Future of OPEC
Staff members of Resources for the Future feel that the trend toward steadily increasing OPEC oil prices can be attributed to the need of governments of the member countries to raise revenues to finance the economic development programs begun since 1973. The inflationary effects of petrodollars has raised the cost of these programs to such an extent that even Saudi Arabia is expected to become sympathetic toward the need for higher prices. The oil-importing countries are finding the problem of OPEC surplus dollars is diminishing, but the less-developed importers who depend on OPEC aid are going to be adversely affected by a continued rise in prices. As OPEC nations pursue greater revenues they will have to determine market shares among the member nations, most of whom need the revenues. The effect may be a buyer's market if U.S. conservation efforts succeed and non-OPEC oil sources are developed. If the OPEC nations lower production and develop a large spare capacity, the cartel may become vulnerable to internal member nation's demands for revenue as well as external competition. (DCK)
- OSTI ID:
- 7306135
- Journal Information:
- Resources; (United States), Vol. 54
- Country of Publication:
- United States
- Language:
- English
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02 PETROLEUM
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ECONOMIC DEVELOPMENT
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ECONOMIC IMPACT
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ENERGY SOURCE DEVELOPMENT
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