Organization of Petroleum Exporting Countries members and US policies
Time and events since 1974 have provided perspective on the Organization of Petroleum Exporting Countries (OPEC) revolution. The oil price shock of 1973 to 1974 was the outcome of a confluence of economic, security, and political trends that had been evolving during the previous two decades. Although many had predicted the collapse of the OPEC cartel and of the price of oil following 1974, the oil price increases were sustained primarily by the price and production decisions of two dominant producers: Kuwait and Saudi Arabia. The OPEC cartel did not collapse because OPEC was not a cartel. A revolution in one major oil-producing nation and a war between two oil-producing states during the period from late 1978 to early 1980 triggered the second oil price shock of the last decade. Thus the world learned the hard way that it is as necessary to pay attention to the potential impact of political and military events on world oil markets as it is to focus on energy consumption and production trends. Regarding US policies, further reductions in US oil imports would encourage oil producers to be more cautious when setting their price and production policies. At the same time, the United States should also work to reduce the risk of oil-supply disruptions - in particular in the Persian Gulf region.
- Research Organization:
- International Monetary Fund, Washington, DC
- OSTI ID:
- 5648369
- Journal Information:
- Ann. Am. Acad. Polit. Soc. Sci.; (United States), Vol. 460
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING
POLICY AND ECONOMY
ENERGY POLICY
OPEC
POLITICAL ASPECTS
STABILITY
PETROLEUM
MARKET
USA
FOREIGN POLICY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
INTERNATIONAL ORGANIZATIONS
NORTH AMERICA
OIL-EXPORTING COUNTRIES
021000* - Petroleum- Legislation & Regulations
294003 - Energy Planning & Policy- Natural Gas
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation