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Political economy of crude oil price controls

Journal Article · · Nat. Resour. J.; (United States)
OSTI ID:6469346

Direct crude oil and refined-product price controls, allocations, and entitlements have long complicated regulation of the U.S. petroleum industry. The basic price control system existed prior to the 1973 oil embargo and, while controls in the rest of the economy were being phased out, the embargo resulted in an elaboration and continuation of controls on oil. The effect of U.S. crude oil price controls has been to monopsonize U.S. crude oil producers, increase U.S. dependence on imports, subsidize domestic consumption, and perhaps monopsonize some refiners with non-U.S. capacity targeted to the U.S. market. A phase-out of crude oil price controls would simplify the regulatory environment, increase domestic supplies, and reduce imports. The political question is whether, and in what fashion, the phase-out provided for in the 1975 Energy Policy and Conservation Act will be allowed to occur. 41 references and footnotes.

OSTI ID:
6469346
Journal Information:
Nat. Resour. J.; (United States), Journal Name: Nat. Resour. J.; (United States) Vol. 18:4; ISSN NRJOA
Country of Publication:
United States
Language:
English