The Optimist (Abilene, Tex.), Vol. 61, No. 11, Ed. 1, Friday, November 16, 1973 Page: 2 of 8
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Oil lobby
by RICK HAGAR
Who's behind the current
energy crisis?
Why it's the petroleum
producers of course Or to says
the California Professional Soci-
ety who say the producers
have created an artificial energy
crisis in order to get Congress
to approvo the Alaskan pipeline
and all offshore drilling and
bigger depletion allowances.
What does the CPS suggest to
combat the conspiracy? Why
approve the Alaskan pipeline
and all offshore drilling and
bigger oil depletion allowances
of course!
The CPS an organization of
professional oil lobbyists re-
cently compiled a number of
report and newspaper articles
concerning the energy crisis
into a magazine-style news
sheet. The Optimist received a
copy of this news sheet and
found that for alt the inconsis-
tent charges and solutions it
gives a fairly good picture as to
what has is and will happen
regarding the energy crisis.
The California Professional
Society claims the current
energy crisis is the result "of a
criminal conspiracy (by petro-
leum producers) to destroy the
independent gasoline retailers
increase the price on gas oil no
panic Congress into approving
the Alaskan pipeline all off-
shore drilling and giveaway oil
depletion allowances." The re
Energy crisis: the how
FoKowiflg ate two opinions at
te how the energy crisis
originated. The proponent of a
conspiracy theory is Rep. John
Meea of California. James
AJMstOfOOAe pCeOnBTWilfc X vftv
California Professional soeiety
Moss
Recently Mobil Oil Com-
pany ran full-page tax-deduct-able
advertisements in the
home-town newspapers of every
member of congress to influence
decisions on oil at d gas issues
particularly on tho gasoline
shortage and related aspects of
the energy crisis.
Presumably Mobil's ad
speaks for all eight major oil
companies recently charged by
the Federal Trade Commission
with suppressing competition
monopolizing refining capacity
and fixing prices across the
nation since 1950. Mobil was
one of the companies named
Its central theme was these
major companies are totally
Innocent of any wrong doing
and that environmentalists and
the Congress are preventing
them from serving the public.
Published weekly except vaca-
tions final exami and summer
sessions by (lie students of Abi-
lene Christian College. Mail all
change of address notices - and
new subscriptions - to ACC Box
8203 Abilene Tx. 79601. By
matt; $3 per year or $2 per
semester. Second class postage
paU at AbHeM Texas
claims present crisis
port says the utility companies
are no less guilty than the
petroleum producers; "they
(the utility companies) stand to
gain a ten-fold Increaso in their
rating structure from new
natural gat sources"
To Justify the CPS claim of
an oil company conspiracy the
report argues that only 25
percent of the oil In existing
petroleum oil fields has been
removed. Peter Bernstein of the
Newhouse News Service reports
that the country's biggest
undeveloped resources the pub-
licly owned oil shale deposits in
the Rocky Mountains hold an
oil deposit estimated at 1.8
trillion barrels of oil. "That is
enough petroleum to supply the
projected domestic needs for
300 years" says CrS.
A UPI story last June says
the latest report of the Ameri-
can Petroleum Institute intri-
cate a proven reserve of 36.7
billion barrels of oil with only
a depletion (usage) of 1.7
billion barrels last year; Tx
20-year reserve. Similar statis-
tics wera given for tho proven
reserves of natural gas and coal.
"With all of these resources
and tile Alaskan and offshore
oil fields of tho future the very
idea of a fuel shortage is
ridiculous" claims the news
sheet.
According to the CPS news-
letter what is causing the fuel
shortage Is delays in the
In effect they are Innocent
victims of natty accusations.
These eight companies represent
a staggering array of economic
power. Their assets aggregate at
least $76.8 billion. Their 1972
sales totalled $81.5 billion.
They account for 8 of all
refining capacity 64 of the
proven reserves here at home
and 65 of all gasoline sold.
In the ad a heart-rending plea
is made for de-regulation of the
price of natural gas at the
wellhead In order to encourage
more exploration domestically.
But consumers are not told that
for every penny increase per
thousand cubic feet of natural
gas American consumers will
pay some $200 million And
the oil and gas people are
actively seeking a hike of 73
In this commodity from tho
federal government. No men-
tion is made of the quantum
jump the average utility will
take if such increases ire
granted.
For years big oil vehemently
resisted the one action that
would prevent shortages: The
end of an oil import quota
system which limited Imports
since 1059. Instituted by Presi-
dent Dwlght Eisenhower at oil
industry requests quotas kept
our supply tight allowing big
oil to charge the public what it
wanted.
The so-called gasoline short
age artificially Induced by big
oil allowed the majors to
eliminate at least 1200 small
gasoline dealers in recent
months; men who often oper
Alaskan pipeline (which would
represent 16 percent of the
present consumptive demand;
rrioro than enough to compen-
sate for the Arabian oil
boycott) a major shortage In
refineries and development of
known oil producing areas.
Other forms of energy such
an natural gat and coal are
facing simitar artificial short-
ages and are actually still
tremendous potential energy
sources says the newsletter
The report claims that many
ecological buffs and private
citizen groups have contributed
their share in creating a
shortage of fuel by stopping
development of oil In class
action suits.
The use of American coal hat
been reduced because of its
high-polluting sulfur content
Technological advances In elim-
inating tho sulfur pollutants
have been slow and tedious
Tho report claims "much of
the developing energy shortage
Is duo to public apathy and
unawarencss or the problem
that has resulted from over-publicizing
the great expectation of
the future."
"Either the mass of the
people start to contact all of
their elected representatives to
release the energy resources
that are now required or this
nation and its people will
perish" says the news sheet.
and why of
ated across the street from
major dealers offering consum-
er cheaper prices for gasoline.
Mueh of the Warne does rest
en the President and Confrees
as they have Ignored these few
voices eaUIng for change. There
are actions we can lake We can
dramatically increase research
support to develop alternate
power sourceo. We car) refuse to
guarantee huge Increases in
profit to big oil which I
consider unmoral on their part.
And we can break up the
monopoly from wellhead to gas
pump big oil now has over their
products.
Vertical Integration or mon-
opoly down the line Is
enrichment of a few at the
expense of all the American
people. Such power breeds
arrogance and a tendency to
overreach and think that you
can get away with anything.
Anderson
Recently the petroleum In-
dustry has come under attack
by the mast media agencies of
both the federal and state
governments and various politi-
cal representatives.
The charges which have been
made show a lack of under-
standing of general economio
principles current events and
the competitive market place
The petroleum companies
which more than anything eke
are the bask of our American
standard of Hfe ara being made
a scapegoat for aoaaethmg over
which they had no control for
the benefit of the "news"
a 'conspiracy'
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its origination
popular Interest groups and the
teney within governmental
The fact of the matter k that
gasoline which we buy for leas
per gallon than the price of
bottled water k the remit of
one of the most competitive
sectors of the entire economy.
The major oil companies
have been competitive by trying
to attract customers through
customer services and competi-
tive pricing. You do not remain
a major without sales.
Yes thero are restrictions of
trade now. There is no longer
any "dumping" of bulk gasoline
that is being produced through
the major companies' retail
stations. The gasoline of the
wholesale market has dried up
thk hat not only affected the
chain operator of cut-rate
stations but the large municipal
and corporate accounts Why?
Conspiracy?
The out-put capacity of
No Optimist next wk!
That's right gang. feta of the Thenfcsglvlnf
holidays the Optimkt ttoff wW take a short breather ami
thus wW net publish an ktu next FrMay.
Watch for ewr next hew Nov. 3$. If you're gohsg home
skive eetafuHy and conserve fuel.
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a carry over of the high
consumptive rate for heating
fuek last winter greater agriewl-
lUisM WClWsHtttl IsVOnrl I'tTVtrMWrvA
productive acreage more opera-
tional motor vehicles using
higher consumptive rates slue to
smog control devices and great-
er public participation in the
use of low mileage recreational
vehicles.
It U true tliat gasoline prices
have increased but we can
expect them to increase more
in tho future. The domestic oil
which came from wells that
were drilled in two weeks by
portable drilling rigs twenty
years ago are now being
replaced by massive offshore
towers on the continental
shelves which have to remain in
place until the walk they
operate are dry
The only conspiracy that
exists k In the minds of men
who claim a conspiracy exkts.
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The Optimist (Abilene, Tex.), Vol. 61, No. 11, Ed. 1, Friday, November 16, 1973, newspaper, November 16, 1973; Abilene, Texas. (https://texashistory.unt.edu/ark:/67531/metapth91820/m1/2/: accessed April 28, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Abilene Christian University Library.