Political economy of the US oil industry

Thesis/Dissertation · Sun Jan 01 04:00:00 EST 1989

OSTI ID:6908273

Isser, S N

The political struggles over oil policy in the 1950s were contests between narrow economic interest groups to collect economic rents, as would be expected if government is considered to be just another forum for rent seeking behavior, with government intervention accepted as a norm. Conversely, the attempt to obtain decontrol of natural gas production during this period, during which consumer interests and pro-market ideology were important factors, presaged the oil politics of the 1970s. The significant impact of consumer interests on oil policy contradicts the expectations of public choice theorists that consumers will be disadvantaged in contests with well organized and wealthy interest groups. The ability of latent interest groups to influence policy when represented by politicians and private actors acting as political entrepreneurs was demonstrated during the 1970s as they dominated oil politics. Substantial economic rents, generated by the OPEC price increases, were transferred to consumers and refiners, while tax break were eliminated despite the economic resources available to producers. The pattern of distribution of those economic rents, as well as various tax breaks and exemptions from controls, was skewed toward small producers and refiners, reflecting a traditional ideological prejudice against big business. Econometric analysis revealed that ideology, party and oil production by constituents were the most important influences on congressional voting.

• Research Organization: Texas Univ., Austin, TX (USA)
• OSTI ID: 6908273
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
ECONOMIC POLICY
ENERGY POLICY
GOVERNMENT POLICIES
HISTORICAL ASPECTS
INDUSTRY
INSTITUTIONAL FACTORS
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
POLITICAL ASPECTS
SOCIO-ECONOMIC FACTORS