Energy said to top a President McCain's policy list

By Emily Kaiser and Corbett Daly

ST. PAUL (Reuters) - John McCain would spend his first 100 days as president focused on energy policy, one area where he sees common ground with Democrats who will probably control Congress, his economic adviser said on Tuesday.

His choice of little-known Alaska Gov. Sarah Palin for his running mate came as a shock but the adviser didn't expect the Arizona Republican senator to pull any major surprises with his appointments of top Treasury Department staffers who will help direct the biggest financial regulatory overhaul in 70 years.

"He's going to arrive with a very aggressive agenda on energy," said Douglas Holtz-Eakin, McCain's top policy adviser, adding that Democrats and Republicans agree on the need to break the country's oil addiction, if not the method.

"At least there is some commonality (between the parties) and we can build on that," he said at a Republican panel discussion on McCain's policy priorities.

House of Representatives Speaker Nancy Pelosi, a California Democrat, reversed her outright opposition to offshore drilling last month.

Democratic presidential nominee Barack Obama has opposed lifting the congressional moratorium on drilling in federal lands off U.S. coasts, but now says he would support limited offshore drilling as part of broader legislation to help solve America's energy problems.

Interviewed by Reuters, Holtz-Eakin said offshore drilling was a viable shorter-term option while the country develops new energy technology.

"If we were to do more exploration in places like the Gulf, the outer continental shelf, we can get new product to market in something that looks like 3 1/2 to 5 years," he said. "That's important to get going because America needs options and alternatives to imported oil."