Defeat for Bush energy plan as Senate blocks oil drilling in Arctic refuge

The Senate, controlled by Republicans, dealt President Bush a huge blow last night when it rejected oil drilling in Alaska's arctic wildlife refuge. The vote probably kills the proposal for good.

The measure had been defeated previously, when the Democrats had a majority. But this rebuff, which came despite intense lobbying by the White House, was particularly stinging for the administration, which had argued it was essential on national energy security grounds, at a moment of impending war with Iraq.

Eight moderate Republicans broke ranks to back a Democratic amendment to a budget resolution expected to be approved later this week, outlawing drilling in the refuge. Although four Democrats opposed the amendment, it passed by 52 to 48.

Development of the estimated 15 billion barrels of oil beneath the Arctic National Wildlife Refuge in north-eastern Alaska has been a big part of Mr Bush's energy plan. Environmentalists, however, have argued that drilling would disturb polar bears, interfere with caribou breeding grounds and endanger migratory birds. The refuge covers 19 million acres (7.7 million hectares) in north-eastern Alaska. The Bush plan would open 1.5 million acres on the coast to drilling.

Democrats argued that at the earliest, oil would not flow from the reserve for 10 years, and that conservation was the best way to ease the United State's dependence on imported energy.

Barbara Boxer, the California Democrat who moved the amendment, said America could save more oil than could be extracted from the refuge "just by getting [gas guzzling] SUVs [Sports Utility Vehicles] to have the same fuel economy as ordinary cars".

Mrs Boxer told reporters: "I think this is a huge setback [for the government]. This would have been their crown jewel."

Conrad Burns, Republican Senator of Montana, criticised green groups for spreading what he called "misinformation" about the impact of drilling on wildlife and land. "What's wrong with finding out how much oil we have?" Mr Burns said. "It's a land that we can take care of and still use the resources it provides."

Mr Burns and other Republicans said that drilling in the refuge would create badly needed jobs, and new technology would limit damage to the land or wildlife. The defeat for Mr Bush's proposals suggests that his ambitious $670bn (£430bn) tax-cut proposal will have to be sharply scaled back to have any chance of passage.

In the hours before the vote, the White House stepped up pressure on Republicans who might be wavering. With war looming, proponents of pumping the oil had focused on energy security, arguing the oil from the reserve oil would help America reduce its reliance on precarious foreign supplies.