Divestiture and R and D in the U. S. oil industry
Conference
·
· Prepr., Div. Pet. Chem., Am. Chem. Soc.; (United States)
OSTI ID:7301007
An analysis is presented which shows that there is little if any merit in a policy which would result in the dissolution of the large integrated oil companies. Indeed, the available evidence suggests just the contrary: divestiture would have a detrimental effect on the industry's innovative capability. In particular, projects that involve the commitment of funds over an extended time period, projects that involve relatively large expenditures, and projects that involve high risks can be expected to be avoided. In addition, many opportunities for successful technology transfer would not be realized. Also, the productivity of the R and D establishment within the industry would decline, not only because the minimum economic scale threshold would in some cases be breached, but also because the coupling of R and D to the ultimate area of application would most likely be frustrated even further. In short, the industries' ability to maintain a record of impressive technological innovation would be impaired. Accordingly, offsetting benefits from divestiture would have to be assured before this loss in innovative capacity could be viewed without concern.
- Research Organization:
- Stanford Univ., CA
- OSTI ID:
- 7301007
- Conference Information:
- Journal Name: Prepr., Div. Pet. Chem., Am. Chem. Soc.; (United States) Journal Volume: 22:1
- Country of Publication:
- United States
- Language:
- English
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