Facing OPEC: A Short Guide

Since the explosion in oil prices and the beginning of the downward drift of the industrial economies a year ago, there has been a proliferation of plans aimed at coming to grips with the energy crisis and the massive shift of wealth to the OPEC (Organization of the Petroleum Exporting Countries) nations' treasuries. Herewith a thumbnail guide by category to some of the major positions and proposals:

DEALING WITH PRODUCERS

The U.S. Approach would have the major oil consumers confront the producing countries as a bloc. Basically an adversary approach, it assumes that non-OPEC oil production will gradually increase, and OPEC members will eventually be forced to compete for a shrinking market by dropping their prices.

The French Approach is that major consumers, producers and developing countries should begin a trilateral dialogue aimed at working out ways of long-term mutual cooperation. Goal: a reconciliation of each side's competing needs for capital, help in industrialization and secure energy supplies.

The Martinique Compromise, reached by President Ford and French President Valery Giscard d'Estaing, put the U.S. and France essentially "in parallel," meaning that each will try to support the other's approach while not abandoning its own. The U.S. went along with French wishes for two OPEC-consumer meetings next year. Between them, though, there will be conferences among consumer countries only, a French concession to the U.S.

RECYCLING PETRODOLLARS

The Witteveen Plan, named for Johannes Witteveen, head of the International Monetary Fund, created an "oil facility" at the IMF that accepts deposits (currently $3.6 billion) from oil producers, and has lent some $1.9 billion of it to 32 nations at a bargain interest rate of 7%. It is the only formal recycling scheme so far in operation.

The Healey Plan, authored by Britain's Chancellor of the Exchequer Denis Healey, calls for a recycling bank that is similar to the IMF'S, but would pay interest at commercial rates to attract more OPEC deposits.

The Kissinger Plan proposes a $25 billion "safety net" lending agency that would be funded by consuming nations. Member countries strapped by high oil-import bills could borrow from the fund in emergencies, if they agree to energy-conservation steps.

The Van Lennep Plan is similar to the Kissinger safety net, except that loans would be guaranteed by the 24-nation Organization for Economic Cooperation and Development, of which Emile van Lennep is secretary-general.

The Common Market Plan stipulates that proceeds of a $3 billion bond issue subscribed to by OPEC nations would go to needy members of the EEC Nine.

The Wilson-Roosa Plan, authored in part by M.I.T. Professor Carroll Wilson and former Treasury Under Secretary Robert V. Roosa, would establish a giant "mutual fund" through which OPEC nations could make long-term investments with guarantees against losing holdings through nationalization.

CONSERVATION

Project Independence is the U.S. effort, still largely undefined, to achieve near total independence of OPEC by the 1980s through conservation and expansion of domestic energy production.

The Laird Plan, conceived by former Defense Secretary Melvin Laird, advocates a 50% cut in oil imports, World War 11-type gasoline rationing coupled with increased gas taxes, sharply reduced home heating (68DEG), a 30% cutback in auto use and a drive to build 300 nuclear power plants.

Common Market Cuts embody the goal of slashing reliance on imported fuel from 63% to 50% by 1985, slowing the growth of energy consumption, reviving the coal industry, raising production of natural gas and speeding development of nuclear energy.

PRICES

The Enders Plan, conceived by Thomas Enders, an Assistant Secretary of State, would prop domestic oil prices at high levels even after foreign prices recede. Purpose: to stem any rush back to cheap oil, continue pressure for development of alternate energy sources and shield against any future Arab oil embargo.

The Shah's Index is the Shah of Iran's proposal to link oil prices to those of 20 or 30 commodities--a system he believes would protect the buying power of Iran's oil income and encourage Western users to "check their inflation."

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