Any discussion of the various facets of petroleum policy in the
United States rests to a greater or less extent on the issue of
sensitivity of petroleum exploration, and hence of new petroleum
discoveries to economic incentives. Indeed, a principle argument in
favour of having a special petroleum policy at all is that domestic
petroleum exploration is so sensitive to economic considerations
that in the absence of special incentives exploration expenditures
would sharply decrease, as would the amount of petroleum
discovered; consequently, the nation's known oil resources would be
reduced to an extent dangerous in the event of an international
crisis. This study attempts to answer the question: how sensitive
are new petroleum discoveries to economic incentives? This book
will be of interest to students of environmental studies.
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