U. S. energy policy: it's primarily based on politics

Journal Article · Wed Jun 01 04:00:00 EDT 1977 · World Oil; (United States)

OSTI ID:7099561

Merklein, H A

Dr. Merklein points out that U.S. energy policy is made almost exclusively in the Congress, and so it will be this time again. Thus, President Carter's proposal was felt to be just that--a proposal to be submitted to Congress, where it would undergo the usual congressional mutilation possibly beyond recognition. Since prices were too low in the past to keep already-insufficient reserve additions from declining, they are essentially guaranteed to remain too low in the future. Moreover, the policy proposal envisions an extension, rather than the much-needed reduction, of regulatory powers of the government in the energy sector. As a result, implementation of the policy as proposed will create a rigid, unresponsive and overly bureaucratic energy sector, the exact opposite of what is needed and of what this sector used to be. Dr. Merklein feels that, left alone, the energy sector is quite capable of dealing with long-term problems and instant crises. Oil companies foresaw the impending energy shortage long before the government was able or willing to accept it, and they broadened the U.S. energy base by developing other sources, notably coal and nuclear energy. Now, of course, the pressure is on to keep the oil companies out of other energy fields. Dr. Merklein says there is one single feature that makes this policy proposal noteworthy: it is the first that envisions a U.S. oil price equal to world price. He and many others have long expressed the opinion that U.S. price should follow such a course, and at long last a President has recognized the soundness of such a move. The new policy will stand or fall on the pricing issue. All other factors--conservation, information systems, nonfossil energy sources, research, etc. are of secondary importance. This article concentrates on pricing aspects of the program. (MCW)

• Research Organization: Univ. of Dallas, Irving, TX
• OSTI ID: 7099561
• Journal Information: World Oil; (United States), Journal Name: World Oil; (United States) Vol. 184:7; ISSN WOOIA
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000* -- Energy Planning & Policy-- Policy
Legislation
& Regulation
CARBONACEOUS MATERIALS
COAL
ECONOMIC POLICY
ECONOMICS
ENERGY POLICY
ENERGY SOURCES
FAILURES
FINANCIAL INCENTIVES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
IMPLEMENTATION
INDUSTRY
LEGISLATION
MARKET
NORTH AMERICA
NUCLEAR POWER
PETROLEUM INDUSTRY
POWER
PRODUCTION
PROJECT INDEPENDENCE
RESERVES
RESOURCES
TAXES
USA