Divestiture and the Economics of Energy Supplies
Paul Davidson
Chapter 28 in Inflation, Open Economies and Resources, 1991, pp 422-443 from Palgrave Macmillan
Abstract:
Abstract In 1973, the onset of the so-called ‘energy-crisis’ — a crisis primarily involving petroleum supplies — caught many knowledgeable observers by surprise. As late as 1970, for example, a prestigious Cabinet task force had reported that a 1980 US demand of 18.6 million barrels per day (MMb/d) could be easily supplied. The task force noted that ‘without import controls, the domestic wellhead price would fall from $3.30 per barrel to about $2.00, which would correspond to the world price. Although we cannot exclude the possibility, we do not predict a substantial price rise in world markets over the coming decade’.1 At this $2.00 price ($3 in 1976 dollars), the Cabinet Task Force predicted that approximately half of total US demand, or 9.5 MMb/d, could profitably be produced from domestic wells, while if the 1980 price was $3.30 ($4.95 in 1976 dollars) US producers could profitably produce 13.5 MMb/d in 1980.2
Keywords: User Cost; Energy Crisis; Monopoly Power; Energy Company; Coal Price (search for similar items in EconPapers)
Date: 1991
References: Add references at CitEc
Citations:
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-11516-7_28
Ordering information: This item can be ordered from
http://www.palgrave.com/9781349115167
DOI: 10.1007/978-1-349-11516-7_28
Access Statistics for this chapter
More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().