Research Catalog

Title

Adjusting to volatile energy prices / Philip K. Verleger, Jr.

Author

Verleger, Philip K.

Publication

Washington, DC : Institute for International Economics, [1994], ©1994.

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Holdings

Details

Description

xv, 262 pages : illustrations; 23 cm.

Summary

• Oil price volatility has been highly criticized on many fronts, from the top-level official to the average consumer. Authorities from both producing and consuming nations have called for mechanisms to restore order to a chaotic market.
• The author traces the development of petroleum commodity markets, then examines the quest by producers and consumers for stability in world oil markets. He finds that modest producer and consumer gains can be realized through negotiations that achieve removal of barriers to trade, elimination of hurdles to foreign investment, and strengthening of financial institutions.
• Verleger reviews previous attempts to stabilize price fluctuations of other commodities and finds that these efforts have invariably failed. He argues that the very size of the oil market makes it unlikely that an effort to stabilize oil prices would succeed. Moreover, he shows that an oil price stabilization agreement would impose large costs on consumers.

Series Statement

Policy analyses in international economics ; 39

Uniform Title

Policy analyses in international economics ; 39.

Subject

• Petroleum products > Prices
• Petroleum industry and trade
• Trades

Bibliography (note)

• Includes bibliographical references (p. 247-251) and index.

Contents

• 1. Why a Dialogue. Early Efforts at Energy Cooperation. The Goals of Economic Policy. The Views of the Protagonists. The Economic Importance of Oil. The Petroleum "Problem" Is There an Oil Price Problem? A Better Justification for a Dialogue -- 2. Petroleum Markets: Function, Nature, and Performance. The Function of Petroleum Markets. Types of Petroleum Commodity Markets. Measuring the Performance of Petroleum Markets -- 3. The Objectives of the Participants. Price Stability and Market Regulation. Reducing the Uncertainty of Demand Projections. The Issue of Investment. Reform of Contracts. Security of Supply and Strategic Stocks. Distribution of the Rents. Environmental Questions. Downstream Integration. The Role of New Financial Instruments -- 4. Price Stabilization Schemes: Bad and Probably Impractical. The Theoretical Background. Is There an Externality? The Value of Buffer Stocks. Experience from Actual Stabilization Schemes. Proposals to Stabilize Oil Prices. Implications of Surplus Capacity.
• Costs of a Pure Buffer Stock Agreement -- 5. The Market Alternative to Price Stabilization. Application of Alternative Instruments. Applying New Instruments to an Old Problem. Impediments to Hedging -- 6. Framing a Dialogue. Barriers to Foreign Direct Investment. Removal of Barriers to Trade. Maintaining Open Markets. Strategic Stockpiles. Petroleum Taxation in Consuming Countries. The Environmental Dimension. An Agenda for Negotiations -- 7. Conclusions. Trade and Investment Negotiations: Not an Agreement to Fix Prices. The Key Elements of an Agreement. Economic Benefits of an ETI Agreement -- Appendix A Potential Gains to Oil-Producing Countries from Hedging 1991 Sales of Oil During the Fourth Quarter of 1990.

ISBN

0881320692 (pbk.)

LCCN

92037849

OCLC

ocm26974939

Owning Institutions

Columbia University Libraries