Prospects for the world oil market

Journal Article · Tue Jan 01 04:00:00 EST 1985 · Energy J.; (United States)

OSTI ID:5896037

Singer, S F

The first oil price jump (of 1973-74) from about $3 to $12 per barrel represents the correct adjustment from the point of view of the core producing countries (Saudi Arabia, Kuwait, and the United Arab emirates) for maximizing profits over time. The author develops the supporting calculations. The optimal pricing strategy is to increase output until price falls to about $20, and then let the price rise slowly until it equals the present value (in real terms) in about the year 2000. Political considerations, however, may preclude this approach because it would lower revenues of other producing countries and could lead importers to impose protective tariffs. 2 figures.

• Research Organization: George Mason Univ., Fairfax, VA
• OSTI ID: 5896037
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 6:1; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002 -- Energy Planning & Policy-- Petroleum
ASIA
CALCULATION METHODS
ECONOMIC POLICY
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INSTITUTIONAL FACTORS
KUWAIT
MIDDLE EAST
OIL-EXPORTING COUNTRIES
OPTIMIZATION
PETROLEUM
POLITICAL ASPECTS
PRICES
PRODUCTION
SAUDI ARABIA
UNITED ARAB EMIRATES