Page 6 THE BATTALION
THURSDAY, NOVEMBER 20, 1980
Local
,o
Gas price increases proposed
By SUZANNE HEMBY
Battalion Reporter
Most Americans have little feeling
for how much energy the United
States consumes, said an oil com
pany representative Wednesday.
“Since we never really see the
gasoline that we buy, we just don’t
see how much we use,” said James
Williams, of Arco Oil and Gas Com
pany. Williams presentation, enti
tled “Economics and Energy,” was
sponsored by the Student Advocates
of Free Enterprise.
MSC Town Hall
is conducting a
T
A S
L E
E A
N R
I C
H
Are you a star waiting
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Do you sing in the shower?
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Talent contest:
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He discussed the way OPEC
gained control of the oil market. Be
fore the 1970s, imports were control
led by limits, the rest of demand in
the United States was controlled by
limited production, he said.
Domestic production peaked, yet
Americans kept using energy at a
staggering rate, and the only margin
al source of supply became imported
oil.
Imported oil which previously
comprised 20 percent of total oil con
sumed in the United States soon
climbed to 50 percent, he said.
In 1973, price explosions occur
red, and OPEC gained control of the
oil market.
Williams said that OPEC had tried
to raise the price of oil earlier, but
that the United States had an ade
quate surplus, so their plan did not
work.
He said that at this time our re
sources are concentrated in the form
of coal, while we consume mostly oil
and gas.
Gasoline is our major focus of
energy today, he said. “We consume
294 million gallons of gasohne a day. ”
Williams suggested inflating the
price of gasoline or artificially res
tricting its supply to decrease the
demand for the dwindling supply.
The oil market does respond to price
changes, he said.
“When the price increases, con
sumption of gasoline falls, (and)
when the price decreases, consump
tion increases,” he said.
Higher priced gasoline will not
only decrease demand, but also in
crease production, the oil company
representative said.
“We started getting increased
prices in 1974, and wells took off im
mediately,” he said.
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