Ford throws weight against divestiture

Journal Article · Mon Jun 07 04:00:00 EDT 1976 · Oil Gas J.; (United States)

OSTI ID:7339859

Administration opposition to the bill (S. 2387) that would break up the 18 largest oil companies was voiced to the Senate Judiciary Committee by Frank Zarb, FEA; Roderick M. Hills, Securities and Exchange Commission; Deputy Asst. Sec. of State Julius L. Katz; Asst. Sec. of Commerce Richard G. Darman; and Deputy Asst. Sec. of Defense Roger Shields. Asst. Sec. of the Treasury Gerald Parsky said in a speech prior to the committee's voting on the bill June 15 that ''divestiture will increase our reliance on imported oil and that OPEC influence over the international energy market will likely increase.'' In its preliminary findings on the effects of divestiture, the Treasury Department foresees several major problems: its implementation, legal and administrative struggles, financial difficulties both during and after divestiture, potential international disruptions, and possible government intervention in the industry. Findings show that: new investments would be curtailed by the divested companies; investment in new large energy projects would suffer due to the requirement of large amounts of money over long periods of time; investment in partially completed facilities likely would be completed, though; and a cutback in the level of capital investment by divested firms could create profitable investment opportunities for other unaffected petroleum companies that might increase their level of new investment to some extent. (MCW)

• OSTI ID: 7339859
• Journal Information: Oil Gas J.; (United States), Journal Name: Oil Gas J.; (United States) Vol. 74:23; ISSN OIGJA
• Country of Publication: United States
• Language: English

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02 PETROLEUM
020700 -- Petroleum-- Economics
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29 ENERGY PLANNING, POLICY, AND ECONOMY
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