We do not have to look very far for evidence of this. Last summer there were isolated gasoline shortage in various parts of the country. However, this winter we face a widespread shortage of all petroleum products. What is more, with the lower oil production rates in the middle est and current embargoes, it is obvious that the outlook is not improving.
In this weeks and months ahead, we will face a dreadful set of problems. The most apparent ones involve fuel allocation and the possible gasoline rationing. As consumers we have already been asked to lower our heating units and to reduce our speed and pleasure driving and of course such actions will help us, but they cannot make up the shortfall in the energy supplies. It is inevitable that there will be some adverse impact on the economy itself in output and employment throughout the world the world. This prospect could push tensions even higher and pose a new danger to world peace. In short, the world is entering a period in which we and other countries must come to terms with a new set of energy realities not only just this year but for many years to come. The worldwide energy supply problem was beginning to take shape long before the recent events in the middle east had occurred. It will remain long after the current production embargoes are lifted. The question is whether we can make the necessary adjustments to them in a timely and orderly fashion. The stakes are large. if we fail to react with knowledge and effectively, shortages during the next ten to fifteen years may well be severe enough to have a very serious long term impact on the economic growth and living standards.