Economic model: new oil and gas supplies in the lower 48 states
This study represents an initial effort to examine the critical policy-making area. Primary emphasis is directed at showing how both policy variables (e.g., oil and gas prices and tax provisions) and finding rates will affect reserve additions, production rates, and economic supplies. The results show, for example, a range of reserve additions for natural gas varying from nearly zero under unfavorable taxes, prices, and finding rates to around 750 trillion cubic feet under favorable taxes, prices, and finding rates. This large range of reserve additions overwhelms the much smaller range of reserve additions (261 to 406 trillion cubic feet) estimated by the U.S.G.S., where taxes and prices are not varied. The fundamental result of the study is that supply clearly depends on government policy. Sound inputs and imaginative policies are the keystones for the nation to make a smooth transition from oil and gas to alternative energy sources, yet at the same time achieve a balance between economic growth, environmental quality, and energy independence. Further work is needed to determine how responsive supplies of oil and gas from offshore and Alaska will be to price, tax provisions, and leasing schedules. The authors construct an economic model that shows how a profit-conscious oil and gas industry in the lower 48 states will explore for new reserves, develop reserve additions, and produce crude oil and natural gas for a wide range of economic conditions and policy considerations. (MCW)
- OSTI ID:
- 6410269
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
02 PETROLEUM
03 NATURAL GAS
ENERGY SUPPLIES
ECONOMIC ANALYSIS
NATURAL GAS
GOVERNMENT POLICIES
SUPPLY AND DEMAND
PETROLEUM
USA
DECISION MAKING
ENERGY POLICY
FORECASTING
MATHEMATICAL MODELS
PRODUCTION
RECOVERY
RESERVES
RESOURCE DEPLETION
TAXES
ECONOMICS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
NORTH AMERICA
RESOURCES
294000* - Energy Planning & Policy- Fossil Fuels
292000 - Energy Planning & Policy- Supply
Demand & Forecasting
021000 - Petroleum- Legislation & Regulations
031000 - Natural Gas- Legislation & Regulations