GOVERNMENT PRICE POLICIES AND THE AVAILABILITY OF CRUDE OIL

This study examines the effects of price incentives on the availability of petroleum. Expected sustained higher crude oil prices to domestic producers constitute an incentive to increase both exploratory drilling and secondary and tertiary recovery of oil as well as production out of reserves. Reserve-production ratios tend to fall under high prices. Equalization of the domestic price to the real world price would make the U.S. self sufficient within a six year period. Constant prices result in no new additions to reserves after a five year period and very low production levels. Imports reach sixty-five percent of domestic consumption.


Issue Date:
1978-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32406
Published in:
Western Journal of Agricultural Economics, Volume 03, Number 1
Page range:
59-74
Total Pages:
16




 Record created 2017-04-01, last modified 2017-08-24

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