Crude Oil Imports and National Security
Robert M. Ames
Yale Graduates Energy Study Group
Lafarge Corp.; Yale Graduates Energy Study Group
University of Houston - Department of Economics; Yale Graduates Energy Study Group; Hillhouse Resources, LLC
Paul W. MacAvoy
Yale School of Management (deceased); Yale Graduates Energy Study Group
February 8, 2010
The authors demonstrate that the United States profits handsomely in all circumstances by imposing an embargo on imports of foreign crude oil. The US removes its exposure to foreign oil supply shocks and recovers deadweight lost producers surplus. The embargo plan will lead to greater domestic production of crude oil and alternative fuels without the tax and subsidy schemes heretofore employed.
Number of Pages in PDF File: 26
Keywords: crude oil, import policy, OPEC, oil supply shock, price spike, embargo, imported crude, oligopoly
JEL Classification: Q4, Q40, Q41, Q42, Q43, Q48
Date posted: February 9, 2010
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