Benefits and costs of crude-oil price regulations
The average price of domestic crude is considerably lower than that of imported crude under the present system of price regulations. Average refiner-acquisition costs for domestic and imported crude reflect this differential. Individual refiner's average acquisition costs are not equal, because some refiners are able to purchase a larger proportion of their crude from lower-priced domestic sources than others. The Entitlements Program is designed to reduce these differences among refiners. As long as domestic regulations keep the price of domestic crude below world levels, a program like the Entitlements Program will be necessary to ensure the competitive viability of refiners regardless of access to domestic crude. Domestic-crude price regulations, coupled with the Entitlements Program, reduce crude acquisition costs faced by refiners. This article provides a taxonomy of the benefits and costs created by the crude price regulations and the Entitlements Program. The first section of the paper provides a brief overview of present crude price regulations and the Entitlements Program. The second portion offers a taxonomy of the benefits and costs of the present regulatory scheme. In addition, these benefits and costs are compared to the benefits and costs of an alternative regulatory scheme that could provide the same level of benefits at lower costs. The third section contains estimates of these benefits and costs.
- Research Organization:
- National Planning Association, Washington, DC
- OSTI ID:
- 6689931
- Journal Information:
- J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 3:2; ISSN JENDD
- Country of Publication:
- United States
- Language:
- English
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CHARGES
COMPARATIVE EVALUATIONS
COMPETITION
COST BENEFIT ANALYSIS
DOCUMENT TYPES
ECONOMIC ELASTICITY
ECONOMICS
ENERGY POLICY
ENERGY SOURCES
ENTITLEMENTS PROGRAM
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
GOVERNMENT POLICIES
IMPORTS
INDUSTRY
PETROLEUM
PETROLEUM INDUSTRY
PETROLEUM REFINERIES
REGULATIONS
REVIEWS