Oil, petrodollars, and the US economy. [Monograph]

Journal Article · Mon Jul 12 04:00:00 EDT 1982 · Am. Jew. Comm. Energy Inf. Serv.; (United States)

OSTI ID:7033048

Kenen, P B

OPEC prices historically follow rather than lead market activity, but the path of price changes has been uneven. This suggests that a closer look should be taken at the 1979 to 1980 response to oil surpluses to understand how the present low level of inventories increases vulnerability and how much of the price decline reflects substantial progress in conservation. A wedge between consumer prices and prices paid to OPEC is available in the form of an oil-import tax to maintain price levels and encourage further conservation. It is important to maintain a viable petroleum industry in the Persian Gulf, which can be helped with diversification into new oil fields and oil substitutes. A World War II-type rationing system could be revised to meet current driving needs in the event of another supply crisis, but the major effort should be to keep the Persian Gulf fields producing. Except for Kuwait, OPEC countries are not buying major US companies with their surplus dollars and form no serious threat unless they put pressure on the supplies of goods and services. (DCK)

• Research Organization: Princeton Univ., NJ
• OSTI ID: 7033048
• Journal Information: Am. Jew. Comm. Energy Inf. Serv.; (United States), Journal Name: Am. Jew. Comm. Energy Inf. Serv.; (United States) Vol. 4:3; ISSN ACESD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ECONOMIC IMPACT
ENERGY SOURCES
FOSSIL FUELS
FUELS
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
OPEC
PETROLEUM
PRICES
SUPPLY AND DEMAND
TARIFFS