BACKGROUND PAPER ON ENERGY CRISIS FOR GENERAL WALTERS' LATIN AMERICAN VISIT

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP80B01495R000500130021-3
• Release Decision: RIPPUB
• Original Classification: C
• Document Page Count: 3
• Document Creation Date: December 16, 2016
• Document Release Date: July 22, 2005
• Sequence Number: 21
• Publication Date: February 4, 1974
• Content Type: MF

4'/o `d/ 7'/? - 741
Approved For Rel a 2005/08/03: CIA-RDP80BO1495R000500130021-3
r----~ CONFIDENTIAL
[IV
Office of the Director of Central Intelligence
4 February 1974
MEMORANDUM FOR : Deputy Director for Central Intelligence
SUBJECT : Background Paper on Energy Crisis for
General Walters' Latin American Visit
1. Pursuant to your request for a background paper on energy
for use on your visit to Latin America:
(a) Attached is a memorandum on this subject I
prepared for the Director a fortnight ago; with continents
added below it is still current.
(b) I cannot improve upon the extensive menu of
facts and figures in our weekly oil report -- International
Oil Develonents -- which I assume you see regularly.
2. To the above I would add a few obse_vations that might
have relevance and utility in conversations on your trip.
(a) The energy crisis is real; prudent leaders will
assume that it will be with us frcm here on out.
(b) Many of the current manifestations are artificial the short-term results of calculation and miscalculation by
men with diverse motives. We are all muddling through the
current phase.
(c) The price of energy is still the price of the
market barrel of oil fran the Persian Gulf. The bulk of
oil moving this week is still handled by the "majors" and
their oil is still the best bargain for the buyer. This
week it is pegged at $7.00 for the producing government,
plus 50~-80c profit for the ccmpany. Production costs are
.) P~IE;nn : :-1-. 1
1
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Approved For Release 2005/ U3 ! G"li4~ RD04dg11'495R000500130021-3
 Approved For Rele 0 5;(Q$/03.:-C1Ai-RDP80B01495R000500130021-3
1ving easily i -
leveled off . n the market. q T__
tanker rates have
oil is not
11 negligible (10~ 0 barrel) 2 00 and tanker
st1 The $18.
intolerable for all c
demand are more or less in and
imposed controls continue
n 1974.
r (e) World supply and surplus i
balance nOw ? If vo1untarYtere will be s~1endul, swings back
and the embargo ends, d the pe d 1976
misread ancontro 1975 an
henaaenon is andoned is
if this p
rooted energy and econMic
to profligate edeeeply
could bring Vor e
problems. for political Purpo shoId
the use of oil ~unties is
the OPEC s
of oil earning
? of the life
(f th in most
aside-
production down and stretch out ope all face f ar-reaching
and of energy will be
(g) The U.S., Japan The increased cost the USSR as an
biggest
es in lifestyle. The future of tie ti on and
chang Eastern Europe* certain-But serious for is by no means food produc
energy e)Torter
e energy crunch will p ulation growth le)
th with pop for eX np
impact of ?
the econ -eS of control(S India, 1974 will give a new
virtually out of and population in fore the year
The UN focus On fst to the energy crisis be
and more serious
is out.
Attachment
James H. Critchfield
NIO/Eny
Approved For Release 2005/08/03 : CIA-RDP80BO1495R000500130021-3
 Approved For Release 2005/08/03 : CIA-RDP80BO1495R000500130021-3
MEMORANDUM FOR:
%PY4
jrILC 1;'l
/INFO ,r
Attached are some interesting comments on the
energy crisis by Jim Critchfield (for General
Walters upcoming Latin America trip.)
Critchfield's original memo, sent to us by
mistake, has been returned for proper forwarding.
25X1
4 Feb 1974
(DATE)
FORM 101 RELACES FORM 10.101
I BE USED.
Approved For Release 2005/08/03 : CIA-RDP80BO1495R000500130021-3