PowerPoint PresentationSlide 2Slide 3Slide 4Slide 5Slide 6Slide 7Slide 8Slide 9Slide 10Slide 11Slide 12Slide 13Slide 14Slide 15Slide 16Slide 17Slide 18Slide 19Slide 20Slide 21Slide 22Slide 23Slide 24Slide 25Slide 26Slide 27Slide 28Slide 29Slide 30Slide 31Slide 32Slide 33Slide 34Slide 35Slide 36Slide 37Slide 38Slide 39Slide 40Slide 41Slide 42Slide 43Energy Policy PA 395US HistoryGary Flomenhofthttp://www.uvm.edu/~gflomenh/ENRG-POL-PA395/Stagliano Chapter OneP282 “Few words so innocently incorporate into their basic meaning as much simplifying illusion as does the word policy.” -Cordell Moore“In theory, the making of national policy seeks to redress social ills, remedy economic inefficiencies, provide prudent access to natural resources, and generally transform a multiplicity of special interests into some common good. Policy, however, is made by men and women whose deliberations are driven by political passion and human frailty. Policymaking embraces the maker’s relative skill in the exercise of power, personal standing in the hierarchy of authority and the need to temper the highly desirable with the politically feasible.” -Vito A. StaglianoRoosevelt-Rise of energy bureaucracyNatl. Resources Board 1934-Natl. resources planning BoardNew Deal:TVA-1933 Tenn Valley Authority-“hotbed of communism”BPA-Bonneville Power AdminCACVP-Ca Central Valley Project1935-Federal Power Act (FPC)1938-Natl Gas ActRooseveltOil Policy controlled by Oil companiesInterstate Oil Compact CommissionConnolly Hot Oil Act of 1935-production quotasWWII-possible oil shortageIckes authorized to buy and sell foreign oilInterior Dept. authorized to control domestic prices of oil products, ration supplies, and allocate production to defense and civilian useOil=strategic asset therefore govt. has a duty to be engaged.Truman1946 Atomic Energy commission-civilian not military Agency. Tool in the cold war demonstrating superiorityOf US system.Anti-trust vs Oil companiesSynthetic fuels first fundedAnglo-Iranian Oil Co.- Iran wage disputeGot anti-trust immunity to deal with it.Interior Dept. created foreign Petroleum supply committeeFTC investigation, Justice Dept. Civil damagesTrumanFirst Energy sector analysis: Harold Barnett, InteriorEnergy Uses and Supplies 1948“Most fuels were finite in quantity, could not be Increased in production or substituted for each other without substantial lead time, were developed only with very large investments, and were frequently produced in non-competitive industries.”Over-dependence on foreign oil. Should substituteLiquid fuels derived from coal.TrumanLiquid Synthetic Fuels Act of 1944: $225,000 by Interior Dept. of Mines1951: Interior Sec Krug-$455M loan guarantees for synfuelsExpired 1952-costs too high-”5 years away frombeing cost competitive”EisenhowerPaley commission chartered by Truman:“Meticulous analysis, complex modeling, brilliant graphicPresentations”Agnostic on policy recommendationsCheap foreign oil-10% of imports: affect on domesticExtraction. Troubling %!Mideast oil owned, produced, transported, refined, retailedBy 7 sisters: Std. Oil NJ, Texaco, guld, Std Oil CA, Mobil, BPRoyal Dutch ShellEisenhowerJune 1951, Mossadegh regime (IRAN) begins to nationalizeIranian oil. Anglo-Iranian Oil co. lock out of oil techniciansBy Iranian troops=6% shut down of world oil7 sisters tried to deny technology to run industry. “tooPrimitive”Consortium of western producers including those under Indictment made deal to get oil flowing.Eisenhower1955 voluntary program to reduce oil imports1959 mandatory oil import quotas to 12%=distortion?Under Trade agreement extension Act of 1955Predicted effect raise consumer prices-accelerate depletion of US reserves-, and Created trade barriers-Gatt problem(Randall), chairman councilOn foreign economic policyNational security justification-backfired?EisenhowerVenezuela immediately formed OPECAccelerated nationalization fo oil producers1959 “given the nationalistic climate which today prevailsIn Venezuela, it is doubtful that the line can be held at anyPoint short of total govt. control if not expropriation.”-staff reportProtectionism has international diplomatic consequencesBut domestic economic consequences.Nixon later lifted import quotas, but imposed price controlsCongress prone to slow deliberations on energyEisenhower1953-Atoms for Peace-Cold War propaganda1954-Atomic Energy Act-AEC ---> NRC1954-Phillips vs. Wisconsin= natural gas regulation inter-state, not intra-state. 35 year effectControls of price, production, source had bad effect for 20 yearsKennedy& JohnsonOPEC established in 1960: Venezuela, Saudi Arabia, Kuwait,Iraq. Total of 13 membersAEC-Seaborg vs. Interior Dept. nuclear vs. fossil fuels1963 Interdepartmental study group Ali Bulent Campbell ofNorthwestern U.-major support for nuclear & concluded Conventional energy was ample.--->buried by agenciesFuel prices declining since 1953.Kennedy& Johnson1960 RFF-Joseph Fisher: Resource Policy for Great SocietyFindings:1) What % oil imports that would endanger natl security?2) What provision for disruption?3) Risk of OPEC?AEC wanted Breeder reactors-exaggerated expectationsKilled by Carter (nuclear engineer), revived by Reagan1967 Arab Israeli War (borders)Nixon1973 removed import quotas, imposed price controlsCreated:Counselor to President for Nat resourcesAsst. Secretary of Interior for energy&materialsFed Office Energy conservationsEnergy/Science office in OMBOil policy committee in TreasuryAppointed John Love-governor of CO, directWhite House energy policy officeProposed ERDA-$10B energy R&DNixonSept. 8, 1973 start of war (Ieft Aug 20, 1973)Oct. 1973 Arab-Israeli War #2Oct. 20-US resupply of Israeli weaponryOAPEC:embargoed US, Canada, NetherlandsClosed Suez canalReduced extraction ratePrice increase $3-$11 barrell“Project Independence”-spirit of Apollo-No imports by end Of Decade!NixonRegulation of natural gas lead to more oil use.1933 Texas Railroad Commission limit US production.1960’s States had complete control to ration, regulate, price caps on oilConnolly Hot Oil Act, put this in federal law.1973 buying and selling of oil carried out through diplomaticArrangements among govt. officials. No oil market.Nixon/May 1974 FEA-successor to White House FECJuly 2, 1974 Nixon’s last address on energy:Become self-sufficient (autarky vs. competitive advantage)FordProject Independence blueprint Nov 1974.Treasury Secretary William Simon=“energy
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