1979_05 The Daily Collegian May 1979

              The Daily Cahegian
Britain study courses offered
A 'behind the scenes'
Tht Daily Cafcgian
*V'
The oil shortage: Why the gas flow has slowed
Study of business practices
A summer tour to study business
practices in Great Britain will be offered
through the Extension Division at CSUF
July 2-14.
Dr Paul Lange, chairman of the De¬
partment of Finance and Industry in the
CSUF School of Business and Adminis¬
trative Sciences, will conduct the study
He said the course will include a
number of field trips to a variety of
business establishments in government,
manufacturing, retaining, insurance and
banking Participants will be given
is opportunities to hold informal
with specialists in a cross-
The tour also will Include visits to
fashion houses, international advertising
agencies, a trade center, auction houses,
antique markets, the world's largest
gold and silver markets and a planned
The study tour is being offered for
three units of credit at a cost of S395
including room, breakfast, tuition
and other costs related to trie course
An optional fee of J862 includes air fare
from Los Angeles or Oakland.
The deadline for applications is May 1
A $25 deposit is required.
For further information, contact the-
CSUF Extension Division at 487-2549.
look at life in Britain
An eleven-day summer extension
course featuring a "behind-the-scenes"
look at life in contemporary Britain will
be offered by the Extension Division at
California State University, Fresno,
July 17 through 27.
The three-unit course, under the in¬
struction of Dr. Lester J. Roth, will
feature lectures and field trips in and
around London on the' national health
service, crime and courts, Parliament,
city government, the British broad¬
casting system, the British museum,
London art galleries, schools, theatre
and pub crawling.
Students will be housed in the Univer¬
sity of London student dormitories,
but will spend one night in the home of i
British host family to gain a more inti
mate view of life in Britain.
Enrollment for the course is limited tc
20  participants   and   advanced   reser¬
vations are required. A course fee of
$755 includes air fare from Los Angeles
or Oakland,   room,   breakfast,   Educa- •
tional Development Association of Creat 1
Britain charges, tuition fees, Foundation 1
costs and contingency fees. A deposit of  f
$50 is required by May 1.
For further information or to apply for
enrollment, contact the CSUF Office of
Continuing Education at 487-2524
Founder of Gray Panthers is no little old lady
She's spunky, spirited, and wears a
'no nukes'button At 73, the founder of
the Cray Panthers, Maggie Kuhn, is no
little old lady Not by a long shot
Nine years ago, she was forced to re¬
tire after 45 years of working So she
founded  the Cray  Panthers,  a  senior
The group was much needed and has
made progress during the last nine
years, according to-Kuhn
Kuhn was on campus last Thursday
and Friday to discuss the Cray Panthers
and the need for further action in the
area of  rights for senior citizens and
'A lot can be gained from looking
at older, oppressed people Largely I'm
romDlaining. We need massive social
social change,* she said.
Social service programs for the old,
she said, are like Novocaine. "These
programs take society off the hook and
are patronizing Somebody else decides
what you want, if you need it. Older
people aren't asked People ought to be
speaking out- not with gratitude or self
pity, but with outrage
'In speaking out you will encourage
others to bring out change. It won't
happen if you keep quiet," she said.
Not only did Kuhn emphasize the need
for social change for elderly people but
also for women in general.
'I like to think of myself as liberated.
This is the age of liberation, self deter¬
mination and freedom I think it's im¬
portant for women to get the message,"
where is the oppression of powerless J
people greater than the way in v
society treats women."
There  was  a  time,   she  explained,
when  a  woman   had  to   "look   li'
schoolgirl, dress like a lady, think like   I
a man. and work like ahorse '
roles,   she   explained,
"We've got a big job to do. Men are J
being    programmed   also.    We   have*
discovered  humanity  ii
We have to speak out "
Schroeder edges Ullmann for Senate chair
Joan Schroeder was voted in as
chairman of the Academic Senate for
the 1979-80 academic term, upsetting
current    chairman     Richard    Ullmann
Schroeder, who is the chairman of
the Academic Policy and Planning
Committee,  received  25  votes  at  the
Academic   Senate   meeting   yesterday.
Ullmann received 23 votes.
Ullmann was seeking reelection after
filling the chairmanship vacancy
in February when William York accepted
the job of special assistant to the
President
Roger   Lajeunesse   won   the   vice-
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chairmanship,  running  unopposed  for years-while Ziegler received the two-   (
the position. year term - aat !■
Both positions of chairman and vice-        Frank  Powell  was  voted  :-   —  "--
chairman are one year terms. CSUC     Academic     Senate
Although Judy Rosenthal was the only to the Executive Committee
name on the ballot for Academic Senate
secretary, she did not win the position.        Nominations  for   the  election
Both John Barte and Janet Bochin were accepted at last Mondays Acaden
write-in candidtes, with Barta winning Senate meeting.
the majority of the vote At   the   time,   Lea   Ybarro-Sorrii
I    David  Quadro  and  Stanley   Ziegler and   Frank   Powell   were   nomina
the membership to the Executive as members-at-large      However,  both"
littee       as       members-at-large submitted written withdrawals from the
won   the   longest   '
The fact that there is a gas shortage in
this country is not a closely guarded
secret. Most people have had the exper¬
ience in recent weeks of driving up to a
gas pump only to see an "Out of Cas To¬
day" sign, and everyone has had the
experience of paying increasing amounts
for the gas they can buy
What is not so clear are the reasons
behind the shortage. Is there really a
resource shortage? Is it all a hoax per¬
petrated by the oil companies? What is
our government's role in the affair?
What is OPEC?
''Where will it?" Or. Don Leet of the
economics department, feels that there is
a reason  to be optimistic about the
First of all, he points out that while we
may be shocked to pay 804 per gallon of
regular gas, 'the price of gas is consider¬
ably higher around the world"
Leet also notes that Iran has begun
to produce oil again, and they are up to
about 50% of their peak consumption of
6 million barrels a day.
Leet discounts popular American no¬
tions of OPEC as the heavy in the over¬
all picture
He points out that they presently
charge about $15 per barrel, which is
only about J3 more than the price Kiss¬
inger agreed to over 5 years ago. That
increase is almost all accountable to
inflation, so OPEC has actually been
reasonably fair Of course, Leet also
notes that the "lifting cost" (taking the
oil out of the ground) in Saudi Arabia is
only 504 per barrel, so they are making a
huge profit
OPEC is a "cartel", which means a
group of producers who attempt to act
together as a monopoly Cartels, which
are illegal in the United States, 'usually
become unstuck because someone
cheats," according to Leet. However
this has not happened with OPEC
because of the unique situation of
Saudi Arabia
Saudi Arabia could produce an incred¬
ible 10 million barrels a day, but their
population is only 7 million and they just
don't need the capital Therefore, they
voluntarily limit their production and
allow the other OPEC nations to produce
at peak capacity and make peak profits.
Those other oil-producing nations are
therefore much better off in a controlled
group  than  competing  on   their  own
against the impressive resources of the 1950's. During those years gas   prices
Saudis in the United States were fair and the
While  OPEC  will   probably   remain 'real  price"  (discounting  inflation) of
stable, Leet sees other reasons for opti- gasoline was steadily dropping, despite
mism. our always increasing rate of consump-
The  main  reason   is  Mexico.   They tion.
recently discovered  great  reserves  of The reason the prices remained so low
prove to be com- was the abundance of oil being produced
parable to Saudi Arabia. When crude
oil is discovered it is usually accom¬
panied by natural gas, and the Mexicans
have been losing millions of dollars on
wasted natural gas because they don't
have a pipeline through which to sell it
The United Sutes is the logical connec¬
tion for such a pipeline, and if we supply
the line, Mexico, with its large, relativ¬
ely poor population, would be happy to
go into maximum production and sell
us oil. President Carter's recent trip to
Mexico was to discuss prices, and he
apparently agreed to Mexico's demand
that they be paid the same amount that
OPEC charges. If we can replace the
20% of our oil from OPEC with Mexican
oil, the supply should be more stable and
the price of gas in this country should
level off in Leet's view.
Finally, there is the hope of China.
While the Chinese themselves don't
even know, they may have huge fields of
crude oil waiting to be tapped. Of
course, China has the largest population
of any nation on earth, and they could
really use the revenue from oil sales to
the United States According to Leet,
the potential of China as a source of
oil is what makes the recent trade agree¬
ments so important.
The bottom line appears to be this:
if the price of gas has been artificalry
increased it has not been directly
the fault of OPEC or the oil companies
More likely, price fluctuations can be
traced to various government actions
and inactions during the last 20 years.
With political stability in the Middle
East, continued domestic and Canadian
supplies, and new supplies from Mexico
and sold by foreign nations at very
low prices. This was not a good situation
for those major oil companies with
significant domestic supplies of oil,
because American-produced oil could
not possibly be sold for the »1 80 that
could buy a barrel of Saudi Arabian
crude. Labor and production costs in the
major domestic producing states (Cali¬
fornia, Texas, Oklahoma and Louisiana)
were just too high.
President Eisenhower was very sensi¬
tive to the complaints of the oil com¬
panies that they were losing profits
because of foreign competition, and in
1958 he set an oil import quote by exec¬
utive order. According to Leet, Eisen-
the American people that 'we should
pump our own oil firsf, but Eisenhower
did not make it dear why he felt it was
necessary to sidestep the Congress
through the use of an executive order
Whatever the politics were, the eco¬
nomic effect was clear The price of for¬
eign crude oil was hiked so that domestic
producers could be competitive, ml
company profits soared and the Ameri-
event in the Eisenhower administration
as indicative of the kind of 'cooperative
atmosphere' that exists between our
government  and  the  major  oil   com-
The late 1950's were also a time when
the oil companies were at their peak of
politkan power in foreign nations
The so-called '7 sisters* controlled all
of the oil in the Middle East. These
"sisters" were Exxon, Culf, Texaco.
Shell, British Petroleum, Mobil and
Stardard Oil of California, and they
totally controlled the markets, distribu¬
tion and production of oil in that region
The nations themselves received a roy¬
alty for each barrel produced, and other
than that were not involved in any way.
In I960, four Middle Eastern nations,
Iran, Iraq, Kuwait and Saudi Arabia,
joined with the South American nation of
Venezuela in founding the Organization
of Petroleum Exporting Countries This
group, which became known as OPEC,
was dedicated to giving the nations more
control over their own oil.
OPEC was not exactly an instant
success According to Leet, in the
1960s OPEC was a weak, laughable
organization*. They senf
policy statements and «
but the giant, powerful c
completely ignored them.
The reason that the oil c
could afford to adopt such a
attitude towards OPEC was that the
United States not only produced enough
oil for itself, but actually maintained a
surplus throughout the 1960's. In fact,
in 1967, when the Middle Eastern supply
of oil was totally cut off during the Six-
Day War between Israel and Egypt, the
United States not only took care of their
own needs but supplied all of Europe
from the surplus as well I
While their power remained suspect,
OPEC's membership grew through
the late 1960s Today, in addition to the
five founders, the organization includes
Algeria, Ecuador, Indonesia, Libya,
Nigeria, the tiny Middle Eastern nations
of Oman and United Arab Emirates, and
the tiny African state of Gabon
A turning point in OPEC' s history was
when Libya joined Already in the
Qadhafi regime, the Libyans influenced
OPEC to become more militant and to
use their control of oil for political advan¬
tage They got their chance in 1973
That was the year of the second
Isreal-Egypt war, and when it was over,
a splinter group of the organization,
OAPEC (Organization of Arab Petro¬
leum Exporting Countries) decided to
embargo oil to the United States as pun¬
ishment for having supported Israel in
See Page 6
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