Energy dilemma of '76: Congress is the culprit
The author puts the U.S. energy dilemma in perspective by exploring basic causes of the problem and what has or has not been done about them. Also included are some basic questions about energy that the general public might ask, and Dr. Merklein's answers contain much data on which opinions may be formulated. Some comments are included about the status of the U.S. economy in general. The last full calendar year prior to the Arab oil embargo, 1972, the U.S. consumed petroleum and petroleum products at the rate of 16.2 million bbl/day and imported 27 percent of its needs. In 1975, the first full year following the embargo, the U.S. consumed the same amount of petroleum, but imported 38 percent of its needs. In the first half of 1976, imports soared to 45 percent of total demand in spite of Project Independence, appeals for energy conservation, mandatory speed limits, and international agreements of various kinds between major oil-importing countries. The author questions the ability of the government to deal with the economy as a whole and examines some fallacies in the economics of the nation. The producer and the consumer are equally important in a free market, he says, even though the consumer is considered to play the predominant role. No one, in a free market, can force the consumer to purchase any good at the going price that the consumer does not want. Dr. Merklein concludes that the fundamental problem in the U.S. energy sector is underpriced energy, especially gas and oil, and cites other examples in the U.S. of its eroding economy: its policy of printing money; its inability to cure the stagflation problem for six years; an unemployment rate of 6 percent; deficit spending; and cities in financial straits. The blame for the perverse response of the U.S. government to the energy crisis clearly rests with the Congress, he says. (MCW)
- Research Organization:
- Univ. of Dallas, Irving, TX
- OSTI ID:
- 7351647
- Journal Information:
- World Oil; (United States), Vol. 182:6; Other Information: Adapted from a presentation recently made to the American Business Press
- Country of Publication:
- United States
- Language:
- English
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