President readv to act against oil giants

Press, 12 April 1979, Page 7

President readv to act against oil giants

NZPA-Reuter Washington l President Jimmy Carter] has told United States oil' companies he favours Gov-1 ernment action, if needed. to| make them use extra profits | for new energy exploration. I Mr Carter ' said that the country had a right to expect that profits stemming i from his plan to lift price (controls on domestic oil would be used for increased production. I He said his plan — allready under fire in Congress — would provide oil companies with SUS 6 billion in profits, even after new legislation.

Congress has traditionally been opposed to such legislation and Senator Henry Jackson, chairman of the influential Senate Energy Committee, launched a move to stop the President from phasing out price controls. Mr Carter has announced he will gradually lift price controls over a two-year period beginning on June 1, so that the price of United States crude rises to world levels.

A refusal by Congress to approve the plan, he argued, would be a “wholly unjustified giveaway to the oil companies.”

Asked at a press confer-; ence what action he would take to ensure that oil com-i panies use their profits for] exploration and increased ] production, Mr Carter said: ] “. . . I would favour any' constraints placed on oil companies by the Congress or administratively within my own influence to encourage that use of increased revenue for oil and gas research.” After the President’s statement, the Senate Energy Committee decided to delay further debate on two of the more controversial aspects of the plan that deal with petrol rationing and weekend closing of service stations.