Project Independence is President Nixon's response to the Arab oil embargo and the subsequent energy crisis. Nixon's goal is to achieve self-sufficiency of energy supply in the United States by 1980 or before by the least costly means possible. The oil embargo demonstrated that relying upon foreign oil supplies that may be stopped by a hostile sovereign, subjects this nation's energy supply to its foreign policy decisions and vice-versa. In order to break this relationship, Nixon launched Project Independence on January 19, 1974. A blueprint or masterplan designed to fulfull this goal is being worked upon by the Federal Energy Administration (FEA) and numerous other agencies. While planning for energy policy is laudable, it appears that this program may merely be paying lip service to environmental and consumer interests.

The dollar cost of foreign oil has been less than domestic oil. As a result, increasing amounts of oil have been imported so that foreign oil has come to constitute a steadily rising percentage of total American consumption of energy. A report of the Council of Economic Advisers¹ predicts that foreign oil will soon be more expensive than domestic oil. Governmental action would then be unnecessary, presuming that market factors would cause a shift toward reliance upon domestic sources. However, the weight of evidence indicates that, in fact, domestic oil will remain more expensive than foreign oil. If no action is taken, it seems likely that the United States will return to its previous reliance on foreign oil supplies.