Horizontal divestiture of energy companies
Discussions in the past have centered around both vertical (company ownership of production, refining, transportation, marketing) and horizontal (company ownership of oil, coal, uranium, shale, and other energy sources) integration. Many think that integration of either type is undesirable and propose instead, divestiture - breaking up the energy companies in component parts. Vertical divestiture would break up an oil company into producing, refining, and marketing components. Horizontal divestiture would break up an oil company into producing, refining, and marketing components. Horizontal divestiture would require oil companies to divest themselves of business operations in non-petroleum energy energies. Measures of competition, impacts of divestiture, an alternative to divestiture, energy company growth, and macroconcentration are discussed. It is concluded that no evidence exists to support charges of substantial uncompetitive behavior (beyond that introduced by the Federal government) in the energy industry. Further, it is possible, through a rational leasing policy and a coordinated merger policy, for the Federal government to insure a continued competitive energy industry without impairing the supplying of energy to the nation. The authors propose that if the Congress is determined to take some policy action, then a well-planned leasing policy coupled with a merger policy within an overall U.S. energy plan or framework - a critical item that the nation imperatively needs but is still lacking - is superior to that of legislated divestiture. (MCW)
- OSTI ID:
- 6300121
- Report Number(s):
- NP-23735
- Resource Relation:
- Related Information: Working Paper 77-35
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
HORIZONTAL DIVESTITURE
ECONOMIC IMPACT
RECOMMENDATIONS
INDUSTRY
PETROLEUM INDUSTRY
COMPETITION
ENERGY
ENERGY POLICY
ENERGY SOURCES
INVESTMENT
LEASING
LEGISLATION
OWNERSHIP
PROFITS
RISK ASSESSMENT
TABLES
DATA FORMS
GOVERNMENT POLICIES
293000* - Energy Planning & Policy- Policy
Legislation
& Regulation
290200 - Energy Planning & Policy- Economics & Sociology
294000 - Energy Planning & Policy- Fossil Fuels