2. that the increase in the consumption of energy is beginning to outstrip our ability to meet that demand from either present or probable new sources within the Western Hemisphere. With each passing year we will become more and more dependent upon importing energy to meet our needs. Briefly the situation on individual fuels is about as follows: 1. Hydropower is largely developed and holds no hope for any major increase. 2. We have abundant reserves of coal but coal is confronted with a number of major problems. The major market is in the East but the coal reserves in the East and Midwest have a high sulphur content and their use is inhibited by air quality regulations. The low-sulphur coal is in the West, far removed from major markets and effective rail transportation. Stricter mine safety regulations have caused the closing of many small mines and legislative threats against surface mining are of grave concern to us and should be to all of you. The fact remains that coal is one of the few minerals in which the U. S. has abundant reserves and which can contribute in closing the energy gap, once existing obstacles are removed. 3. No way is in sight for finding enough natural gas to meet the potential demand for that fuel if natural gas were available. Production from existing reserves will decline rapidly and production from expected domestic sources not yet discovered is not expected to be sufficient to even maintain the present level of supplies. Some measure of relief will be forthcoming from imports from Canada, from imports of naphtha