Dealing with oil shortages
Policy debates over government intervention when oil supplies are interrupted are now concerned with what should trigger a standby allocation mechanism, not with whether it is needed. The free-market approach taken by National Petroleum Council (NPC) committee members would grant only minor government intervention in even a severe situation. The committee suggests that refiners adopt a crude-oil-sharing program, backed up with simple state-allocation guidelines and profit limits. NPC considered three levels of crisis ranging from a cut in imports of one, two, and in excess of three million barrels per day. Market forces reinforced with public-information programs would handle the first case. Limited government participation would be introduced as the situation worsens, but no price controls would be imposed. Some reserves could be drawn from the Strategic Petroleum Reserve in an extreme situation. Trade groups in the industry are protesting the concept of rationing by price. (DCK)
- OSTI ID:
- 6543095
- Journal Information:
- Energy Dly.; (United States), Vol. 9:50
- Country of Publication:
- United States
- Language:
- English
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