Some consequences of crude oil decontrol

Book · Thu Jan 01 04:00:00 EST 1981

OSTI ID:6208284

Norman, D A

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
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
DEREGULATION
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY CONSUMPTION
ENERGY SOURCES
FOSSIL FUELS
FUEL CONSUMPTION
FUELS
GOVERNMENT POLICIES
INFLATION
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
PRICING REGULATIONS
PRODUCTION
REGULATIONS