Alternative Mechanisms for Drawing Down the Strategic Petroleum Reserve: Forward-Based Markets compared with Auction-Only Mechanisms

Technical Report · Thu Dec 01 04:00:00 EST 1983

DOI:https://doi.org/10.2172/5493589· OSTI ID:5493589

Kelman, Steven ^[1]; Innes, Richard ^[1]; Jaffe, Seth ^[1]; Hammond, Scott ^[1]

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1. Harvard Univ., Cambridge, MA (United States)

For the drawdown of the Strategic Petroleum Reserve (SPR) during a supply disruption, most of the attention has gone to proposals to auction off SPR oil during an emergency. Alternatives to supplement auctions through additional strategies that use forward-based markets are discussed. Strategies to be established prior to any crisis, in particular, a proposal for ongoing sales by DOE of options on SPR oil, are presented. Strategies intended for use during a crisis itself - in particular, proposals to sell futures on SPR oil or to conduct auctions for future delivery are proposed. Goals are twofold: to present these proposals and to outline how they would work, and to compare the proposals to reliance on an auctions-only strategy. In addition, the proposals are compared to each other.

• Research Organization: Harvard Univ., Cambridge, MA (United States)
• Sponsoring Organization: USDOE
• DOE Contract Number: AM01-79PE70106
• OSTI ID: 5493589
• Report Number(s): DOE/PE/70106-T8; DE84004723; ON: DE84004723
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
294002 -- Energy Planning & Policy-- Petroleum
DRAWDOWN
EMERGENCY PLANS
ENERGY SOURCES
ENERGY SUPPLIES
FOSSIL FUELS
FUELS
MANAGEMENT
MARKETING
PETROLEUM
PROGRAM MANAGEMENT
RESERVES
RESOURCES
STRATEGIC PETROLEUM RESERVE
SUPPLY DISRUPTION