The blueprint for solving our still-heavy depen-
dence on foreign oil supplies consists of the following
six steps:

1. Exploration of the vast, as-yet-
undiscovered oil and gas resources, on-
shore and offshore, must be encouraged.
There are no practical alternatives now to oil
and gas-which, together, supply about 70
percent of our energy needs.

2. Price controls on production of all domestic
natural gas must be removed. Gas is the
only primary fuel still under complicated
govemment price regulations, which have
discouraged gas development.

3. Moratoria and other arbitrary restrictions
and delays on petroleum drilling in U.S.
waters must be eliminated. Unlike the U.S.,
other countries-most notably Canada and
Great Britain-are, or are becoming, energy
self-sufficient through development of their
offshore oil resources. Experience has
shown that we can protect our environment
at the same time.

4. Increased development of the nation's coal
resources and nuclear power must be en-
couraged. These resources have the poten-
tial to generate much more of the nation's
electricity.

5. The nation's Strategic Petroleum Reserve
must be filled as rapidly as possible. The
Reserve can serve as a buffer against un-
foreseen foreign oil cutoffs.

6. Energy efficiency and conservation efforts by all Americans must be actively continued

The year 1948 was a fateful year in more ways than
one. That year-the rebirth of Israel as a nation-
also marked a subtle, yet significant, energy shift for
the United States. For the first time, America became
a net importer of oil. We moved from reliance on
domestic oil to dependence on cheaper foreign im-
ports

Twenty years later, in 1968, we reached a miles-
tone on the causeway to catastrophe. That year, we
imported more than 1 billion barrels of oil-over 20
percent of all the oil we used.

Little was said at the time, and nothing was done, to
dispel the dash toward energy disaster.

Disaster struck five years later, in late 1973. The
oil-rich Arab nations embargoed oil shipments to the
United States and to several other countries friendly
to Israel in the wake of the Yom Kippur war.

In that year, America imported more than 2 billion
barrels of oil-36 percent of all the oil we used.

For the first time, with the embargo, Americans
suffered a serious shortage of oil. The shortage,
combined with government controls, led to long lines
at gasoline stations factory layoffs closed
schools and businesses.

At the same time, world oil prices skyrocketed.
From about $3.00 a barrel on October 1, 1973-two
weeks before the embargo-prices rose to more
than $5.00 a barrel on October 16, 1973, a 60 percent
jump. On January 1, 1974-at the height of the
embargo-prices had risen to around $12.00 a bar-
rel, a 300 percent increase in just three months.

The embargo also threatened an independent U.S.
foreign policy in the Middle East.

Disaster struck again five years after the end of the
Arab oil embargo, following the Shiite revolution in
Iran.

That year, 1979, America imported more than 3
billion barrels of oil-over 45 percent of all the oil we
used.

Shortages again appeared. And world oil prices
shot up once more until they reached $34.00 a
barrel in 1981-10 times higher than they were just
eight years earlier.

The Present Situation

Clearly, oil has become a political and military
weapon in the hands of the Arab oil producers. Fortu-
nately, for now, the weapon has been blunted.
Supplies are adequate, and world oil prices have
fallen
—to around $89.00 a barrel.

But the Arab oil weapon remains poised. It could be
used again in the future-as it has in the past-to
blackmail Europe and America into distancing them-
selves from Israel.

While supplies are adequate today, there is in truth
no "oil glut" in the United States as long as we import
about one-third of the oil we need.

Ominously, imports of oil to the United States are
on the rise again. We now import about the same
percentage of oil as we did just before the Arab oil
embargo of 1973.

The danger signs are clear for all to see: the war

between Iran and Iraq ..the attacks on tankers that
carry some 8 million barrels a day through the Strat
of Hormuz ..the basic instability in other Middle
East countries the endemic terrorist threat.

The challenge to our diplomatic flexibility and eco-
nomic security will continue... as long as we depend
on oil from the Arab nations that surround Israel
and until we take practical steps to achieve greater
energy self-sufficiency.

The means to reach that goal are realistic and
achievable.

The goal is realistic because we have— right here
in our country waiting to be found and developed -
vast quantities of energy.

Senator BUMPERS. Morris, I think this is one of the few times we ever had a disagreement. We do have a small disagreement on this, and we will talk about it later.

Ms. Moya.

STATEMENT OF SUSAN C. MOYA, MANAGER OF THE ENERGY AND NATURAL RESOURCES POLICY, U.S. CHAMBER OF COMMERCE Ms. MOYA. Thank you, Mr. Chairman. My name is Susan Moya, and I am Manager of Energy and National Resources Policy at the U.S. Chamber of Commerce. I am appearing today on behalf of our more than 180,000 members. Our membership is comprised of state and local chambers of commerce associations and 1500 in small businesses. I would like to point out that 90 percent of our membership is comprised of small businesses.

We appreciate this opportunity to express our support for S. 1217. Continued orderly oil and gas development with appropriate environmental safeguards is vitally important to our members. Dependable supplies of energy are essential for farms, factories, businesses, and transportation. Our members well remember the gas shortages and curtailments of the 1970s which resulted in schools and factories being closed and people being laid off.

They are concerned about the projections of oil imports exceeding 50 percent in the next year or two especially since oil consumption in the U.S. has exceeded production for more than 20 years. Growing oil imports subject the U.S. to extreme price fluctuations and supply disruptions. The current situation in the Persian Gulf, as witnesses have indicated, clearly underscore the need for the U.S. to develop its domestic resources, oil, coal, nuclear and others.

The coastal plain of ANWR represents the Nation's most promising on-shore frontier for major oil and gas prospects. We believe that by leasing the coastal plain now, oil could come on line just as the production from Prudhoe Bay is at a serious decline.

The Chamber recognizes that the coastal plain is prized not only for its oil and gas potential, but also for its valuable wilderness. And while we support oil and gas exploration and development on the coastal plain, we condition this support by saying that extreme care must be taken to protect the valuable natural resources of the coastal plain. And we believe that 1217 accomplishes this important goal.

Experience on the north slope has shown that oil and gas development can be compatible with the Alaskan environment and wildlife. We don't believe that the coastal plain should be an "either/ or" question. And I believe this point was clearly demonstrated to me during my visit to Prudhoe Bay and ANWR this summer. The Chamber's president, Dr. Lesher went on a trip and came to the same conclusion independent of mine. We believe that the technology and experience of the north slope activities will be used and improved in the coastal plain. The Chamber believes that the U.S. can meet its energy needs and provide a wilderness legacy for the future.

Authorizing the leasing of the coastal plain for oil and gas exploration and development could become America's insurance policy for tomorrow.

Mr. Chairman, thank you for the opportunity to be here and submit the Chamber's views.

[The prepared statement of Ms. Moya follows:]

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