CONOCO'S NICANDROS CALLS FOR U.S. GASOLINE TAX HIKE

Conoco Inc.'s president and chief executive officer last week urged an immediate 25/gal U.S. gasoline tax increase as part of an effort to conserve energy.

Constantine S. Nicandros said the tax increase should be raised to 50/gal during the next 5 years.

In remarks prepared for delivery at the Canadian Energy Research Institute's international conference in Calgary, Nicandros said such a measure is required because "it seems impossible to encourage people to drive less if gasoline is cheap. Even after recent increases, Americans spend less than 3% of their income on gasoline, compared with about 4.5% in 1978."

Nicandros said a large part of increased tax revenues should go toward energy development incentives and improvements in the transportation sector-deepwater ports, highways, and bridges, for example.

And provisions should be made to cushion the blow from higher gasoline taxes for low income citizens and those who live in remote areas where long distances must be driven regularly.

ENVIRONMENT, CONSERVATION

Nicandros said he is "not pleased" at suggestions the world energy problem could put environmentalists on the defensive.

"Our sudden, pressing need for added oil supplies should not mean an end to everyone's vigilance in regard to the environment," he said.

"I do not seek to put anyone on the defensive about protecting our environment. I do hope to prove through Conoco's actions that we are capable of securing energy while satisfying environmental needs. If there must be a victory in this matter, let all of us be winners."

He called conservation, alternative fuels, and diversified supply critical components of efforts aimed at managing energy security.

"In less than 2 decades, we have had three very distinct warnings that clearly showed the value of such measures," Nicandros said. "it is time for us to stop ignoring these warnings."

The Houston executive said the U.S. must acknowledge that it cannot depend on Japan and Europe for all the conservation in the world. "We must begin our own (U.S.) conservation measures and we must begin them immediately."

He called for positive plans and actions to promote energy security. That's because today's situation is more serious than the oil shocks of the past, Nicandros said. "This time-for the first time-there is a physical shortage of the world's oil production capacity."

He pointed out that the oil industry is still recovering from its private depression that began 4 years ago.

"So far," he said, "I am grateful we have not been handicapped in the U.S. by rigid government rules. I believe today's situation is manageable if governments, our industry, and the public continue to maintain the mature, pragmatic approach to the problem that has been shown so far."