Our consistent position in these fora regardless of where prices are at the moment has been that we do not believe cartels should be coordinating production levels among producers to set prices. It is for that reason that the United States does not maintain a dialogue with OPEC as an institution, but bilaterally with key OPEC and non-OPEC producers. We believe markets should determine prices by reacting to the full range of individual decisions made by a virtually infinite number of consumers and producers in the global energy market. OPEC producers as well as some non-OPEC producers do not share our view that oil producers should not coordinate production levels to set prices. However, major oil producers recognize their strong interest in maintaining long term demand for oil and in ensuring that oil continues to be the fuel of choice for much of the world.
Oil producers recognize the importance of maintaining their reputations as reliable suppliers.
Obviously, any problems with heating oil supply or prices that would encourage consumers to switch to non-oil alternatives would not be a welcome development for anybody in the oil business. Mr. Chairman, assuring access to imported oil for the U.S. and our major allies and trading partners is and will remain a continuing critical objective for U.S. foreign and economic policy for the foreseeable future. At the same time, we need to view current market conditions in historical perspective. As a result of all these factors, oil prices, when adjusted for inflation, remain well below the real price levels of 1974 to 1985. Despite almost three decades since U.S. consumers suffered having to wait in long gas lines, the memory of that acute vulnerability still casts a long shadow over the oil market.