United States Energy Through The Year 2000 (Revised) - Introduction

When the original version of this study was published in 1972 it was evident that a problem was developing on the energy scene. The ability of the United States to find the energy supplies it needed within its own boundaries--at least in the forms desired--was declining. Production of crude oil in the United States had peaked in 1970 and was declining slowly; environmental restrictions had begun to hamper the production and consumption of high sulfur coal; natural gas reserves were beginning to dwindle; and the development of nuclear power was proceeding more slowly than originally planned. Shortfalls in energy supply were being met through the importation of increasingly larger quantities of petroleum, but supplies were adequate and the price of the imports was below that of domestic production. The energy problem was more prospective than current. In October of 1973 the prospective problem became the "Energy Crisis' when the Arab petroleum exporting countries reduced crude oil production, imposed an embargo on the shipment of crude oil to the United States, and then raised the price of crude oil in a series of large steps. This crisis was a clear demonstration of the dangers of the dependence of the United States on imported petroleum, and of the Nation's vulnerability to the actions of the oil exporting countries. After the embargo was lifted, attention shifted to the immediate hardships resulting from the higher prices for gasoline, fuel, and electricity,