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Government Price Policies And The Availability Of Crude Oil

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  • Pagoulatos, Angelos
  • Debertin, David L.
  • Pagoulatos, Emilio

Abstract

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.

Suggested Citation

  • Pagoulatos, Angelos & Debertin, David L. & Pagoulatos, Emilio, 1978. "Government Price Policies And The Availability Of Crude Oil," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 3(1), pages 1-16, July.
    • Handle: RePEc:ags:wjagec:32406
    DOI: 10.22004/ag.econ.32406
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    References listed on IDEAS

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    1. Robert M. Solow, 1974. "The Economics of Resources or the Resources of Economics," Palgrave Macmillan Books, in: Chennat Gopalakrishnan (ed.), Classic Papers in Natural Resource Economics, chapter 12, pages 257-276, Palgrave Macmillan.
    2. Pagoulatos, Angelos & Pagoulatos, Emilio & Debertin, David L., 1977. "The Discovery and Extraction of Crude Oil in the US: An Econometric Model," Staff Papers 158500, University of Kentucky, Department of Agricultural Economics.
    3. Carter, H.O. & Youde, J.G., 1974. "Some Impacts Of The Changing Energy Situation On U.S. Agriculture," 1974 Annual Meeting, August 18-21, College Station, Texas 284571, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    4. William D. Nordhaus, 1973. "The Allocation of Energy Resources," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(3), pages 529-576.
    5. Harold Hotelling, 1931. "The Economics of Exhaustible Resources," Journal of Political Economy, University of Chicago Press, vol. 39(2), pages 137-137.
    6. Richard M. Adams & Gordon A. King & Warren E. Johnston, 1977. "Effects of Energy Cost Increases and Regional Allocation Policies on Agricultural Production," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(3), pages 444-455.
    7. J. Daniel Khazzoom, 1971. "The FPC Staff's Econometric Model of Natural Gas Supply in the United States," Bell Journal of Economics, The RAND Corporation, vol. 2(1), pages 51-93, Spring.
    8. Norman K. Whittlesey & Walter R. Butcher, 1974. "Energy Research Opportunities for Agricultural Economists," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 56(5), pages 896-903.
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    Cited by:

    1. Debertin, David L. & Pagoulatos, Angelos, 1980. "Energy Problems And Alternatives: Implications For The South," Southern Journal of Agricultural Economics, Southern Agricultural Economics Association, vol. 12(1), pages 1-10, July.
    2. Lopez Elena & Lopez Rigoberto A., 2017. "Introduction to the Special Issue in Honor of Professor Emilio Pagoulatos," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 15(2), pages 1-5, December.
    3. Gould, Brian W., 1987. "The Impacts Of The Market Pricing Of Canadian Energy Resources On The Alberta Oil Industry," Western Journal of Agricultural Economics, Western Agricultural Economics Association, vol. 12(1), pages 1-13, July.

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