Economic disruptions we and others are experiencing stem in part from the fact that the world price of petroleum has quadrupled in the last year.  But in all honesty, we cannot put all of the blame on the oil-exporting nations.  We, the United States, are not blameless.  Our growing dependence upon foreign sources has been adding to our vulnerability for years and years, and we did nothing to prepare ourselves for such an event as the embargo of 1973.

During the 1960’s, this country had a surplus capacity of crude oil which we were able to make available to our trading partners whenever there was a disruption of supply.  This surplus capacity enabled us to influence both supplies and prices of crude oil throughout the world.  Our excess capacity neutralized any effort at establishing an effective cartel, and thus the rest of the world was assured of adequate supplies of oil at reasonable prices.

By 1970, our surplus capacity had vanished, and as a consequence, the latent power of the oil cartel could emerge in full force.  Europe and Japan, both heavily dependent on imported oil, now struggle to keep their economies in balance.  Even the United States, our country, which is far more self-sufficient than most other industrial countries, has been .put under serious pressure.

I am proposing a program which will begin to restore our country’s surplus capacity in total energy.  In this way, we will be able to assure ourselves reliable and adequate energy and help foster a new world energy stability for other major consuming nations.

But this Nation and, in fact, the world must face the prospect of energy difficulties between now and 1985.  This program will impose burdens on all of us with the aim of reducing our consumption of energy and increasing our production.  Great attention has been paid to the considerations of fairness, and I can assure you that the burdens will not fall more harshly on those less able to bear them.

I am recommending a plan to make us invulnerable to cutoffs of foreign oil.  It will require sacrifices, but it—­and this is most important—­it will work.

I have set the following national energy goals to assure that our future is as secure and as productive as our past: 

First, we must reduce oil imports by 1 million barrels per day by the end of this year and by 2 million barrels per day by the end of 1977.

Second, we must end vulnerability to economic disruption by foreign suppliers by 1985.

Third, we must develop our energy technology and resources so that the United States has the ability to supply a significant share of the energy needs of the free world by the end of this century.

To attain these objectives, we need immediate action to cut imports.  Unfortunately, in the short term there are only a limited number of actions which can increase domestic supply.  I will press for all of them.

I urge quick action on the necessary legislation to allow commercial production at the Elk Hills, California, Naval Petroleum Reserve.  In order that we make greater use of domestic coal resources, I am submitting amendments to the Energy Supply and Environmental Coordination Act which will greatly increase the number of powerplants that can be promptly converted to coal.