Assessing the impacts of oil industry divestiture on gasoline jobbers and fuel oil distributors and the customers they serve

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:7227092

An attempt has been made by Resource Planning Associates, Inc. to provide the National Oil Jobbers Council with information on the effect of divestiture on the gasoline jobbers, the fuel oil distributors, and the consumers they serve. The assumptions made are that: OPEC will remain intact, with common crude oil prices; no OPEC-originated crude oil embargo or other U.S. oil shortage will occur; no governmental controls will exist beyond the 40-month decontrol period currently legislated; domestic crude oil prices will rise to the level of landed imported oil prices after the 40-month decontrol period; and under divestiture, brand name ownership will be retained by the refiner. The investigators conclude that both proponents and opponents of divestiture have overstated their cases. Specifically, many of the trends proponents indicate would result from divestiture are in fact already occurring and will occur without divestiture (e.g., trends to more efficient retail outlets). The opponents' argument focuses on the expected lack of financial viability and efficiency of the various segments under divestiture. They further conclude that the current high number of competitors in the industry (including many viable independents in all sectors), the substantial size of the divested segments, and the strong management capability of the divested segments would minimize this impact. (MCW)

• OSTI ID: 7227092
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
ANTITRUST REVIEW
ECONOMIC IMPACT
ECONOMICS
FORECASTING
FUEL OILS
FUELS
GASOLINE
INDUSTRY
LEGAL ASPECTS
MARKET
OCCUPATIONS
OILS
OPERATION
ORGANIC COMPOUNDS
OTHER ORGANIC COMPOUNDS
PETROLEUM INDUSTRY
PETROLEUM PRODUCTS
PETROLEUM REFINERIES
PRODUCTION
REGULATIONS
TRANSPORT