Oil: prices and capital

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:7217050

Ben-Shahar, H

The book deals with three areas: (1) energy prices and price policy; (2) economic growth and foreign capital accumulation of the main oil-producing countries; and (3) investment policy for foreign capital. Part 1, chapters 1--7, deals with the oil industry background, the methodology, world supplies incorporated into a dynamic programming model, and the price policy of OPEC. Part 2, chapters 8--10, deals with the economic development of the main oil-producing countries within OPEC and the relationship between their oil revenues and economic development. It presents an optimization framework for explaining the allocation of oil revenues for domestic uses (consumption and investments) and foreign investments using a simple economic growth model. Oil revenues are treated as a separate factor of the economic resources. Funds are allocated to domestic and foreign investments in a manner that maximizes their total contribution to the gross national product. Part 3 (Chapters 11 and 12), deals with investment policies for the foreign capital accumulated by the OPEC members. The discussion, again, is conceptual and analytic, applying a model for optimal allocation of capital to various available western investment outlets. The model is based on the preferential criteria of investors and the contribution of each available investment tool to each criterion. The optimal allocation is that which maximizes the level of achievement of the investors' preferences. A specific exercise clarifies the model mechanism (Chapter 12). (MCW)

• OSTI ID: 7217050
• 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
ALLOCATIONS
CAPITAL
CHARGES
CONSUMPTION RATES
ECONOMIC DEVELOPMENT
ECONOMIC IMPACT
ECONOMIC POLICY
ECONOMICS
ENERGY MODELS
ENERGY SOURCES
ENERGY SUPPLIES
FORECASTING
FOSSIL FUELS
FUELS
INDUSTRY
INTERNATIONAL ORGANIZATIONS
INVESTMENT
OPEC
OPTIMIZATION
PETROLEUM
PETROLEUM INDUSTRY
SIMULATION