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Zarb: scant hope for energy gains in Carter plan

Journal Article · · Energy User News; (United States)
OSTI ID:7213607

The Federal Energy Administration's former head, Frank Zarb, predicts that President Carter's energy plan will make things worse because of higher costs. Although short-run effects on industrial energy users will be offset by long-run increases in energy supplies, Zarb expects that only about half the proposals will be adopted by Congress. Congress will most likely approve programs for coal conversion and higher wellhead prices for new natural gas. Zarb would like even higher oil and gas prices to encourage exploration, abandonment of the regulatory system, and a return to a free market. He prefers former President Ford's energy plan to Carter's because of Carter's excise-tax system on producers, although he applauds the ten percent tax credit to encourage investments for energy conservation. Nuclear energy and coal are seen as the cheapest way to produce electricity, which makes Carter's decision against the breeder reactor a mistake. Zarb looks on the Organization of Petroleum Exporting Countries cartel as having the positive effect of pressuring the U.S. to produce oil. (DCK)

OSTI ID:
7213607
Journal Information:
Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:21; ISSN EUSND
Country of Publication:
United States
Language:
English