U.S. WARNS OF DEPENDENCE ON FOREIGN OIL
A White House-ordered report said 
that growing U.S. reliance on foreign oil into the year 2000
could have potentially damaging implications for national
security.
    The Energy Department study discusses several options to
curb reliance on foreign oil, but makes no recommendations.
    President Reagan and most Congressmen have previously ruled
out a tax on foreign oil as a way to curb imports and to help
the depressed domestic oil industry.
    Energy Secretary John Herrington said in a statement that
"although we have made gains in energy security in the last six
years, this report shows that there is justification for
national concern both over declining competitiveness of our
domestic oil and gas industry and over rising oil imports."
    The report said imports last year were 33 pct of U.S.
consumption and by the mid-1990s could rise to 50 pct.
    Among the report's options to ease U.S. reliance on foreign
oil are several already advocated by the Reagan Administration.
    President Reagan ordered the study last September, citing a
determination that the country never again become captive to a
foreign oil cartel, referring to the OPEC-led oil shortages and
sharp prices increases of the 1970s.
    The report said an import fee would raise prices and help
make it economical for U.S. oil firms to find and produce new
oil, as well as to cut imports, but on the whole the tax would
depress the nation's economy.
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