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U.S. Department of Energy
Office of Scientific and Technical Information

Federal Trade Commission tenth report to the Congress and the President

Technical Report ·
OSTI ID:5783278

This Tenth Report on the Voluntary Agreement has reviewed the major activities of the oil industry groups participating in IEA activities during the reporting period. The Report concludes that the safeguards built into the conduct of AST-3 minimized competitive risks. However, the report recommends that the extent of ISAG's planning role be clarified for future tests or during an emergency. In December 1980, the IEA adopted an inventory balancing plan to forstall price increases that could result from the oil supply disruption caused by the Iran/Iraq war. Oil companies were given clearance to provide the IEA with supply data and to engage in bilateral consultation with the Secretariat to assist the IEA to determine whether to activate its oil sharing system. However, Section 252 required that no antitrust immunity be given for any supply actions taken at the request of the IEA or the US Government to carry out the balancing plan. Although the companies submitted supply data, no bilateral consultation were conducted. In the past, industry consultation on the need to activate the sharing system has included the receipt and discussion of Secretariat forecasts based upon company-submitted supply data. The report notes the traditional antitrust concern regarding the dissemination and discussion of short term industry forecasts. In addition, the report reviews the results of our staff's inquiry into company use of IEA-forecast data. The inquiry found that while the forecasts had not been used for operational purposes, some companies circulated the forecasts widely and did not limit the use of the data to IEA- related purposes. The report recommends that access to forecast data be restricted to company personnel who need the information in connection with IEA activities and that the use of the data for non-IEA purposes be prohibited. The report also suggests that industry discussions of short-term market conditions be restricted.

Research Organization:
Federal Trade Commission, Washington, DC (USA)
OSTI ID:
5783278
Report Number(s):
NP-1903438; ON: DE81903438
Country of Publication:
United States
Language:
English