1968 - Energy

Energy

U.S. natural gas consumption begins to exceed new gas discoveries and reserves for interstate pipelines begin falling (see 1964). The industry blames artificially low prices established by the Federal Power Commission for having discouraged exploration for new reserves at a time when FPC actions have increased demand for natural gas. Some independent economists agree.

Oil discovered on Alaska's North Slope proves to be the largest reserve north of the Mexican border; petroleum companies join forces to establish the Alyeska Pipeline Service Co. to bring the oil south to the ice-free port of Valdez, whose facilities have been rebuilt since the earthquake of 1964, making it favored as a port for shipment by tanker to world markets, but a debate begins as to the environmental impact of the pipeline (see 1969).

Peru's president Juan Velasco Alvarado seizes the International Petroleum Co.'s La Brea and Pariñas oil fields without compensating IPC's owner, Standard Oil Co. of New Jersey.

An explosion at a Consolidation Coal Co. mine along Buffalo Creek at Farmington, W. Va., November 20 kills 78 people. Three more are killed December 12 in a fire at a Buffalo Mining Co. mine at nearby Lyburn. Buffalo Mining is a subsidiary of Pittston Co. (see 1972).