Policy makers said the bill was designed to create jobs while boosting oil, natural gas, coal and nuclear production., although it would come at a higher cost to the government than the $16 billion in energy industry benefits proposed in an earlier version.

Rough calculations from Democrat representatives have put the cost of the bill's tax breaks and other provisions at about $115 billion over a decade.

Apparently not happy with being given a free run under President Bush the Teamsters Union still found time to criticize the draft bill for failing to open the Arctic National Wildlife Refuge (ANWR) to drilling, which would have created high-paying union jobs.

Nevertheless, highlights of the bill will allow oil and natural gas companies to benefit from a provision easing royalty payments for drilling deep wells on federal leases in the Gulf of Mexico. There will also be support for the construction of a $20 billion gas pipeline from Alaska to the US Midwest.

Following a turbulent year for world crude prices the legislation wisely orders the government to increase the size of the emergency oil stockpile by 50% to 1 billion barrels, ensuring a bigger cushion for the American economy in case of a disruption in oil imports.

The intake and stockpile are also sure to have an impact on world crude prices, which have been on a roller coaster ride every time US agency's releases stockpile figures before the driving season or prior to winter.