‘Oil: Deeper and Deeper’
Your editorial (Jan. 26), “Oil: Deeper and Deeper,†presents an accurate, sobering assessment of how lower oil prices and the resulting downturn in the domestic oil industry pose a threat to the nation’s future energy supply, economic health, and national security. But your suggested responses to this serious problem focus for the most part on only half of the solution--increased conservation.
As The Times points out, falling oil prices have caused demand for petroleum products to increase by 2% to 3% a year. At the same time, domestic production is plunging--by as much as 1 1/2 million barrels a day over a two-year period. The growing gap between increased demand and declining production is being filled by imports, now supplying 40% of our oil needs. Alarmingly, this figure could rise as high as 60% by 1995.
Efforts must be undertaken to encourage production of America’s vast oil and natural gas reserves. It is important to point out that an import fee is not the only option for stimulating domestic production. Other actions could help achieve this goal:
1--Repeal the “windfall profits†tax to stabilize industry’s economic environment at no cost to government and signal support for exploration now for new reserves.
2--A sensible national energy policy must permit access to public lands where geologists believe America’s most promising new oil discoveries will be found. The time has come to cease ignoring the significant oil and gas potential in unexplored areas, such as offshore California.
3--Remaining price controls on natural gas should be eliminated, again at no cost to government and stabilizing energy markets for the future.
It is commonly agreed that petroleum will furnish the bulk of U.S. energy well into the 21st Century. In order for the nation to meet these future oil needs, it will have to produce more and use less. The solution does not lie in an “either/or†situation, as your editorial suggests.
DOUGLAS HENDERSON
Executive Director
Western Oil and Gas Assn.
Los Angeles
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