The decontrol of US oil production

Us domestic oil reserves and production levels have been declining, but the quantity of oil available on world markets for export to the USA is also likely to decrease in the future - as a result of declining world reserves and increased conservation by the oil exporting nations. President Carter's decontrol plan is therefore aimed at stimulating oil production within the USA as well as less wasteful petroleum use. This article assesses the effectiveness of the decontrol plan in the light of recent trends in US and world oil production and reserves. It concludes that the Carter plan could need substantial revision since its effect may be to reduce current US production in favour of higher prices after decontrol.