OCR Text |
Show Gentlemen, Certainly energy occupies center stage in Washington today. This is a new and unaccustomed role. Throughout its history the United States has been blessed with an abundance of cheap energy. A hundred years ago it was wood, feed and fodder, and animals. Then came the era when coal was king. Petroleum and natural gas toppled coal from the throne. New entries such as nuclear power and geo-thermal combined with the traditional sources to provide us with the energy to build the most productive society with the highest standard of living on earth. Now we are faced with an energy crisis that demands intelligent action. Failure to take timely and intelligent action - and it is already late in the day - will severely imperil our economic structure and put beyond our reach, temporarily at least, the social goals to which we aspire. The dimensions of the energy crisis have been well delineated in a number of studies. Whether the forecasts are absolutely accurate is not so important here. The demand curve may be tilted up or down in minor degree depending upon energy availability, its cost, steps taken to conserve its use or to ration demand. The supply side will be affected by the policies and the programs adopted to stimulate discovery, development, and production. But the forecasts are sufficiently accurate for policy guidance, and any unbiased observer is forced to these conclusions. First, the United States will become increasingly dependent for some years to come upon imported petroleum for its energy needs. Second, given our balance of payments position, the United States can ill afford to pay the bill for these increasing imports. Third, the source of these future imports is heavily concentrated in a few Middle Eastern countries, and this concentration introduces a special element of risk |