Reducing US vulnerability to world oil-supply disruptions

Journal Article · Sat May 01 04:00:00 EDT 1982 · Econ. Rev.; (United States)

OSTI ID:5090386

Brown, S P.A.

A free-market approach to reduce the economic costs of importing oil can lower the production losses and high prices following a supply disruption by encouraging the private sector to prepare stockpiles, arrange long-term purchase contracts with domestic producers, and invest in conservation. The benefits will outweigh a short-term price increase caused by deregulation. Interventionist policies that include tariffs, use taxes, or subsidies could cause negative responses from consumers and other international markets, while tax credits distort costs and regulations have compliance costs. None of these approaches has the efficiency of the free market for reducing consumption and increasing domestic production. Policy, however, tends to reflect a political distaste for higher production profits. 9 references, 5 figures, 4 tables. (DCK)

• Research Organization: Federal Reserve Bank, Dallas, TX
• OSTI ID: 5090386
• Journal Information: Econ. Rev.; (United States), Journal Name: Econ. Rev.; (United States); ISSN ECRVD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ECONOMIC IMPACT
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
PETROLEUM
POLITICAL ASPECTS
SUPPLY DISRUPTION
VULNERABILITY