Middle East: the cartel is weakened, but prices are holding. [Extensive survey of all drilling activities in Middle East oil-producing countries]

Journal Article · Fri Aug 15 00:00:00 EDT 1975 · World Oil; (United States)

OSTI ID:7265883

The combination of high oil prices and an almost world-wide stagflation resulted in a markedly reduced demand for crude--in the face of ballooning capacity in the Middle East and other OPEC member nations. Under normal economic laws, a surplus supply and declining demand would result in falling prices. But although there was some miniscule price cutting (in the form of longer credit terms, elimination of premiums for low sulfur content, etc.), the cartel maintained its precarious balance in these uncertain economic times. Production curtailments in Saudi Arabia, Kuwait, Iran, Nigeria, Venezuela, and other exporters attested to the decline in demand. However, some of these countries will be strained to produce at a significantly reduced rate for too long a period, with Iran a good case in point. As long as OPEC members can maintain lower production rates, they can efficiently continue to mandate the world price of oil. The one possibility for a reduction is for one or more major producers to unilaterally drop the price. This would, of course, shake OPEC badly. However, Saudi Arabia remains the key simply because of its immense producing capacity and the fact that it can cut its production drastically--to maintain prices--and still accrue sufficient income to support domestic financial needs. Highlights of recent developments in Middle East oil-producing countries are summarized for Saudi Arabia, Iran, Kuwait, Abu Dhabi, Dubai, Sharjar, Fujairah, Ajman, Umm Al Quawain, Ras Al Khaima, Iraq, Qatar, Oman, Syria, Bahrain, Israel, Turkey, Jordan, Lebanon, South Yemen, and Yemen. (MCW)

• OSTI ID: 7265883
• Journal Information: World Oil; (United States), Vol. 181:3
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
02 PETROLEUM
03 NATURAL GAS
MIDDLE EAST
NATURAL GAS INDUSTRY
PETROLEUM INDUSTRY
NATURAL GAS
PRODUCTION
OPEC
PETROLEUM
DRILLING
EXPLORATION
MARKET
SEISMIC SURVEYS
ENERGY SOURCES
FLUIDS
FOSSIL FUELS
FUEL GAS
FUELS
GAS FUELS
GASES
GEOPHYSICAL SURVEYS
INDUSTRY
INTERNATIONAL ORGANIZATIONS
294002* - Energy Planning & Policy- Petroleum
294003 - Energy Planning & Policy- Natural Gas
020300 - Petroleum- Drilling & Production
030300 - Natural Gas- Drilling
Production
& Processing