Oil price decontrol debate: the case for decontrol

Journal Article · Sun Jul 01 04:00:00 EDT 1979 · Challenge; (United States)

OSTI ID:6109317

Adelman, M A

Decontrol of oil prices would eliminate the subsidies that encourage excessive consumption of imported fuel while discouraging exploration for new oil. Higher prices will put unprofitable and abandoned wells back into production, encourage enhanced oil recovery projects, and promote investment in new discovery. Although oil industry's claim that profits are needed for exploration is called fallacious, the proposed tax on excess profits is viewed as an excise, not an income, tax and a deterrent to investment. In place of the present complicated proposal for shifting profits to alternative energy and mass transit projects, the author suggests a simple decontrol of oil prices and a direct subsidy to low-income groups.

• Research Organization: Massachusetts Inst. of Technology, Cambridge
• OSTI ID: 6109317
• Journal Information: Challenge; (United States), Journal Name: Challenge; (United States) Vol. 22:3; ISSN CHLGB
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
DEREGULATION
ECONOMIC IMPACT
ENERGY POLICY
GOVERNMENT POLICIES
INDUSTRY
INVESTMENT
LOW INCOME GROUPS
NORTH AMERICA
PETROLEUM INDUSTRY
PRICES
PROFITS
USA