Economic Report of the President

and we have provided job training for workers who needed newskills.Much attention is now focused on how to reduce the costs andease the burden of Federal regulation to protect the environment,health, and safety. Concern about excessive regulatory costs is surelywarranted, and my Administration has taken a number of specificsteps to deal with the problem. In focusing attention on the burdenof regulation, however, we should not lose sight of the substantialprogress that has been made in enriching our lives, improving ourhealth, and beautifying our country.Tackling Difficult IssuesDuring the past 4 years the Nation has taken a series of importantand in some cases painful steps to deal with its energy problems.Starting almost 2 years ago, we began to phase out controls on domesticoil and natural gas prices. We thus moved to end the dangerouspractice of holding U.S. energy prices below the world marketprice, a practice which tended to subsidize wasteful consumption andperpetuate our excessive dependence on oil imports.Working with the Congress we also put in place the other principalelements of a comprehensive program to increase energy productionand conserve energy use. We levied a windfall profits tax to divert theinevitable windfalls from oil decontrol to pay for the National EnergyProgram initiatives and to reduce the impact of decontrol on the poor.Partly as a result of these policies we have begun to see dramaticresults in both the supply and conservation of energy. There are now70 percent more drilling rigs in operation than when my Administrationtook office, and the number of oil and gas wells being drilledhas reached a new record. By late 1980 the United States was importingalmost 30 percent less oil than it did 2 years ago and our gasolineuse had dropped by more than 10 percent over the same period.While some of the reduction in energy use was due to the recession,most of it reflects real energy conservation.What has happened in energy policy over the past 4 years augurswell for our country's future. Decontrolling domestic oil and gas waspainful. It pushed up the prices each of us pay for driving and forheating our homes and added to our immediate inflation difficulties.But we showed that we were willing to take such painful steps whenthey were necessary in our Nation's longer-run interest. Because weare large-scale producers as well as consumers of energy, the energyproblem was potentially a highly divisive issue in our country, involvingthe redistribution of hundreds of billions of dollars, pitting produceragainst consumer and one region of the Nation against another.But after prolonged and sometimes heated debate, we arrived