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Energy Crisis, Part4 #225522

CBS Evening News for Tuesday, Jan 30, 1973
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(Studio) Energy crisis due to failure of industry and government programs. Policies limit supply and therefore price of oil. Govt. limits oil imports.
REPORTER: Walter Cronkite

(NYC) Foreign oil plentiful and cheap, and would be coming into United States more if quotas didn't limit imports. [Ford Foundation's South David FREEMAN - says oil shortage direct result of government programs to keep oil out of US.] 3 years ago task force concluded result of import restrictions was that oil prices $5 billion/yr. higher than would otherwise be. This makes extra American fuel bill of $24.00/per person. Price of foreign oil up now due to trans. costs. Argument for quotas is that foreign competition would drive domestic oil companies out of business. [Mobil Oil chairperson and American Petrol. Institute chairperson Rawleigh WARNER - says imports would damage industry.] [Secretary Interior Rogers MORTON - says imports would make us dependent on other cntries for fuel.] 25% oil comes from overseas. By 1985 will be importing 50%, according to Chase Manhattan Bank study. This year government increased imports by 1 million barrels/day. Many American oil companies have plants overseas because supply better and tax structure more favorable. [Former Senator Proxmire aide, attorney Martin LOBEL - says government feels what is good for big oil companies good for country This not true.] 3 years ago task force headed by George Shultz, now Secretary-Treasury, concluded oil import quotas unrelated to national security. Recommended abolition of quotas. Recommendations not adopted.
REPORTER: Robert Schakne

(Studio) Admin. reconsidering position on import quotas. Interior Secretary Morton considering alternative plans. Govt. concerned with balance of payments and how Arab states might react to increased United States trade. Oil depletion allowance given because companies use up assets. Formula allows companies to deduct 22% income from taxes.
REPORTER: Walter Cronkite

(No location given) [Congress Neal SMITH - says depletion allowance not fair.] In past 14 years, drilling down 40%. [MIT professor Morris ADELMAN - says' depletion allowance does Promote oil exploration, but amount incentive small in relationship to bill paid. Higher prices better incentive.]
REPORTER: Walter Cronkite (narrates)

(Studio) Next report examines changes proposed for oil production.
REPORTER: Walter Cronkite

Cronkite, Walter;
Schakne, Robert

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