Capital resources for energy through the year 1990
This study by the Bankers Trust Company (BTC) examined the probable capital needs of the energy industries through 1990 and related them to the anticipated capital market to see whether the concern over a capital shortage is justified. Three separate cases of energy supply were examined, assuming: (1) there will be no constraints on imports; (2) domestic energy independence by 1990; and (3) energy independence by 1985. It was found, surprisingly, that the capital market will possibly prove adequate to meet the financing needs of the energy industries through 1990--with the strong caveats of: (a) no constraints on imports (above), and (b) not too much interference by governments. But even with restrictive programs where petroleum and natural gas imports are assumed to be eliminated by 1990 or 1985, BTC concludes that the capital market could still meet the expanded industries' needs. The problems remaining in these cases would relate to the physical or technical difficulties of satisfying energy demand and not the associated capital needed. The financial requirements of solving the energy problem by 1985 might cause market difficulties for other industries. The large additional supplies of energy necessary to sustain the growing U.S. economy will require increased efforts to explore for oil and gas, mine coal, develop nuclear power, and build a synthetic fuel industry. As the Nation's less costly sources of energy become exhausted, capital requirements will soar. (MCW)
- OSTI ID:
- 7188545
- Country of Publication:
- United States
- Language:
- English
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