U.S. OIL DEPENDENCY SEEN RISING TO RECORD LEVEL
The United States' dependency on
foreign oil sources may reach record levels by the mid-1990s,
according to John H. Lichtblau, president of Petroleum Industry
Research Associates.
    Lichtblau, speaking at an alternative energy conference
here, said the U.S. may depend on foreign suppliers for as much
as 52 pct of its oil by 1995, surpasssing the previous high
level of 47 pct in 1977.
    "The long term growth in dependency on foreign oil is
inevitable," Lichtblau said. As much as 30 pct of U.S. oil
imports in 1995 could come from OPEC nations, he said.
    Lichtblau said the U.S. depended on foreign suppliers for
33 pct of its oil in 1986 and predicted that would increase to
40 pct by 1990.
    "However, the rate of this growth can be affected
positively or negatively through government action or
inaction," Lichtblau said.
    He said that one of the government's negative actions is
the maintenance of the windfall profits tax which acts as a
disincentive to developing existing fields and reduces cash
flow for oil exploration.
    Lichtblau called for the adoption of an international floor
price for crude oil to help stabilize world oil prices.
    "An international floor price adopted by all or most
industrial countries would clearly be a much more effective
measure and would be much less distortive for the U.S. than if
we imposed it alone," Lichtblau said.
    Development of alternate energy sources such as synthetic
fuels as well as increased development in Alaska could lessen
U.S. dependency on foreign oil, Lichtblau said.
    A potential for alternative supplies could limit the
willingness of OPEC nations to raise oil prices, he said.
    Lichtblau also called for the federal government to offer
tax abatements for oil drilling, to fill the Strategic
Petroleum Reserve at a faster rate and to develop pilot plans
for alternative energy.
 Reuter
