Energy and the Oceans 



The oceans must play an increasing role for the United States during the next 

 15 years as we are forced into a difficult transition from primary reliance on 

 domestic terrestrial sources of fuel to substantial use of energy from offshore 

 oil and gas, from foreign oil and gas, and from nonconventional sources. NACOA 

 believes that time is at a premium in balancing proper safeguard of the environ- 

 ment with the Nation's need for the production of offshore oil and gas, the 

 importation and refinement of crude oil, and the placement of power plants in 

 the coastal zone. NACOA considers that the ocean is a medium in which sub- 

 stantial development of energy-related activities can take place at less environ- 

 mental cost than can similar growth on land. Its use for such purposes should 

 be furthered. 



A Difficult Transition Period 



The energ)' crisis describes a difficult transition period of perhaps 15 

 years as we are forced to go from reliance on domestic conventional crudes 

 for 65 percent of our national energy needs in 1971 to substantial utiliza- 

 tion of crvide oil from nonconventional sources, increased reliance on off- 

 shore oil and gas, buildup of our nuclear capacity, development of other 

 sources such as geothennal and solar energ)', and the importation of much 

 greater quantities of foreign oil and gas. 



NACOA concerns itself here with the part the oceans should be expected 

 to play in meeting the growing demand, for the problem of energy will 

 pervade most aspects of problems of high national priority in the decade 

 to come and no possibilities can be left unexamined. 



Crude Oil and Natural Gas Situation 



The domestic price of crude oil is rising as our supply situation tightens, 

 being above $4 per barrel for some low sulfur crudes. At this price it is 

 becoming economical to inject chemicals along with water to improve oil 

 recovery. Industry now recovers, on the average, slightly over 30 percent 



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