Relationship Between Supply/Demand and Pricing for Alternate Fuels in Texas: A Study in Elasticities. Project S/D-4,Final Report.

摘要

A study was made of how profit-maximizing producers of oil and gas increase production in response to higher oil and gas prices,how cost-conscious users of oil and gas decrease use in response to higher oil and gas prices,and how these producer and user responses will affect the market-clearing prices of oil and gas in Texas and in the Nation. Responses of producers to price were developed to show the effects of higher oil and gas prices on the exploration and development of new reserves and the production of oil and gas from known and newly developed reserves. Responses of users to price were developed to show the effects of higher oil and gas prices on the use of important petroleum products and their derivatives in both industrial production and final consumption. The market-clearing prices represent the minimum oil and gas prices needed to guarantee U.S. self-sufficiency in oil and gas in 1985. The Houston NSF (RANN) models were used to estimate the industrial demands for crude oil and natural gas. These models show how cost-conscious managers will modify their methods of production;their use of fuel,water,and feedstock inputs;and their discharges of wastes to the air,water,and land in response to higher fuel prices,limited availabilities of clean fuels,and restrictive waste discharge standards. Results of the modeling study are summarized. It is concluded that U.S. self-sufficiency is achievable by 1985at prices similar to those being paid today if decisions are made now to insure a normal return on investments in oil and gas production and if all profits above normal profits from these prices are invested in exploration and development and in research. 35references. (ERA citation 01:018623)