MINOR S. JAMESON, JR. 195 



Domestic consumers are utilizing an increasing amount of petro- 

 leum products for transportation, fuel, heating and many other as- 

 pects of consumer life. In the event of a national emergency, it is 

 essential to these consumers that there be adequate supplies at rea- 

 sonable cost, both now and in the future. The low cost of imported 

 oil is attractive, but excessive reliance upon it in the short run may 

 put the nation in a long-term vulnerable position. Imported sup- 

 plies could be cut off in an emergency and might well be dimin- 

 ished by events beyond our control. This vulnerability could easily 

 result in a much higher cost, or even in the unavailability, of oil to 

 consumers. It is therefore believed that the best interests of domes- 

 tic consumers, as well as of national security, will be served if a 

 reasonable balance is maintained between domestic and foreign 

 supplies. 



In conclusion, I want to re-emphasize what appears to me to be a 

 basic problem in the field of natural resource policy, particularly as to 

 petroleum exploration and development. This is the lack of adequate 

 information and adequate economic research, resulting in widespread 

 misunderstanding as to the unfolding process of converting nature's 

 "neutral stuff" into oil and gas resources. If petroleum supplies are im- 

 portant to our energy base for both economic progress and security, it 

 becomes important that changes in public policy be based on conclu- 

 sive evidence that gains from such changes unquestionably more than 

 offset probable losses. This should be the overriding criterion in any 

 study of natural resource problems and policies. 



NOTE BY MR. MASON I agree with Mr. Jameson on the impor- 

 tance of an oil cushion for security interests. It is a tremendous thing for 

 the West that at the time of the Suez crisis we had a sizable cushion in the 

 United States. 



There is no doubt that the percentage depletion and the system we have 

 in this country makes for a sizable cushion. In my paper I refrained from 

 discussing the security aspects of the oil industry. I was giving an econo- 

 mist's view of the problem — whether in economic terms you could justify 

 government intervention subsidizing oil discovery and development. Ob- 

 viously, all kinds of political considerations intervene in the determination 

 of policy with respect to natural resource use, all kinds of political con- 

 siderations that I did not attempt to take account of. 



