The Economy: Some Ways to Cut the Waste

By far the most profligate of energy users, Americans burn one-third of the world's oil—or more than 16 million bbl. a day. Much of that precious petroleum is wasted, guzzled up in two-ton cars that carry one person to the office, or burned up in poorly insulated houses that are overheated in winter, overcooled in summer and overlit year round. All the talk notwithstanding, Americans have not yet begun to conserve. As soon as last winter's oil embargo started leaking and the gasoline lines began shrinking, people quickly stepped on the gas and turned up the thermostat. Sooner rather than later, however, Americans will have to learn to live with less. The U.S. now imports 6.2 million bbl. of oil a day. The Federal Energy Administration reckons that the total could be reduced by a number of measures that would conserve oil without basically changing American life. For example:

HEATING. If users of fuel oil were allocated only enough to heat homes to 68°, and reductions of several degrees were made in plants and office buildings, the saving would be 250,000 to 300,000 bbl. a day. If users of natural gas and electricity were penalized with progressively stiffer rates for usage over 90% of their last winter's consumption, that would free more energy supplies, and another 200,000 to 400,000 bbl. of oil could be saved.

LIGHTING. Cutting the lighting levels in nonresidential buildings to no more than is needed could save as much as 700,000 bbl. a day. For example, removing one lamp from three-bulb fluorescent fixtures has already reduced energy use significantly in many federal buildings.

INSULATION. The FEA figures that a 25% tax credit for such purchases as storm windows and doors, and insulation for unfinished attics could lead to a reduction of 50,000 to 100,000 bbl. a day.

INDUSTRIAL POWER. Because the potential for savings varies from plant to plant, there could be no hard guideline, but federal experts estimate that industry could reduce consumption by a minimum of 15%, saving as much as 300,000 bbl. a day. Example: exhaust heat from gas-fired turbines could be used instead of oil to process sulfur. Using coal instead of oil in power generators and factory boilers could save a further 500,000 bbl.

DRIVING. A 100 per gal. gasoline surtax could save as much as 450,000 bbl. of oil a day. A 300 charge could conserve 750,000 bbl. a day. The FEA bases these estimates on recent experiences of how much gasoline demand went down as prices went up.

Thus, taking just these measures, the U.S. within a year could cut more than 2 million bbl. from daily usage. Given the political will, the nation could make even more enormous savings in ensuing years. The ripest area for cutbacks is in transportation, which uses 60% of all oil consumed by the U.S. The FEA has worked out a comprehensive program of a 300 per gal. gasoline surtax, mandatory fuel efficiency standards for new cars, high excise taxes on low-efficiency autos, and additional spending and operating subsidies for mass transit. Anticipated extra savings: 1.7 million bbl. a day by 1980, rising to 2.3 million bbl. by 1985.