Tuesday, April 12, 1983AThe Battalion/Page 7
/
Crisis seen if
oil prices fall
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,
Running around
staff photo by Eric Evan Lee
acie Tips, a Texas A&M diver,
ns around Kyle Field Monday
Ifternoon to stay in condition. Tips
is a psychology sophomore from
Arlington.
United Press International
WASHINGTON — A re
spected energy analysis group
warns that a world oil price col
lapse would create wrenching
adjustments and uncertainty
that could set the stage for a fu
ture oil crisis.
In a study released Sunday,
the Boston-based Cambridge
Energy Research Associates
found that while the drop in
OPEC prices to the current $29
per barrel will result in many
economic benefits, a sharp de
cline to $20 or lower would pro
duce an energy shock in reverse.
“The full significance of a
drop to $20 a barrel is not recog
nized,” the report stated. “If oil
prices were to fall to $20 a barrel
it would be an energy shock in
reverse. Much of the successful
adjustment to an unstable world
oil market would be under
mined.
“Nor would the story end
here, for a collapse in oil prices
now would initiate a further cy
cle in world oil markets, leading
to another sharp rise in prices in
the future,” it added.
The research group, headed
by Dr. Daniel Yergin of Harvard
University, is a consulting firm
specializing in energy market
analysis.
The report was authored by
Dr. Robert Dohner, an econom
ist with the Fletcher School of
Law and Diplomacy at Tufts
University. He has written ex
tensively on the impact of oil
shocks on the U.S. economy.
Yergin, a leading energy ex
pert, said the study shows that a
petroleum price drop to $20 a
barrel could have disastrous
consequences and set the stage
for a future oil shock.
“Those who eagerly await the
deep drop have an optimistic
view of the resiliency of econo
mic institutions and human
emotions when billions of dol
lars of investment are suddenly
thrown into question,” Yergin
Freeze vote
goes to House
said.
The price of imported oil in
the United States hit a peak of
$39 per barrel in 1981. By the
third quarter of 1982, as theroil
glut deepened because of the
worldwide recession and in-
United Press International
WASHINGTON — Signs in
dicate that the White House is
creasing conservation, it was
down to $33.14.
Faced with widespread
undercutting of official rates,
OPEC eventually settled on $29
per barrel as its benchmark
price.
The study warned that oil im
porting nations may be tempted
to push the price down further
because OPEC’s current corn-
preparing to wage a new,
tougher assault on the nuclear
freeze issue when it comes up
for a vote in the House this
week.
The House, which spent 13
hours debating the resolution
March 16 before putting it off, is
scheduled to renew considera
tion of the issue Wednesday.
In an apparent effort to keep
attention focused on the freeze
resolution, the White House
said Saturday that President
Reagan has decided to delay en
dorsing any new plan for the in
tercontinental MX missile for
several days.
The concern is that more talk
about the new nuclear weapon
could fan interest in a freeze.
Administration critics
claimed last week that recent
leaks by an interagency panel
accusing the Soviets of violating
SALT II are part of an effort to
undercut the freeze resolution.
’Before last month’s debate,
the White House had privately
written off the freeze resolution
as a sure bet for passage, in part
due to Democratic gains in the
November elections, and did lit
tle lobbying against it, expecting
to concentrate on the Republi
can-controlled Senate where
prospects for passage are dim.
f iromise price is “in many ways a
ragile one, and incentives to
cheat are strong.”
Dohner advised that indust
rialized nations would be foolish
to move aggressively against
OPEC, because stable or gra
dually declining oil prices are
most favorable to growth, and
will keep the West far better pre
pared for a new oil crisis caused
by political upheaval in the vola
tile Middle East.
415 University
o oooooooooooooooooooooooooooo
846-5816
CFINE JEWELRY
INTRODUCES THE:
ADD-A-BEAD CLUB
“The cost in terms of unem
ployment and lost output of ad
justing to the two oil shocks of
the 1970s has been terrible, and
we should go to great lengths to
avoid repeating the experi
ence,” the study concluded.
Now until May 15
you can become a member v/ith $39 merchandise purchase
and $10 membership fee. Club members can buy ADD-A-
BEADS and string beads for
Vt. PRICE until Nov. 15, 1983
Come in now before you take off for the summer!
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itions»
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Dillard s
H:
irlirf
:1s oft*
Come in together and discover Dillard's BRIDE
I.D.E.A.S., the bridal registry system that makes every
wedding present the perfect gift.
With our Interstore Directory for Electronically Assisted
Shopping, your family and friends need only drop in or
phone us to find out about the gifts you prefer. WeTl even
wrap their selections free of charge.
This computerized system makes your list of preferences
available in all of our stores and is constantly updated as
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Together, the two of you can express your tastes in table
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There is no special charge for our
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NORITAKE
MIKASA
LENOX
WEDGEWOOD
FRANCISCAN
DENBY
NIKKO
JOHNSON BROS.
ROYAL DOULTON
c
Thursday, April 14th
Throughout the day, visit exhibits for information on a florist, caterer,
rental place, travel agent, and wedding apparel.
7:00 p.m. Bridal Fashion Show followed by prize drawing! Wedding attire
provided by the Bridal Boutique and Dillard's.
8:00 p.m. Reception in China Department.
twin* 1
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!
Fish Richards Catering Service
Bridal Boutique
International Travel Service
Aggieland Flowers and Gifts
U-Rent-M
Nan's Blossom Shop
Keyboard Center
Organist: Diana Steelman
taM
^Dillard’s
rerun
Post Oak Mall, College Station
in* »