	study predicts u s dependence on foreign oil a government study has concluded the u s will be dependent on oil from the middle east into the next century and must take steps to reduce its vulnerability the new york times said the newspaper said the inter agency government study found a serious oil dependency problem due to steadily falling domestic production and rising demand for imported oil the study concluded that by the u s will be relying on foreign countries for pct of its oil more than the peak of pct reached in and far above the pct rate during the arab oil embargo the u s now imports about pct of its oil needs up from pct a year ago the new york times said it said recommendations sent to the white house by energy secretary john harrington include financial incentives to raise domestic oil production by one mln barrels a day from the current mln barrels the newspaper said the administration has placed increased emphasis on stockpiling oil reserves it said the view now held is that the strategic petroleum reserve to be tapped in times of shortages should be increased by barrels a day rather than as called for in the budget the newspaper said harrington may propose restoring the depletion allowance to major producers the administration also plans to renew its efforts to repeal the windfall profits tax remove bars to drilling on the outer continental shelf and repeal the law that limits the use of natural gas in industrial and utility boilers it added the new york times quoted senator don nickles of oklahoma as saying the study greatly underestimated potential u s demand for imported oil in the next decade and overestimated the amount of domestic oil which would be produced reuter 
