The United States Energy Outlook and Its Implications for National Policy

Abstract

While the United States may be able to ameliorate near term energy problems through appropriate government and industry action, there is no realistic proba bility of a complete escape from them. The next ten to fifteen years will be the critical period. During this time the balance wheel will be the volume of foreign oil imports. America must take a new look at, and accord a higher priority to, our foreign policy regarding the Middle East. The growing requirements for oil and gas imports will provide a large and increasing deficit in the United States balance of trade in fuels. Scarcity of domestic fuel and increased importation of oil and gas will significantly raise the price of such fuel. Four broad categories of response to the energy situation appear necessary: (1) we should create a single, high level agency in the federal government to develop a comprehensive national energy policy and to coordinate national energy- related efforts; (2) while keeping concern for reasonable environmental safeguards in mind, the United States should forge ahead rapidly in research and development of indige nous energy sources and, thus, reduce dependence on foreign sources; (3) strong programs should be initiated to reduce waste in the consumption of energy; (4) the United States should develop cooperative programs with the other major industrial nations in the free world.