"Before discussing basic research needs in UCG , we need to address a still more fundamental question. Does the nation need a synfuel industry? The technical community in the energy field seems to agree almost universally that the nation does need such an industry. The prevailing opinion is that the United States is currently living in a ""fool's paradise."" Oil prices have dropped recently by as much a5 25% which is small compared to the 12 to 15 fold increase in cost since 1973 . A world wide recession has produced a small surplus in the oil export market, but that recession resulted in part from the rapid rise in the cost of energy. Economic recovery will quickly dry up the oil surplus. In the meantime, three separate , simultaneous wars in the Middle- East underline the precarious political balance in that area which produces about 50% of the exported oil. In essence, current conditions have given us only little extra time to complete the mammoth undertaking of developing available syn fuels industry. A second question: Even if synfuels are needed, does the nation need an UCG industry? UCG probably offers economic and some environmental advantages. UCG may be the only viable method for recovering coal energy from thick deep lying coal seams. But, for the near future, one advantage probably overrides all others. In times of national emergency, UCG can be developed more rapidly than any other synfuel industry. This fact may be important should the "" fool's paradise"" end too swiftly."