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Show m Page The National Enterprise, April 27, 1977 twenty-tw- o I The Prince Column Open Account 1 Carters Energy Plan Its a Step by Chuck Akerlow While there is great room for dissension and complaint about the details of the Carter Energy Program, I believe it is a step in the right direction. The President is wise to put the priority on conservation rather than on the development of new resources. This strategy should provide the nation with earlier results and will probably cost less in the long run. Maybe we will all realize that energy is neither abundant nor inexpensive and the future of the country depends upon how well we utilize those resources we have. fuels. After that it is hoped that new sources of energy will be found or that new energy technology will enable us to better use those resources we have. One of the problems in the development of new energy sources as well as new energy technology is the government itself. Industry needs some break in order to afford the cost of the development of new sources and technology. Chase Manhattan Banks chief energy economist John G. Winger told a Washington symposium on energy crisis that during the decade which began in 1975 the oil industry in the world would require $1.4 trillion for new plants and equipment. However, profits have fallen to 4.7 of revenue which is far too low to generate needed capital for expansion. Winger says that if inflation continues at current rates the oil companies by 1985 will be forced to charge $43.25 per bbl. in order to generate sums needed for expansion. Such a huge jump would drive up the prices of other consumer goods and thus be very inflanon-commun- A positive example of energy conservation is found in the results of Eastern Air Lines President Frank Bormans efforts at conserving fuel. Eastern has increased its passengers 10.4 while decreasing fuel consumption by 7.5. He did it through cutting the number of flights, adding seats and flying at lower speeds. The Carter plan looks at conservation being the central policy during the next ten Coal and convenyears. tionally produced nuclear energy will be the bridging BY John Prince -- ist tionary. Chevron president Donald Bower urged government to the roadblocks to He energy development. cited the following roadblocks to energy development and expansion. remove a. The government price control policy which discourages the formation of capital to expand supplies and which also encourages wasteful consumption; b. Endless delays in the leasmost ing of federal oil land notably on the continental shelf; c. Governments own day-to-d- ay uncertainty about its regulations which make it impossible to plan for longterm capital investments; d. Congressional break up the oil which serve only the oil companies primary business. threats to companies to distract from their Government always has been part of the problem. If the President means what he says then maybe the day has dawned when government can become part of the solution and government and private enterprise can work together to meet the challenge of energy shortage rather than wasting time in opposition on political matters. It isnt often that I know exactly what to do. But this time I know and you probably do too. At lease we know generally what has to happen. I say that you know too. That isnt just idle praise. Im confident that you wouldnt have this publication in your hands were you not an above average reader. So what I have to say doesnt need to be said to you. And even if you had somehow not received the message it is not likely that anything I could say would make much difference. A lot bigger guns that I have been saying it for years and still there are millions and millions of Americans who don't believe it. Its hard for me to believe too. But what is hard for me to believe is that we have any oil left on the earth. Do you remember the last time you were in Los Angeles? Did you look at the thousands of cars on the freeways zooming in all directions? Every hour of every day cars going in all directions Factories and homes heated and run on on this earth. petroleum. Airplanes and trucks and motor boats. How in the hell do we have even a single drop left anywhere? Its not hard to believe that we are running out. Its incredible to realize that we havent already. The truth quite clearly is that this nation has to find a way to use less petroleum. American alone could account for about 45 percent of the total industrial growth in energy demand among all 1985. now and between powers non-Commun- ist We already bum more than 30 percent of the worlds oil. If we keep it up not even Saudi Arabia has enough. When prices of a commodity go up, people tend to cut back on their consumption. Hence, the price of gasoline, for example, must go up way up. You and I and all our friends have to think twice before we take a Sunday drive. Or, we have to take it in a car that gets a whole lot better mileage. that Washington cant put a tax on because gasoline people cant afford it. Well, thats the whole idea. The price of gasoline has to get so high that we all finally give up on our big cars. I keep hearing people say Now you know that and I know that. Why dont all the congressmen know that? How did we end up with so many politicians at a time when we so desperatly need statesmen? Another thing we need is some alternatives. Thats the one thing that seems to me to be the most lacking in the President's speeches. Can you imagine a president telling us that we are at war so we had better conserve our old weapons? Why not invest and build new ones? The American people cant have it both ways. They cant resent profits and still expect people to take economic risks to solve their problems. In short, we can't take away the chances for unreasonable profit and still expect investors to take unreasonable risks. So, if we want solar heating, electric cars, coal, nuclear energy, oil from oil shale etc., we had better let the word out that the government is going to keep its hands off. believe that most of our officials know in their heart that what Im saying is true. They are simply afraid of the American people come the next election. I really But do they ever worry about what their grandchildren will say? What did you do in the war? For most of them the truth will be that they went along with the uninformed crowd. They werent leaders, they were followers. They sold this countrys future down the river for their own personal Hello sak&e. - resident the MOT cm peach STREET DIP RESPOND VtRV WELL TO CUR Follow-U- P OH THE GcMPlAiMT THAT HE WAS WATERING-- TOP MUCH, re-electi- Our energy policy can only be one thing. Prices must be so high that we all use much less. And profits must be so possible that our best minds all race to find alternatives. I know exactly what to do and so do you. this country. De-regula- te energy in No president could ever advocate such a policy since his speech to Congress would only take 4 seconds. |