WSP04356

• File Number: 8040.200
• Description: Section D General Studies-Energy
• Date: 11/21/1974
• Author: Helene C Monberg
• Title: Energy-Oil Shale-Western Resources Wrap Up-Series X No 47-Energy Policy
• Water Supply Pro - Doc Type: Report/Study

4-WRW washn x x x of
4-2 percent annually from 1950-70. but it is only increasing at half
that rate now due to high foreign oil prices.

NATURAL G!\S: The nation is consuming "two or three times as much
natural gas as we are finding" in this country. and this is likely to
continue to be the case. regardless of prices because natural gas is
such a clean, environmentally acceptable fuel. If natural gas were de-
regulated, production could rise from 22.4 trillion cubic feet in 1972
to 24.6 trillion cubic feet by 1985, with Alaska providing most of the
increase at 1.6 trillion cubic feet a year. No major increases in do-
mestic production are likely to occur until 1980 regardless of price,
however, because of the long lead time it takes to bring natural gas
into production and because much gas production js dependent on oii
production. continued regulation of natural ~Y~ld result in cut-
ting production by one-third by 1985. Production of natural gas after
1900 is expected to be highly responsive to price particularly from off-
shore (oeS) areas and from "Pet. 4" in Alaska. if it is opened for de-
velopment.

C~L: From the 1940's thru 1965 coal production remained about con-
stant, but it began a slow annual increase in the 1965-73 period. from
527 million tons in 1965 to 599 million tons in 1973.OUtput could go up
to 1.1 billion tons by 1985, particularly if world oil prices remain
high. Major increases in coal production have occurred in recent years
in the Northern Great Plains region, up 433 percent, and in the Rocky
Mountain Region. up 85 percent. between 1965-1973. Coal's share of the
energy market slumped from about 50 percent in 1940 to only 17 percent
in 1972 in this country. But coal supplied about two-thirds of the
fuel for the electric power generation market in 1973. and this market'
may continue to grow rapidly despite a sl~'1M\~ in ilJ~ 'Annual growth
rate in electricity from 7 per cent annua!t'J~o.gape~cent this year.
coal i~ @ur most abundant fuel. and if nuclear power plant development
falters and if utilities convert their generating units from oil and
gas they must. of necessity in most instance~c~ose coal. Because of
rapid increases in the cost of mining coal underground--costs climbed
109 percent from 1965-1973, surface mining production has increased to
a point where about half of all coal is surface-mined. Per man-day
production of coal mined underground has decreased from 15.9 tons to
11 tons. nearly 30 percent, in the past five years due to enforced com-
pliance with the 1969 coal Mine Health and safety Act and labor unrest.
Altho our coal reserves are projected to last from 500-800 years at pre-
sent rates of use. coal production has lagged for many reasons: uncer-
tainty over long-term markets. federal leasing moratorium on Western
coal lands. Clean Air Act restrictions on the use of the high-sulfur
Eastern coals, uncertainty over surface mine control legislation. and
government policies relative to oil imports. natural gas price controls
and nuclear plant development. As a result of these uncertainties. naw
coal mines are not being put into operation. If they are eliminated.
present coal shortages could be alleviated in 3-5 years, If they are
not. "coal shortages could endUre indefinitely." Environmental concern,
laws and regulations have and will continue to restrict development. ,~

0176