Oil price decontrol debate: incentives for exploration and development

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

OSTI ID:6164614

Rivlin, A

The President's proposal for a windfall profits tax is not viewed by economists as a disincentive to financing new oil exploration and production because investment funds will be attracted by the higher world oil prices. The view that an additional cash flow is needed is inconsistent because that money would probably not be used to subsidize unprofitable oil production. Studies have shown little relationship between internal cash flow levels and this type of investment while a higher tax to finance other enterprises would not cause a significant reduction in exploration.

• Research Organization: Congressional Budget Office, Washington, DC
• OSTI ID: 6164614
• 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
ENERGY POLICY
EXPLORATION
FINANCIAL INCENTIVES
GOVERNMENT POLICIES
INDUSTRY
INVESTMENT
NORTH AMERICA
PETROLEUM INDUSTRY
PRICES
PRODUCTION
TAXES
USA