Abstract
This thesis examines the development of UK oil policy since 1964. The methodology of neo-classical economic theory is applied to the government policy process and various distortions and inconsistencies in the process are found. The economic theories of politics and of bureaucracies highlight the intrinsic deficiencies of the oil policy process and provide the analytical framework in which a positive assessment of government oil policy is undertaken. Tactical behaviour and strategic bargaining on the basis of the characteristics of oil policy are methods by which groups and individuals attempt to influence the development of policy. It is possible to predict the direction and degree of influence various groups have on the oil policy process over time and to estimate the economic consequences of government action in the North Sea. The thesis emphasises the inevitability of distorting pressures on the government policy process in the system of democratic government in the UK. Recommendations of ways to reduce the distorting impact of government policies in the domestic oil sector include providing greater access to information than already exists and promoting competition between government bureaucracies for the provision of goods and services provided by government.