Final report to the President on oil supply shortages during 1979

Technical Report · Tue Jul 01 00:00:00 EDT 1980

DOI:https://doi.org/10.2172/5359171· OSTI ID:5359171

Stockpile levels at the beginning of 1979, imports during the first half of the year, and inventory management were primarily responsible for the oil supply shortage in the spring and summer of 1979. There was a 3.1% reduction in oil supply in May to July of 1979 relative to the same period in 1978, and a 0.2% reduction relative to 1977. The reduction in available oil between 1979 and previous years was even greater than the reduction in supply. Domestic production of crude oil declined between May to July of 1978 and the same period in 1979. This was consistent with the long-term trend. Free-world oil production dropped by about 2 million b/d during the first quarter of 1979 as a result of the loss of Iranian production. Production returned to pre-disruption levels by the middle of 1979. The US share of free-world oil supply dropped by 2% in the second quarter of 1979 compared to the 1977-78 average. Gasoline supplied to consumers during May to July 1979 was 8.5% less than in the same period in 1978, and 7 to 9% less than the amount that would have been consumed if there had been no supply restriction. Compared to 1978, reduced gasoline production during this period in 1979 accounted for 36% of the supply reduction, and reduced use of stocks accounted for 64% of the supply reduction. Refiners could have made more gasoline available during May to July of 1979 without reducing stocks below minimum operating levels. The yield of gasoline relative to other petroleum products went down in May to July of 1979 as compared to the same period in 1977 and 1978. Most of the increase was in production of petrochemical feedstocks. Refiners who were bound by DOE price controls or who were complying with CWPS guidelines could not have increased allowable revenues by delaying the sale of gasoline. Virtually all of the gasoline price increases that took place between January and August 1979 were based on cost increases.

• Research Organization: US Department of Energy (USDOE), Washington DC (United States)
• OSTI ID: 5359171
• Report Number(s): DOE/S-0011
• Country of Publication: United States
• Language: English

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02 PETROLEUM
29 ENERGY PLANNING
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GASOLINE
ENERGY SHORTAGES
RETAIL PRICES
PETROLEUM
PETROLEUM INDUSTRY
SUPPLY AND DEMAND
CHEMICAL FEEDSTOCKS
ENERGY ACCOUNTING
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY SUPPLIES
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