ABSTRACT
The petroleum industry today accounts for nearly 85 percent of nation's basic energy production. Oil accounts for about 50 percent of the industry's output, and natural gas accounts for about 35 percent. Major petroleum companies control many of largest coal reserves. The major petroleum industry antitrust case brought by the Justice Department occurred during the 1930s and withered away after more than 20 years without any significant remedies. Firms which make energy using equipment or which are major energy consumers are particularly likely to have several oil men on their boards. The principal conclusion which emerges from these underlying facts is that elementary concentration ratio comparisons with other industries or even elaborate econometric models based on the usual competitive market assumptions are not likely to result in optimal public policy decisions. The oil industry's representatives are again urging their congressional colleagues to opt for "market value" instead of "cost," this time as the legitimate basis for pricing natural gas.
