Vertical integration in the oil industry

Book · Thu Jan 01 04:00:00 EST 1976

OSTI ID:7340903

Mitchell, E J ^[1]

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1. ed.

Five studies relating to this currently controversial topic are presented. Wesley J. Liebeler provides a broad definition of vertical integration and considers current legal doctrine; Richard B. Mancke examines competition in the oil industry; Edward J. Mitchell focuses on capital cost savings from vertical integration in oil; David J. Teece applies a modern theory of integration to the details of the oil industry; and Arthur M. Johnson points out the moral of the 1911 Standard Oil divestiture. The purpose of this volume is to remove some of the mystery from the subject of vertical integration and to help the reader arrive at some informed conclusions on the consequences of divestiture. Vertical integration is still largely a mystery to economists. Recent research has served mainly to raise questions about earlier economic models and theories and about the policy conclusions of earlier economists and lawyers. Thus, this book is, in part, compensation for whatever misleading advice the predecessors may have offered. While the authors of this volume do not agree on every point, there appears to be a consensus on two points: (1) vertical divestiture would not make the oil industry more competitive; and (2) vertical divestiture would raise oil costs and prices. In short, breaking up the oil companies would have no economic benefit but a very real economic cost. (MCW)

• OSTI ID: 7340903
• 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
CAPITAL
COST
ECONOMICS
ENERGY POLICY
GOVERNMENT POLICIES
INDUSTRY
LEGAL ASPECTS
OPERATION
PETROLEUM INDUSTRY
REGULATIONS