by Dewey F. Bartlett, 1973
Congressional Record, 93 Cong., I Session, June 28, 1973

Introduction

Beginning about the Memorial Day weekend in 1973, and continuing on through the summer, Americans were gradually made aware of an impending energy crisis when gas stations in some parts of the country ran short of gas and oil. Many independent dealers, unable to obtain supplies from the refineries, were forced out of business. The reasons for these shortages were difficult to unravel, but one of the possible causes--federal regulation of the oil industry--was dealt with in a speech by Senator Dewey Bartlett of Oklahoma on June 28, 1973. Bartlett had replaced Fred R. Harris in the Senate in January 1973.

There is lots of talk heard about the energy crisis. There are those who question that it really exists. But I say you only need to go to the nearest filling station or go to the nearest farmer to learn that it exists. But little has been done to help solve the problems of the energy crisis.

This body and the Congress has not yet come up with solutions and in the past several years has unknowingly, I believe, added to some of those problems. We are going to address ourselves to various aspects of the energy problem, and I will discuss one approach that has been mentioned as a solution--more Federal controls.

What has been happening to the U.S. dollar abroad is alarming, even frightening when you consider the consequences.

The first quarter of this year our Nation had a balance-of-payments deficit over $10 billion. There are U.S. dollars aplenty abroad, so many in fact, that many are being cashed in hurriedly. Our domestic inflationary spiral and strangling fuel shortage add to the uneasiness of foreigners that hold U.S. dollars.

The sad, but true, fact is that in the near future we will have to spend more and more dollars abroad for crude oil and other petroleum products.

The more we spend, the less our dollars will be worth; it is a vicious cycle. We could, in a very few years, become a bankrupt nation.

Unfortunately, many cast the blame for our energy problems on the energy industry only. It is not without blame, but we should recognize that there are many reasons for our problems and certainly not the most insignificant of these has been Federal controls imposed with honorable intention, but sometimes with disastrous results.

Federal regulation of interstate natural gas prices is a classic example. It has depressed the domestic energy industry in many ways. The fuels which have had to compete with the artificially low gas prices have also been depressed to artificially low levels--all this leads to a lack of sufficient profit incentives for development of our indigenous resources.

Another offshoot of depressed prices is the premature plugging of oil and gas wells because of the unfavorable economics of maintaining production.

Controlling the price of natural gas has effectively controlled the market price of all competing fuels--providing cheap energy for the short pull, but providing shortages and inevitably higher prices for the long run. There is no telling how much this particular Federal control is costing the United States today in additional oil import requirements.

The cost to keep our environment clean is great, too--perhaps greater than we can afford....The auto emission standards that have been imposed by the Environmental Protection Agency also have a high cost. The decrease in fuel economy could cost over half a million barrels per day in imports or $900 million annually by 1975. The EPA itself recommends that the standards be reviewed.

Much needed domestic Alaskan oil has also been held up for environmental considerations and right-of-way difficulties. The 2 million barrels that we could be getting would replace imported oil--saving the country another $3 billion annually in balance-of-payments deficit.

....The situation is in a turmoil. Just take the National Environmental Policy Act, for example, I think I can safely say that no one at the time of its enactment realized how costly it would be in terms of dollars, energy, and delays in progress for our country....Those who propose more Federal controls should beware. Controls have been choking the domestic energy industries for years. Energy is the basis of our Nation's strength. Now it is the "vulnerable jugular" of America's economy. New laws must be carefully drawn to assure progress, not prevent it.

The letting of blood was given up as a prescription for ills long ago. Let us quit stabbing our energy industry in the back with needless controls. We cannot afford for it to die. For those who propose, in essence if not in fact, Government ownership of the energy industry, I have a suggestion. Take a good look at the success we have had with the Federal Post Office.

I have faith in the system which has made this country great--freedom and free enterprise. They will, if given the chance, make it greater.