Effects of decontrol

Technical Report · Mon Aug 18 04:00:00 EDT 1975

OSTI ID:7358903

Five background papers contained in this report summarize the effects of decontrol of old oil on the economy, domestic production, and imports, as well as the effect of price on demand and the impacts without new action. The economic recovery will continue strongly even with decontrol. Decontrol will help stem the decline in domestic production by providing incentives for tertiary recovery and by reducing the adverse effect inflation has on the $5.25 ceiling price. Depending upon the world price of oil, decontrol could increase production by 1.1 to 2.8 million barrels per day (MMB/D) in 1985 and 0.1 to 0.3 MMB/D in 1977. Compared with taking no actions, the President's actions on decontrol and import fees will reduce imports by about 150,000 barrels per day by the end of 1975 and almost 700,000 barrels per day in 1977. Analysis of energy consumption trends as well as econometric analysis firmly indicates that higher energy prices encourage conservation. (GRA)

• Research Organization: Federal Energy Administration, Washington, D.C. (USA); Federal Energy Administration, Office of Policy and Analysis, Office of Economic Impact; Federal Energy Administration, Office of Policy and Analysis, Office of Quantitative Methods, Washington, DC 20461
• OSTI ID: 7358903
• Report Number(s): FEA/B-76/050
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
CHARGES
CONTROL
DEMAND FACTORS
ECONOMICS
ENERGY CONSERVATION
ENERGY CONSUMPTION
ENERGY DEMAND
GOVERNMENT POLICIES
INDUSTRY
PETROLEUM INDUSTRY
PRODUCTION
TRADE