The Impact of the Oil Crisis
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The Impact of the Oil Crisis book
Petroleum dominates the energy consumption pattern in the OECD area. In 1972, it accounted for more than 55 per cent of overall energy use, while the nuclear share was no more than 1 per cent. This chapter is devoted to clarifying the interrelationships between the oil market events and uranium prices. Substitution in the energy field is a slow and drawn-out process, in part because of the long gestation periods of investment planning and execution. When competitive conditions prevail, economic theory postulates that as the price of a product is raised, consumers will gradually shift their demand to substitutes. The extent of substitution following a relative price change would also vary with time. The low relative cost levels of nuclear electricity were seen in the early 1970s to result in a very substantial substitution in the long run of nuclear for coal- and oil-fired power stations.