Increased supplies and the lowered demand have moved the international oil markets into the current surplus condition. In the United States, the higher prices for petroleum products during 1979 to 80 have spawned a new consumer ethic. US oil consumption has dropped dramatically as motorists, homeowners, and industries are using less energy and finding ways to use it more eficiently. Smaller, more fuel-efficient furnaces and conversion to other fuels have all decreased petroleum demand. Total crude oil consumption has dropped by 13 percent. In the 18-month period ending in September, 1981, industries cut back petroleum use from 38% to 21%. In addition, the consumption of coal, our most abundant energy source, has increased slightly during the past year. Higher prices also have given a direct stimulus to drilling and exploration activities. In 1980, a 24-year-old record was broken when more than 60,000 wells were drilled. The 1981 pace averaged about 27 percent ahead of 1980's record. By conserving, converting, and maintaining its production, the United States has managed to cut its imports of oil from over 8 million barrels a day in 1979 to an average of about 5 million barrels a day in 1981-a reduction of more than 30 percent. That difference would have cost Americans more than $35 billion a year or close to $500 for every household.