Comparison of FEA and CRS estimates of energy cost increases due to oil price decontrol

Technical Report · Tue Aug 19 04:00:00 EDT 1975

OSTI ID:6837622

FEA analysis of the removal of oil price controls is compared with that of the Congressional Research Service (CRS). CRS estimates that decontrol will increase oil and natural gas liquids (NGL) costs by $19.2 billion and increase total energy costs by $26.7 billion in 1976. FEA estimates that total costs will increase by $5.3 billion. A major reason for the differences in CRS and FEA estimates is that CRS assumes the supplemental fees on imported oil will remain in effect whereas FEA assumes they will be removed. The remainder of the difference is accounted for by differences in the amount of old oil expected to be produced in 1976 and differences in the expected sensitivity of coal and natural gas prices to the price of oil. The President announced that he will remove the supplemental fees when decontrol occurs. These and other differences in assumptions are discussed. CRS did not realize that 1976, being a leap-year, has 366 days. FEA's cost estimates assume 365 days in 1976 in order to make its estimates comparable with those of CRS.

• Research Organization: Federal Energy Administration, Washington, D.C. (USA)
• OSTI ID: 6837622
• Report Number(s): F-75-006
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
CHARGES
COMPARATIVE EVALUATIONS
COST
ENERGY
ENERGY SOURCES
FORECASTING
FOSSIL FUELS
FUELS
NATIONAL ORGANIZATIONS
NATURAL GAS LIQUIDS
PETROLEUM
US FEA
US ORGANIZATIONS