Statement Following a Meeting With Energy and Environmental Advisers on Energy Conservation.

A MEETING I held this afternoon with many of my top energy and environmental advisers has underscored once again the need for a full-scale effort to conserve energy.

It is now widely recognized that we may face fuel shortages for the next few years. The shortage of heating oil this winter could be as high as 400,000 barrels per day. If every household will lower its thermostat by just 4 degrees this winter, the total savings in heating oil alone will exceed that 400,000 barrel-per-day figure. This is what conservation by all our citizens can accomplish.

A more prudent use of energy must be made at all levels--by government, by industry, and by private citizens. This June, I directed that action be taken throughout the Federal Government to reduce anticipated energy consumption by a total of 7 percent, and I urged industry, State and local government, and the general public to participate in efforts to reduce expected energy demands across the Nation by 5 percent over a 12-month period.

Our meeting today was to assess the progress made so far and to discuss plans for the winter phase of our national energy conservation campaign. The most encouraging report came from Secretary Morton, who said that the Federal agencies have made an excellent start toward achieving their goal of a 7 percent reduction in energy consumption. Just as a single example, the General Services Administration in the District of Columbia has taken steps which should result in a savings of 164 million kilowatt hours of electricity annually, reportedly enough electricity to supply the entire city of Washington for several days. Among the actions being taken by the Federal agencies are:

--a lowering of winter temperature settings to 70-72 degrees, compared to last year's level of 74-76 degrees;

--elimination of unnecessary lighting; and,

--purchase and rental of vehicles which use gasoline more efficiently. Also in today's meeting, Secretary Dent outlined to me his proposed program to encourage business and industry to save energy. As industrial use accounts for 40 percent of all energy consumption in the United States, our business leaders have a vital role to play in this effort.

Mrs. Knauer reported this morning on her efforts to provide consumers with the information they will need to use energy wisely.

Finally, I received a report on energy conservation from my Citizens' Advisory Committee on Environmental Quality. This Committee is chaired by Mr. Henry Diamond of New York and includes 15 of the Nation's leading citizens. Its report, which will receive wide distribution, makes extensive recommendations for citizen actions to cut back their energy demands.

Our campaign to meet America's energy needs is not confined, of course, to conservation. We are also pushing to increase supplies through both executive and legislative means. We have already taken a number of executive actions, such as accelerating the leasing of offshore oil rights, and if other steps should become appropriate, I will not hesitate to take them. On the legislative front, there are still seven major proposals awaiting passage on Capitol Hill, and I am anxious that at least four .of these bills be enacted before the end of the year.

In addition, we are asking that all citizens be prepared to bear their share of possible shortages. To that end, the Administration has just announced its decision to establish a program of mandatory allocation for home heating oil and propane. It should be understood that this action will not increase available supplies, but will merely distribute supplies so that, insofar as possible, no areas will face critical shortages and any possible inconveniences will be shared equally by all Americans.

Our energy program is thus all-embracing. We must act to increase supplies, and we must insure a fair distribution of those supplies. But equally important, we must not consume more than we need. We must not waste energy.

Whenever Americans have been called upon to join together and work together in the national interest, they have responded. We need the united action of all Americans now to conserve the fuel we must have to meet our vital energy needs.