International Cooperative Efforts in Energy Supply

Abstract

During the 1970s and into the next decade, petroleum and natural gas derived in conventional ways will continue to constitute the major share of the fuel consumed in the United States and the world. After 1985 other forms of energy will increase in importance. Since the demand for oil and gas will increase in the near term, it is likely that prices will also rise. Thus, during the next ten to twenty years, the supply and price of oil and gas will be critical elements in the energy policy of both consuming, and exporting, nations. An ideal solution to the supply-price matter would be a rise in the supply of oil and gas which would meet the demand until alternative energy sources are available. Concurrently, the price of oil and gas should rise, but should not substantially exceed the cost of the alternative sources being developed. In order to pursue such an ideal solution, it must be understood that there is a real problem: the current energy difficulties are not created by an oil conspiracy; the price of oil and gas will not fall; and easy solutions cannot be expected. As a necessary part of the ideal solution, the major consuming areas should jointly approach the energy situation; another cooperative effort should be joint development of new energy sources. All should avoid narrow self-serving, near term actions. The cooperative approach to the world's energy problems fits well into the larger framework of cooperation on international matters pursued by the Nixon administration.