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An analysis of the mandatory oil quota program shows that separate quotas were establish for crude oil and for petroleum products. Petroleum products were divided into light products (mostly gasoline, jet fuel, and distillate) and heavy or residual fuel oil products. The quota for crude oil imports was set at approximately ten percent of crude oil consumption. The passage implies which of the following about the oil quota program? A) Jet fuel was included in the crude oil quota. B) Approximately ninety percent of crude oil needs were to be met domestically. C) The quota for residual fuel oil products was the same as for crude oil products. D) The quota for residual fuel oil products was the same as for crude oil products. C) The quota for residual fuel oil products was the same as for crude oil products.
An analysis of the mandatory oil quota program shows that separate quotas were establish for crude oil and for petroleum products. Petroleum products were divided into light products (mostly gasoline, jet fuel, and distillate) and heavy or residual fuel oil products. The quota for crude oil imports was set at approximately ten percent of crude oil consumption. The passage implies which of the following about the oil quota program? A) Jet fuel was included in the crude oil quota. B) Approximately ninety percent of crude oil needs were to be met domestically. C) The quota for residual fuel oil products was the same as for crude oil products. D) The quota for residual fuel oil products was the same as for crude oil products. C) The quota for residual fuel oil products was the same as for crude oil products.
Final answer:The oil quota program implied that about 90% of crude oil needs were intended to be met domestically, as import quotas were set at approximately 10% of consumption. Residual fuel oil products quota was not necessarily the same as for crude oil. The quota program was designed to balance domestic production and imports to maintain energy security.Explanation:The oil quota program seems to imply that approximately ninety percent of crude oil needs were to be met domestically. This is because thequotafor crude oil imports was set at approximately ten percent of crude oil consumption. The crucial factor in understanding this analysis is that quotas were established separately for crude oil and other types of petroleum products, including light and heavy/residual fuel oil products. Jet fuel, for instance, was categorized under light products and not under the crude oil quota. The quota for residual fuel oil products wasn't necessarily the same as for crude oil products. As the information provided does not specify this correlation, it's important not to make unsupported presumptions. Therefore, it's reasonable to conclude that the quota structure in the oil quota program aimed at balancing domestic production and imports to meet national requirements while maintaining a level of energy security. The objective, clearly, was for the majority of crude oil needs to be met domestically. An illustration of this can be seen in the United States' oil consumption pattern. Oil provides about 36% of all energy and some percentage of that (depending on the specific year's statistics) is imported. With situations such as the Middle East disruptions shifting the supply curve and affecting prices, the U.S. has tried strategies such as domestic oil resource conservation and supplementing supplies with imports when required, making an argument for both balanced importing and domestic supply management.Learn more about Oil Quota Program here:brainly.com/question/31309162#SPJ11...