Financial analysis of vertical divestiture. Final report

Technical Report · Sun Apr 03 04:00:00 EST 1977

DOI:https://doi.org/10.2172/6243572· OSTI ID:6243572

The 94th Congress considered several legislative initiatives to require vertical divestiture of the major domestic petroleum companies. The legislation would have required functional separation of these companies into separate entities, each engaged only in exploration and production, transportation, or processing and marketing. This report analyzes financial and supply implications of such legislation. Specifically, the two major issues addressed are: (1) an assessment of the financial strength of functionally divested companies; and (2) the likely impact on energy supplies and on petroleum industry investment, brought about by changes in the financial position of the divested entities. This paper presents four major analyses: (1) historical financial trends of the major companies; (2) short term capital formation and expenditure prospects following divestiture; (3) long term impact on domestic oil and gas supplies; and (4) long term impact on production investment. In addition, an Appendix considers briefly some special implications of divestiture for the Transportation sector.

• Research Organization: Shriver (R.) Associates, Washington, DC (USA)
• OSTI ID: 6243572
• Report Number(s): DOE/TIC-10597
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000* -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
CAPITAL
DATA
ECONOMIC IMPACT
ENERGY SOURCES
ENERGY SUPPLIES
FINANCING
FLUIDS
FORECASTING
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
INDUSTRY
INFORMATION
INVESTMENT
NATURAL GAS
PETROLEUM
PETROLEUM INDUSTRY
PRODUCTION
TRANSPORT
VERTICAL DIVESTITURE