james scesinger, the nation's first secretary of energy. attempted to control the price of oilr tural gas based upon the assumion at a5%ate of returwas the ceiling because there areso many ilures, dry holes, we would discover that it would not have been the entrepreneurial activity in the industry atasecessa maintain any acvity. e control of price in highly risky industry will destroy that industry. we were doing damage to the industry during the period of control. world oil prices kept rising. although prices for our known oil reserves wereestricte by nixon's conols, the americanil iustry d one incentive-- new oil. oil found af1972was ee follow the higher world price american producers heard the knock of opportunity. one newcomer, sam lefrak a new york city landlord declared war on o.p.e.c. because they drove the price up so high it now became economically viable for us to go deeper a drill right here for oil and gas. in 1972, at least 40-60% of america's known reserves remainedrapped in rock pores and ssures expensive, enhanced oil-recove