Page 2-Tuesday, May 22, 1979-The Michigan Daily ADMINISTRATION BLAMES GAS SHOR TAGE ON MIDEAST UNREST Executives deny withholding oil to raise pri Conftnaedtrom Page 1) "I DON'T KNOW of any oil being O'Leary said he doesn't know of any demand. "significantly short" of the crude oli withheld for higher prices," said James easy ways for oil companies to stretch The chairman of the energy commit- needs. DeNike, a vice president of Shell Oil Co. their tight supplies any further. tee, Sen. Henry Jackson (D-Wash.), Price said the ultimate solution to the DeNike said his firm could use The problem is less crude oil and a said this year's shortage is a re-run of energy crisis involves increasing the another 1.5 million barrels of imported higher demand, especially for gasoline, the 1973 Arab oil embargo. This time, country's use of coal and synthetic oil daily to keep its refineries running at O'Leary testified. he said, the Mideast oil countries are fuels, more conservation and added is. capacity. a"THERE IS A shortage," O'Leary n limiting production in order-to drive up centives for the oil companies to ex- "I can't answer that," O'Leary said. said, "and the fault for that shortage is the price. plore for more oil and natural gas. He acknowledged that some oil is the revolution in Iran." Iran has "There is no reasonable limit to that Annon Card, a Texaco vice president proba bly being held back, but said resumed production, O'Leary said, and in the short run," Jackson said said world crude oil shortages likel companies doing so may be acting only now is world production coming J. W. PRICE, vice president of will continue into the 1980s. prudently to maintain their inventories. roughly in balance with daily world Chevron, testified his company is Europeans accuse U.S. of guzzling oil PARIS (AP) - European energy ministers yesterday accused the United States of guzzling the world's oil resources and warned of serious economic consequences if oil shortages persist. U.S. Secretary for Energy James Schlesinger told accusers at a meeting of ministers from 20 industrial nations they would have to be patient until America resolved the debate as to "whether or not there is a real problem with regard to oil." The ministers were meeting as mem- bers of the International Energy Agen- cy, an organization intended asa sort of Western counterweight to the Organization of Petroleum Exporting Countries. The United States is a mem- ber of the organization. IN A TOUGHLY worded speech, released outside the closed-door session, Guido Brunner, energy com- missioner of the European Economic Community, charged that Americans were consuming twice as much oil per person as Europeans. "Neither the world economy as a whole nor the international monetary system will be in a position to sustain American oil imports at the present magnitude," Brunner said. Schlesinger replied that while the oil squeeze "seems to be self-evident to members of the IEA and to OPEC, it is not self-evident to the people of my, country, nor to the Congress." THE IRANIAN revolution had brought forward "the day of reckoning, tightened the oil markets and created a position in which our logistical systems are stretched taut," Schlesinger said. "While there is a great debate in the United States whether the oil shortages are real or whether they were contrived by some mysterious force, I think that the message is getting through to the American people." He said U.S. consumption was sub- stantially below last year's level. Seeking to mollify those ministers in whose countries motorists pay two times as much as Americans for gasoline, Schlesinger said he was sure the United States would be able to in- crease its oil prices to the level of the in- ternational market. SCHLESINGER did not elaborate. Prices for gasoline among European Common Market countries range from about $1.40 a gallon for regular gas in Britain to $2.47 a gallon in France for premium - including much higher taxes than in the United States. In Washington, oil company executives clashed Monday with Senate opponents of President Carter's decon- trol program over whether the industry was withholding fuel from the market until it could obtain higher prices. Carter's plan phases out federal price controls on domestic crude oil starting June 1. THE EXECUTIVES denied that fuel was being withheld for higher prices. James DeNike, a vice-president of Shell Oil Co., said the U.S. problem is low domestic oil production. The IEA ministers, in a strategy session on policies for dealing with oil supplies and prices, heard reports that warned of a worldwide economic crisis if oil shortages continue unabated. The bleak picture was dramatized when Sweden, whose economy was un- til recently one of the strongest in the world, asked for emergency aid from other participating countries to make up a 17 per cent shortfall in oil supplies. Organization members are pledged in a contingency plan to provide each other with emergency supplies. THE CURRENT meeting is intended as a follow-up to an October session in which members were asked to cut their imports. But Brunner claimed that ef- forts to reduce imports had failed so far, "because the United States was not in a position to act accordingly."' _ T-BONE - _ -RIB-EYE CHOPPED BEEF - $23 SAVE AFTER 4P.M. -. a KsEXA U.S. criticism angers .Iran (Continued from Page 1) ginia said, "I am glad Iran has taken notice of the Senate action." YAZDI WARNED that the future of U.S.-Iranian relations is in American hands, and reminded Washington of a commitment by Secretary of State Cyrus Vance to "friendly" relations between the countries. Yazdi said it was only natural that criminals of the old regime should be punished now. Revolutionary courta have condemned 213 people since February. "A revolution has taken place in our country, he said. "What surprised us is the fact that the past regime killed our youth, but the U.S. Senate maintained silence on these killings." THE 79-YEAR-OLD Iranian revolutionary and religious leader, Ayatollah Ruhollah Khomeini, delivered a blistering attack on the Senate resolution on state radio Sunday and newspapers yesterday proclaimed the darkest era in U.S.-Iranian relations since the revolution toppled pro-American Shah Mohammad Reza Pahlavi's monarchy in February. The Mojahdeen guerrilla group, a heavily armed political and military body, has said that a day of anti- American protests will be held Friday. Sadegh Ghotbzadeh, the chief of Iranian radio and television and a close aide to Khomeini, said in an interview yesterday that Iranians could not all be expected to differentiate between U.S. government policy and the declarations of an independent Senate. "Unfortunately, the actions of Americans overall in this country have been so abusive in the past that it is practically impossible at this time to try to differentiate one element from another," he claimed. 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