Evaluation of Federal Actions in Response to the Iranian Oil Situation

In early March 1979, the United States entered into a commitment with the International Energy Agency (IEA) to lower petroleum consumption by up to 5 percent. This commitment would lessen the Nation's need for imports and thus help stabilize the world oil market, reduce upward pressures on oil prices, and rebuild petroleum stocks drawn during the cutoff. To achieve the IEA commitment, the Iranian Response Plan proposes to reduce the needs for imports by both decreasing U.S. petroleum consumption and increasing domestic production. The Response Plan's objectives of reducing the need for imports and raising stock levels may be, to some extent, incompatible.