The Energy Question Volume One: The World : An International Failure of Policy

Considering all sources of energy and the major world markets, these papers from energy economists in the United States, Canada, and Britain all indicate that the 1973 energy 'crisis' was and is a short-run problem caused by government action or inaction. Past policies are analysed, and future policies recommended.

The so-called energy crisis that burst upon the world in 1973 was not easily understood by many people. It was neither 'the beginning of the end' nor the first encounter by modern man with the natural result of his prodigality. These papers, collected in two volumes, from energy economists in the United States, Canada, and Britain all indicate that the 'crisis' was and is a short-run problem caused by government action or inaction. The problem may be complex, but it was mishandled, particularly by the United States, in terms of government policy.

The rise in the price of, and the embargo on, oil came into being because of a successful producers' cartel outside North America; oil buyers -- nations and companies -- did not respond in kind but scurried around the world in separate planes in order to ensure supplies for themselves at any price. That price became many times the cost-of-production price, despite the fact that cool analysis reveals an increase in both production and reserves in most areas of the world. The shortage of refined oil products for consumers are attributable partly to the embargo, but also to a shortage of refineries and bottlenecks in transportation -- some of which have been induced by government uncertainties over recent years. Proper government policies are now required.

The thirty-six papers in the two books treat a multitude of topics related to the question of energy as seen from the stance of the economist. All sources of energy are considered, as are the markets in major areas of the world; past policies are analysed, and future policies recommended.It is hoped that the volumes, giving the background to the energy problems of the immediate future and a menu of prescriptions for their solution, will interest businessmen, market analysts, and policy-makers as well as economists, teaching or learning, in many parts of the world.

Contents 5 Introduction 7 The world oil market 27 Part One: The Actors 69 Oil in the Middle East and North Africa 69 Political and financial aspects of the oil game 99 The Soviet Union in world energy markets 111 China and Japan in the world energy economy 127 Petroleum and natural gas in sub-Saharan Africa 147 The Latin American petroleum industry 173 Western Europe's energy policies 207 Multinational corporations and national economic policy 221 Multinational corporations in world politics 237 Part Two: Energy and the Environment 251 Energy consumption and environmental quality 251 Mankind as a factor in climate change 267 The Faustian bargain 285 The devil's advocates 293 Part Three: Policy 303 Energy, resources, and growth 303 Oil diplomacy 327 Oil and the US balance of payments 337 Part Four: Energy System Modeling 363 A world energy model 363 The limits of The Limits to Growth 377 Contributors 403 Contents of volume 2 404