. Navy submarine Commander Scott Waddle is Larry King's guest at the top of the hour in his first live prime-time interview.

Up next: Greta Van Susteren. She's standing by to tell us what she has -- Greta.

GRETA VAN SUSTEREN, HOST, CNN'S "THE POINT": Wolf, we're going to depth into whether or not the U.S. Navy will begin tomorrow test- bombing in the island of Vieques in Puerto Rico. Jose Feliciano, who has taken out a big ad in "The New York Times" and in "The Washington Post," plus two members of Congress and a vice admiral will be joining us to talk about it -- Wolf.

BLITZER: Sounds good, Greta. Thank you very much.

Tomorrow night, I'll talk with Michael Deaver about his new book on Ronald Reagan. Until then, thanks very much for watching. I am Wolf Blitzer on Capitol Hill. "THE POINT WITH GRETA VAN SUSTEREN" begins right now.

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