Theory and evidence about the structure of the international oil market: 1974-1980; a collection of related essays

Thesis/Dissertation · Sat Jan 01 04:00:00 EST 1983

OSTI ID:6635822

Loderer, C F

One can argue that the international oil market is competitive. This dissertation, a collection of related essays, tries to resolve that issue by considering the 1974-80 period. The first essay tests the hypotheses that OPEC affects market prices. The analysis employs time-series tests involving spot prices of oil products and stock market portfolio returns. The findings confirm the hypothesis. The second essay looks for other evidence supporting the claim that OPEC is an effective cartel. The cartel is modelled as a dominant producer in a multiperiod world. The evidence contradicts the model. The findings cast doubts on most cartel explanations of the high oil prices. The third essay builds on MacAvoy's findings that the oil prices of the 1970's are mainly the result of an increasing demand and of declining new discoveries. During the first half of the 1970's, ownership of most crude oil reserves in the world was shifted from the international oil producing companies to their host countries through nationalizations and more or less forced equity participation agreements. The evidence shows that the timing of output policy changes in individual countries. However, controlling for changes in price expectations and reserve accumulations, these events are not an important determinant of output rates. Assuming the methodology used is correct, they cannot be a major reason for the oil price increase of the 1970's.

• OSTI ID: 6635822
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700* -- Petroleum-- Economics
Industrial
& Business Aspects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
294002 -- Energy Planning & Policy-- Petroleum
COMPETITION
ECONOMIC ANALYSIS
ECONOMIC IMPACT
ECONOMICS
ENERGY SOURCES
FOSSIL FUELS
FUELS
GLOBAL ASPECTS
INTERNATIONAL ORGANIZATIONS
MARKET
OIL-EXPORTING COUNTRIES
OPEC
OWNERSHIP
PETROLEUM