The prosperity and security of the whole Free World depend on sufficient availability of energy on satisfactory economic terms. Daring the next ten to twenty years, oil will provide the mainstay of the world’s energy supplies.
In practical terms, because of the size of known reserves and the lead time for finding and developing new oil and other energy resources, the world’s growing needs will be supplied predominantly by huge increases of oil imports from the Middle Eastern –mainly Persian Gulf area.
Directly connected with the anticipated large advances of oil imports, the consuming countries will face another set of problems. The cost of oil imports will rise tremendously with extraordinarily difficult implications for the balance of payments of many consuming countries.
There will also be serious problems caused by unprecedented foreign exchange accumulations and the international use of such funds in the case of some of the major oil producing countries, such as Saudi Arabia and Abu Dhabi.