Enhanced-recovery surge seen via price decontrol

Journal Article · Sat Feb 01 04:00:00 EST 1975 · Oil Gas J.; (United States)

OSTI ID:5060633

Decontrolling crude prices for U.S. enhanced-recovery projects would bring a sizable boost in production and increase ultimate recovery at small cost to consumers. These are the main points in a study made by the Interstate Oil Compact Commission for the Federal Energy Administration. Such a move would extend exempt prices of $8 to $12/bbl to an estimated 2.3 million bpd of enhanced-recovery crude currently selling at a price-controlled maximum of $5.25/bbl. This volume amounts to 63% of total U.S. enhanced production of 3.8 million bpd. IOCC says that allowing all enhanced-recovery crude to command free-market prices would (1) trigger the start of 4,076 new enhanced projects in 1975 through 1980--as against only 2,248 new ones expected with the present 2-tier system of crude pricing; (2) result in increased production of about 350,000 bpd over that expected with 2-tier pricing; and (3) increase ultimate recovery by 8.5 billion bbl instead of 5.4 billion with 2-tier pricing. Estimated cost increase to consumers would be about 2 cents/gal of petroleum products.

• OSTI ID: 5060633
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 73:8; ISSN OIGJA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
COST
DEREGULATION
ECONOMIC IMPACT
ENERGY SOURCES
ENHANCED RECOVERY
FOSSIL FUELS
FUELS
INDUSTRY
NATIONAL ORGANIZATIONS
PETROLEUM
PETROLEUM INDUSTRY
PRICES
PRODUCTION
RECOVERY
US FEA
US ORGANIZATIONS