Some consequences of crude oil decontrol
An assessment of the impact of President Carter's phased decontrol policy on oil production and consumption and President Reagan's decision to accelerate decontrol finds that: (1) oil imports would have been 664,000 barrels per day higher without phased decontrol; (2) the impact increases over time because of long-run elasticities of supply and demand; (3) there was no long-run effect on inflation; (4) consumers are better off on the whole; (5) OPEC's pricing power is lower; (6) the reduction in imports lowered oil consumer costs $6 billion per year; (7) decontrol eliminated the administrative costs of price control; (8) drilling activity increased; and (9) gasoline prices declined. These results suggest that there would be similarly socially beneficial effects from natural gas deregulation. 2 figures, 4 tables.
- OSTI ID:
- 6208284
- Resource Relation:
- Related Information: Research Study No. 024
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
ECONOMIC POLICY
ECONOMIC IMPACT
PETROLEUM
PRICING REGULATIONS
DEREGULATION
FUEL CONSUMPTION
INFLATION
OPEC
PRODUCTION
ENERGY CONSUMPTION
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
REGULATIONS
020700* - Petroleum- Economics
Industrial
& Business Aspects
021000 - Petroleum- Legislation & Regulations