The history of the U. S. is one of unprecedented and un

paralleled growth. No nation yet approaches the industrial strength of the U. s. No society in the history of the world has reached its level of prosperity.

Energy, readily available at reasonable cost, has been a major factor in this progress. A worldwide comparison of per capita energy consumption and real income points out the close correlation between the two. The higher a nation's per capita use of energy, the higher its per capita real income. Conversely, nations with low rates of energy consumption have low positions on the per capita income scale. The reduction of poverty coupled with progress toward satisfying rising economic expectations throughout the world will require vast increases in the supply and utilization of energy.

Because of the long history of abundant energy at low cost in the U. S., the nation had come to believe that a limitless supply of cheap energy would always be available. One of the most alarming aspects of the current energy situation is that many Americans do not yet realize there is a problem. Even some of those who are aware that a problem exists do not understand its severity or its dangers. They are unaware of the possible impact of inadequate energy supplies upon their day-to-day activities and life styles.

The explosive growth in demand

The public demand for energy in the United States is expected to grow rapidly through the end of the century. Based on a 3.6 percent annual growth rate, a recent study by the U. S. Department of the Interior projects almost a tripling of energy consumption by the year 2000.

Although the share of total energy consumption supplied

by each fuel may change, the actual amounts of each energy source which will be required to meet these demands will be far in excess

of current levels.

The need for energy growth

One way to conserve energy supplies would be to restrict the growth rate of energy use. This would reduce economic progress. We would fail to achieve our most pressing national goals, including full employment, alleviation of poverty, and protection of our national security. We would have to curtail efforts to clean up our environment, since additional energy will be required to secure needed environmental improvements to treat sewage, to recycle waste, Little support can be given to the assumption that the nation will choose "no growth" in the energy sector of our economy during the rest of this century. Although every effort must be made to assure that our natural resources are

and to remove sulfur from fuels.

used wisely, and for the benefit of all segments of our society,

we must assume a growing energy requirement.

The wise use of energy

An effective means of helping to meet the growing energy demands of the American people is to maximize the efficient utilization of energy in our society and minimize the waste of human and fuel resources. Insofar as practicable, we must strive toward maximum efficiency in the production, distribution and

utilization of all forms of energy.

No shortage of resources

The U. S. has sufficient resources to meet its foreseeable energy needs. While the U. S. has become a "have not" nation in terms of usable commercial supplies of fuel, we are still a "have" nation in terms of available resources. Declining reserves of crude oil and natural gas reflect a low level of exploration and development relative to demand, not an exhaustion of these resources. Estimates by government and other informed specialists indicate

that potential domestic resources of oil and gas could support substantially higher rates of production.

Coal reserves are

abundant, and represent a supply of at least several centuries at existing levels of consumption.

Potential uranium supplies for

nuclear power are more than adequate, assuming the timely developSynthetic oil and gas can be produced

ment of breeder reactors.

from coal.

Looking to the longer-run future, liquid fuels can be

produced from oil shales and tar sands. There are huge reserves

of these minerals in the Western States and Canada.

The forerunners of shortage

A host of vexing problems, some of long standing and others of recent origin, have led to the current tenuous energy supply situation. High on the list are the delays and costs created

by a lack of coordinated government policies. The many Federal departments and agencies which rule on energy matters have suffered from the lack of a coherent policy to follow. Their decisions have been piecemeal and inconsistent, based upon narrow and shortrun interpretations of conditions affecting particular fuels at a particular time. The results have been chaotic, and have discouraged the development of badly-needed energy resources.

The rapid introduction of stringent environmental standards has further constricted the nation's fuel supply. All existing energy sources have been affected. Oil from the huge Prudhoe Bay field in Alaska is still unavailable due to the long delay in approval of the trans-Alaska pipeline. This, in turn, is delaying the availability of new gas supplies from that area. Federal

offshore leasing delays are affecting supplies of both oil and

gas.

In some states, bills have either been passed or are pending which seek to bar the search for petroleum off of their coasts,

and make it difficult to find suitable sites for terminal facilities

and refineries.

Sulfur restrictions in major cities have curtailed usage of both domestic coal and fuel oil. In some states and in Congress, there are proposals to bar surface mining. Delays resulting from prolonged Federal regulatory procedures and courtordered environmental evaluations of about 100 nuclear power facilities have slowed development of this important new energy

source.

Government efforts to superimpose its direction as a substitute for market forces have exacerbated energy problems. As an example, regulation of natural gas prices at the wellhead by the Federal Power Commission, resulting in artificially low levels, acted to stimulate demand and discourage the search for new supplies. This imbalance led to a shortage of this clean-burning fuel, which could assist in reducing air pollution problems in major urban areas. Such government actions often overlook economic and technological interactions and lead to unexpected and undesirable effects.

Imports are playing and will continue to play a role in meeting the nation's fuel needs. It is inevitable that the U. s.

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