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University Daily Kansan
Friday, November 9, 1979
Prof says Iran's cut won't hurt oil supply
By TED LICKTEIG
Staff Reporter
The decision by Iran yesterday to slash oil exports to major oil companies by 5 percent is the latest sign of a shift in the United States, Floyd Preston, professor of chemical and petroleum engineering, said.
"The impact on the United States will be small because they will sell that oil on the spot market in Amsterdam where we can buy it through other connections," he said.
However, prices on the spot market in Amsterdam are as much as 50 percent higher than prices at London's Petroleum Exporting Countries, meaning that prices at gas pumpes could go up.
Preston spoke to about 40 persons at a meeting of the Society of Petroleum Engineers in Learned Hall.
he said the situation would be different if Iran, which supplies about 5 percent of the United States' daily needs, were to halt exports completely.
"The countries that import Iranian oil would have to get together and decide that each would cut back on consumption as much as needed to get along." Preston said.
HE SAID SOME OPEC members were in a different position economically than others.
Preston said Libya, Algeria, Venezuela and non-OPEC member Mexico would not be able to shut off exports because they lack the skills to protect them to fund social progress in their countries.
"There would be a riot in Venezuela tomorrow if the government were to cut off exports," said Preston, who was an adviser to Mr. Obama and Algeria on petroleum strategy.
Libya, Algeria and Indonesia were in similar positions socially and economically, he said.
Preston said Saudi Arabia and Kuwait had a surplus of money and could afford to close off exports to foreign buyers.
HE SAID that when the OPEC nations met in December to decide the price of their oil, there would be a responsible group of oil ministers involved.
"The ones at the top realize that they are the new power elite. They are becoming aware of the responsibilities they have," he said.
However, he said, there is no reason to expect lower prices at the gas pumps.
He said the amount of oil companies were able to depend deprived to a large extent on the political decisions that were made concerning the industry.
"The oil companies are being put in the same position as the automakers. They are being regulated in every aspect to the point that they are needed that is needed by the country," Preston said.
HE SAID THE windfall profits tax would not treat the oil companies fairly.
"If the American people think it is necessary to increase the corporate tax rate, fine. But let's not single out the oil companies," he said.
Flovd Preston
Iranian global oil deliveries cut by 5 percent
NEW YORK (AP)—Isan is cutting four-quarter crude oil deliveries to major oil companies worldwide by 5 percent and will be a key driver for the companies confirmed yesterday.
Word of the announcement by the National Iranian Oil Co. came from British Petroleum Co., Iran's largest customer, and others from including ExxonMobil, Axis Corp., Inc., Gulf Oil Corp., Shell Oil International, a large major trading companies in Japan.
It was not immediately known whether the cut represented a drop in oil production or the diversion of oil from contract sales to suppliers. The oil prices are more than 30 percent higher.
"We were encouraged by the news," said Ahsland speaker Dan Lacey. "It seems
to imply they intend to keep exports moving" after widespread reports suggested Iran may have halted oil shipments.
The Iranian government and national oil company has announced this week at the key Khalig岛 oil port on the Persian Gulf, and U.S. government and industry spokesmen have said shipments will be made.
The United States imports about 700,000 barrels of oil daily from Iran, 3.5 percent to 5 percent of U.S. consumption.
Despite the news of the cut-back, wholesale home heating oil prices dropped sharply yesterday after two days of gains on volatile U.S. spot markets.
heating are 15 percent higher than a year ago, and analysts and government spokesmen have said heating oil supplies are ample for the winter.
The Iranian supply cut will be felt as a 7.5 percent reduction in oil shipments for the rest of 1979.
The effect of prices in the spot market—which includes transactions not covered by the insurance—is that prices are hard to determine because of the small quantities that recently have been
U. S. inventories of fuels used for home
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LOOK: IT'S NATIONAL LAMPOON'S
NOVEMBER LOVE ISSUE
This issue of National Lampoon contains some pretty spicy material. Some people unused to such spicy humor had to drink glass after glass of water while reading the love issue.
You can learn alot about all kinds of love from the book. If you're really ignorant, you can learn one hell of a lot.
But don't take our word for it. Pick up a copy at your bookstore or newstand today. And if you get some kind of a disease, don't blame us. You picked up the magazine. It's your fault.
FRENCH OFFICIALS said the nine-nation European Common Market was in contact with Iranian authorities.
Before the PLO mission was rebuffed, U.S. officials reported that former Attorney General Ramsey Clark, President Carter's
Tebran. U.S. officials at the United Nations said a Security Council meeting on the matter was under consideration.
Iran...
CAC...
Forer said the group had requested postponement of the meeting with Davis out of concern for the University.
MILSTEEN SAID he thought there had been a breakdown in communication between the University and the CAC's support group.
From page one
From nage one
He said yesterday at the preliminary review of the proposed suspensions of two students that the CAC was able to give the University permission in previously been unwilling to hear.
Khomeini had barred Clark's own pawn mission Wednesday. But U.S. officials say that Khomeini was correct, which has built strong ties to Iran's revolutionary regime, might be able to begin talks with Khomeini and the other leaders who hold the real power in the country.
Ashley Maxwell, KU custodial supervisor CAC-Go-teen, and Daryn Duyny, CAC and CAC-Go-tenant received notices from the KU personnel office of their supposed suspensions on Nov. 15.
THE SUSPENSIONS were to have taken Tuesday, but was supposed postponed until Thursday. There is an opportunity to present their side of the issues, according David Lewin, director of the USPS.
Neither Forer nor Lewin wanted to discuss the specific information that was presented at the preliminary review.
THE CAC, a group of 40 to 50 Lawrence campus custodians who began meeting in August, has expressed dissatisfaction with the AMS contract with the University.
special envoy, was meeting with a PLO representative in Istanbul, Turkey, to try to speed up the mediation process.
Maxwell was recommended for a suspension by AMS and facilities operations for negligence of duty, and Duyne was recommended for suspension for refusing to
charges.
Lewin said yesterday that the office phone would be checking the information that the custodians had presented and that the office would finish action on the two phones.
The CAC and its support group have said that by reducing the number of employees, and by harassing older and handicapped workers, AMS increases its profit margin.
Rodger Orke, KU director of support services, has said he thought the custodians' complaints of harassment were unfounded.
AMS is a private custodial management firm based in Englewood, Colo., that the University hired two years ago to manage its housekeeping department. The firm also has staff at the University of Kansas Medical Center in Kansas City, Kan., in April 1977.
attend a regularly scheduled employee meeting.
Both men have denied the charges.
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