Conflict and cooperation in OPEC: prospects for the next decade

Journal Article · · Int. Organ.; (United States)

DOI:https://doi.org/10.1017/S0020818300026564· OSTI ID:6759760

Jabber, P

Since 1973 the Organization of Petroleum Exporting Countries has emerged as a working governmental cartel with formidable leverage over international economic relations and Middle Eastern politics. Over the next decade, OPEC will continue to operate as an effective cartel able to maintain real oil prices at least at or near the levels achieved in 1973-74. Expected world oil demand levels will be high enough to obviate substantial economic threats to the Organization's cohesion. Nor are potentially contentious political or ideological issues likely to be pursued by major OPEC members with sufficient vigor to jeopardize the cartel. Of cardinal importance is the fact that only Saudi Arabia is in a position to break the cartel unilaterally. Such Saudi action is highly improbable in the medium term, though after 1980 Saudi leverage will increase and raise with it the utility of oil-production rates as a diplomatic weapon.

• Research Organization: Univ. of California, Los Angeles
• OSTI ID: 6759760
• Journal Information: Int. Organ.; (United States), Journal Name: Int. Organ.; (United States) Vol. 32:2; ISSN INORB
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
293000 -- Energy Planning & Policy-- Policy
Legislation
& Regulation
294002* -- Energy Planning & Policy-- Petroleum
ASIA
CARTELS
COMPETITION
ECONOMIC POLICY
ECONOMICS
ENERGY POLICY
ENERGY SOURCES
FORECASTING
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INDUSTRY
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
OPEC
PETROLEUM
PETROLEUM INDUSTRY
PRODUCTION
SAUDI ARABIA