Optimum production and pricing policies

Journal Article · · J. Energy Dev.; (United States)

OSTI ID:5900639

Al-Chalabi, F; Al-Janabi, A

The Organization of Petroleum Exporting Countries (OPEC) ended the unilateral role the major oil companies had played in setting price policies for international crude oil trade and price administration reverted to the exporting countries. Three major forces - the consuming countries, the oil companies, and the producing countries - actually interact through various ways other than a free market to establish the price of oil. The parameters for this interaction are examined and areas of price and income elasticity noted. Pricing policies must consider the economies of consuming countries and, in particular, must develop a mechanism that can respond to inflation and fluctuations in exchange rates. Long-term real prices should reflect replacement and substitution costs and resource depletion and exhaustion.

• Research Organization: Organization of Petroleum Exporting Countries, Vienna, Austria
• OSTI ID: 5900639
• Journal Information: J. Energy Dev.; (United States), Journal Name: J. Energy Dev.; (United States) Vol. 4:2; ISSN JENDD
• 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
ECONOMIC IMPACT
ECONOMIC POLICY
ENERGY POLICY
ENERGY SOURCE DEVELOPMENT
ENERGY SOURCES
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INTERNATIONAL ORGANIZATIONS
MARKET
OIL-EXPORTING COUNTRIES
OPEC
OPTIMIZATION
PETROLEUM
PRICES
PRODUCTION