OPEC's threat to the West. [U. S. counter-active measures]

Journal Article · · Foreign Policy; (United States)

OSTI ID:5009140

Pindyck, R S

The evolution of energy and economic impacts caused by the Organization of Petroleum Exporting Countries (OPEC) is traced, and recommendations are made for policies that will soften future blows. Future OPEC price and production levels are estimated as a basis for assessing possible crises and determining appropriate policy. Best price is likely to be set to maximize future revenues in accordance with residual demand, resource depletion, and the dichotomy of OPEC's economic development goals. A slow increase in prices is forecast, barring destructive political events. U.S. policies are based on a Central Intelligence Agency crisis report that is felt to be unrealistic because it ignores the price sensitivity of demand and OPEC's capacity to increase production. U.S. policy should include a domestic strategic oil reserve, encouragement of similar reserves in other oil-importing countries, and a slower economic growth rate.

• Research Organization: Massachusetts Inst. of Tech., Cambridge
• OSTI ID: 5009140
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 30; ISSN FRPLA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
024000 -- Petroleum-- Storage-- (-1989)
29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
CARTELS
CHARGES
DEVELOPING COUNTRIES
ECONOMIC DEVELOPMENT
ECONOMIC ELASTICITY
ECONOMIC IMPACT
ECONOMIC POLICY
EMBARGOES
ENERGY POLICY
ENERGY SHORTAGES
ENERGY SOURCES
FORECASTING
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL ORGANIZATIONS
OIL-IMPORTING COUNTRIES
OPEC
PETROLEUM
PRODUCTION
RESERVES
RESOURCE DEPLETION
RESOURCES
STRATEGIC PETROLEUM RESERVE
SUPPLY AND DEMAND
TRADE