Energy 



The pattern of energy use underlies, shapes, and reflects a 

 culture. Few other factors impact so pervasively on human life. The 

 forms, quantity, and cost of available energy determine the possible 

 variety in human settlements; condition the economic and social 

 structure of society; and influence the direction and rate of economic 

 growth, level, and type of employment, forms of technology, methods 

 of food production, and life styles. Thus, sudden and significant 

 changes in the pattern of energy availability and use can be profoundly 

 disruptive — nationally and internationally. 



Consumption of energy on a worldwide basis has increased by 

 some 6 percent annually for several years. This amounts to a doubling 

 every 12 years of the quantity of energy consumed. For the United 

 States, growth in consumption averaged 4.3 percent over the past 

 decade, while rising to almost 5 percent in recent years. Growth rates 

 for most other developed countries have far exceeded those of the 

 United States in the last few years. Even so, the U.S. consumes a third 

 of all energy used in the world, while having only 6 percent of its 

 population. On a per capita basis, U.S. consumption is some six times 

 that of the world average, with the difference between the United 

 States and many developing nations being as much as a factor of 100. 



While the U.S. rate of demand for energy rose to nearly 5 percent 

 annually, domestic production grew at a steady rate of some 3 percent 

 annually. The result was an increasing reliance on imports — primarily 

 in the form of petroleum. In the first half of 1973, the United States 

 imported 17 percent of its total energy consumption, including 33 

 percent of its petroleum. The chief suppliers of the imported energy 

 were the Organization of Petroleum Exporting Countries (OPEC). 



In the fall of 1973, these nations quadrupled the price of imported 

 oil. It is estimated that, as a result of these higher prices, U.S. 

 expenditures for foreign and domestic oil alone will rise by $26 billion 

 in 1974. Furthermore, the same price increases are expected to add 2 

 precent to the U.S. inflation rate in 1974. 



Preceding these developments by a few months was a directive 

 from the President to the Chairman of the Atomic Energy 

 Commission to"undertake an immediate review of Federal and private 

 energy research and development activities. . .and to recommend an 

 integrated energy research and development program for the Nation." 



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