The world oil market after the Iraq-Kuwait crisis: Economic and politicoeconomic considerations

Journal Article · · Energy Sources; (United States)

DOI:https://doi.org/10.1080/00908319408909063· OSTI ID:5138823

Wirl, F ^[1]

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1. Technical Univ. of Vienna (Austria). Inst. of Energy Economics

The recent crisis in the Gulf (Iraq's temporary annexation of Kuwait) will presumably inflict enormous damage on future oil markets on both sides, consumers and producers. Consumers will be aware of the potential insecurity of the oil supply from the Arab-Persian Gulf, ironically, at a time when OPEC members (others than Iraq and Kuwait) stood up to their commitment. The reason for this lack of confidence is that political objectives may dominate conventional economic goals so that the future oil market becomes unpredictable and potentially insecure. As a consequence, consumers may conserve even in period of low oil prices so that billions and billions of (opportunity) dollars might be wasted. Vertical integration may be a way to mitigate this insecurity and to increase the credibility of a reliable supply. Presumably the easiest way to regain some of the consumers' confidence seems to be to again offer the international oil companies larger responsibility for the oil market.

• OSTI ID: 5138823
• Journal Information: Energy Sources; (United States), Journal Name: Energy Sources; (United States) Vol. 16:1; ISSN 0090-8312; ISSN EGYSAO
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
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29 ENERGY PLANNING, POLICY, AND ECONOMY
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ECONOMIC IMPACT
ENERGY SOURCES
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
INSTITUTIONAL FACTORS
MARKET
PETROLEUM
POLITICAL ASPECTS
SUPPLY DISRUPTION
WARFARE