THE GASOLINE SHORTFALL: SHARED CULPABILITY

The gasoline shortage of 1979 can be attributed to a number of factors. In 1977, in anticipation of a 1978 OPEC price increase, oil companies built up their crude stocks to higher levels. By January 1978, gasoline stocks were up 7.8 percent above levels in 1977. The oil companies then began to reduce inventories and run their refineriers at rates below 1976 and 1977 levels. In spite of making hints at decontrolling gasoline prices, the Federal Governement did not. Refiners were probably waiting for higher prices and did not therefore increase their capacity. Furthermore, the government banned the use in gasoline of MMT, an octane boosting lead substitute, forcing refiners to use more crude oil per gallon of gasoline. This all backfired when a mild autumn spurred larger use of gasoline, a cold winter increased heating oil, and, by the end of December, Iranian exports ceased. To prevent future shortages, a number of steps can be taken to decrease demand. The improvements in automobile fuel efficiency mandated by the Federal Government (27.5 mpg by 1985) could conceivably cut total gasoline consumption by 15 percent. Higher prices and curtailment of pleasure driving could reduce demand another 10 percent, depending on how elastic the demand is. Increased use of mass transit could reduce gasoline use by 7 percent, and energy alternatives such as electric vehicles and gasohol could account for another 7 percent, for a total reduction of 39 percent.

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• Publication Date: 1979

Media Info

• Features: Tables;
• Pagination: p. 4-6
• Serial:
  • Energy
  • Volume: 4
  • Issue Number: 3
  • Publisher: Elsevier
  • ISSN: 0360-5442
  • Serial URL: http://www.sciencedirect.com/science/journal/03605442

Subject/Index Terms

• TRT Terms: Alternatives analysis; Automobile travel; Chemical reduction; Demand; Energy conservation; Energy resources; Equipment; Federal government; Fuel consumption; Fuels; Gasohol; Gasoline; Petroleum; Petroleum industry; Petroleum refining; Regulations; Supply
• Uncontrolled Terms: Energy crisis
• Geographic Terms: United States
• Old TRIS Terms: Fuel shortage; Reduction
• Subject Areas: Administration and Management; Energy; Environment; Geotechnology; Highways; Law; Public Transportation; Society; Vehicles and Equipment; I96: Vehicle Operating Costs;

Filing Info

• Accession Number: 00319320
• Record Type: Publication
• Report/Paper Numbers: Staff Rpt.
• Files: TRIS
• Created Date: Dec 30 1981 12:00AM