ABSTRACT
The Organization of Petroleum Exporting Companies (OPEC) cartel, by limiting its overall production during 1986 and the greater part of 1987, caused world oil prices to rise from the $10 low in 1985 to around $20 a barrel in fall 1987. The president's "battlefield" strategies for energy security included a request for this nation's most massive peacetime commitment of funds and resources to develop its own alternative sources of fuel. Regulations could be drawn that would fine-tune the operation, including provisions for a drawback on exports of crude oil derivatives, historical imports of unfinished oils, finished products, and residual fuel oil used as fuel. The Iranian revolution of 1978 led to further price increases, which OPEC sought to sustain. The report said that Congress no doubt would likely exempt crude oil-import fees from some friendly countries and perhaps exempt users of particular products.
