Observing OPEC's 20th birthday: how the oil bloc stands today
OPEC was formed 20 years ago when the producers perceived that major oil companies were conspiring to lower prices, but OPEC's domination of total world production and the industralized world's dependence on imported oil have led to the cartel's major triumphs of the past eight years. OPEC's power has caused major price shocks after 1973 and 1978. A major contribution to the growth of cartel power was the decline in US oil production, which peaked in 1970. Supply and demand in terms of oil prices and the world economic condition have fluctuated several times since the 1973 supply disruption and remain unstable in 1981. At the time this article was written, the author foresaw that OPEC prices could still rise as much as 30% in 1981 in spite of conservation efforts and more stable supply and demand conditions. Government policies to offset US vulnerability to OPEC control include building a strategic oil reserve and deregulation of oil prices, but the tradeoff has been higher inflation. (DCK)
- OSTI ID:
- 6169063
- Journal Information:
- Commod. J.; (United States), Vol. 16:2
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
POLICY AND ECONOMY
02 PETROLEUM
OPEC
ECONOMIC IMPACT
PETROLEUM
SUPPLY AND DEMAND
SUPPLY DISRUPTION
GOVERNMENT POLICIES
CARTELS
PRICES
ENERGY SOURCES
FOSSIL FUELS
FUELS
INTERNATIONAL ORGANIZATIONS
OIL-EXPORTING COUNTRIES
294002* - Energy Planning & Policy- Petroleum
020700 - Petroleum- Economics
Industrial
& Business Aspects