Uncategorized

Energy Deregulation Working

Click to see original imageThe United States has made positive progress toward energy selfsufficiency since completing deregulation of crude oil early this year. Indeed, a member of the House Energy and Commerce Committee has predicted that with the proper steps, the country could be “completely independent of foreign energy sources before 1990.” The magic formula, says Rep. James M. Collins, RTexas, involves proposed deregulation of natural gas and more utilization of coal, nuclear and solar energy. Former President Carter began in June 1979 to reduce crude oil controls, The process was to have been completed by Sept. 30, 1981 but President Reagan stepped up the tempo by taking off the last 25 percent of the controls Jan. 28. What have been the results? Collins, in a Congressional Record report, quoted Rep, James T. Broyhill, R-N.C., as presenting these findings from the U.S. Monthly Energy Facts (University of Houston) and the Department of Energy’s Monthly Review: – Exploration boomed. Completion of new wells was up 13,900 (34.1 percent) in January-July 1981 compared with that period in 1979. -Active drilling rigs: 1,929 in August 1981, up 86.8 percent from August 1979. – Number of active seismic crews: Up 304 (74,7 percent) in July 1981 versus July 1979. – Domestic gasoline consumption: Down 231,8-l0,000 barrels January-July from the same period in 1980, – U,S. oil imports: Down by $00,955,000 barrels January-July compared with the same months the previous year. The decline in gasoline use, a favorable conservation trend, is attributed mainly to prices which have averaged about a dime a gallon more since deregulation, Energy Administration figures show the average price of gasoline of all types was $1.26.9 for January, the month before controls were lifted. Prices went to $1.35.3 in February and were at that same figure in October, last month of record. While higher prices to this point have been an inconvenience to the consumer, the over-all picture has benefited through incentive for exploration and production and decreasing the burden of dependence on OPEC oil. Legislation introduced by Collins (H. R. 485) to decontrol natural gas completely by 1985 has been referred to the Energy and Commerce Committee. Collins’ bill, increased utilization of coal, breaking the stalemate on further nuclear development – these and other issues will be considered by Congress and the Administration in the months and years ahead. The public has a stake in the results. Undoubtedly everyone will have to sacrifice to some extent one way or another as the country climbs the long road to energy selfsufficiency, But this is a vital goal, and the report of progress toward it offers encouragement.