Technical analysis of the international oil market

Technical Report · Thu Jun 01 00:00:00 EDT 1978

DOI:https://doi.org/10.2172/6810903· OSTI ID:6810903

This study of the international oil market includes the changing structure of the industry, the worldwide surplus in refinery capacity and tankers, and the role of the spot market and movement of petroleum products between regions. The study shows there have been significant changes in the structure of the international oil industry in recent years. In the OPEC countries the major international oil companies have lost the power of decision-making with regard to investment, volume, and price, although their role in downstream activities in the major industrial consumer countries remains substantial. At the same time as the control levers of oil supply have passed into OPEC hands, the USA has increased its dependence on foreign oil supplies up to almost 50 percent of demand. Unless either greatly increased efficiency of energy use can lead to a substantial reduction in energy demand growth--or higher energy prices cannot be absorbed by the economic system, resulting in a prolonged period of recession--constraints are likely to exist in energy supplies some time before the mid-1980s, bringing about a substantial increase in oil prices in real terms. Such a situation will call for careful management by all concerned--consumers and producers, government and industry--if competitive bidding for available supplies is to be avoided and economic activity is not to be affected. Monitoring the evolution of supply developments would be an important adjunct of policymaking. This would necessitate keeping a close track of world energy and oil supply/demand developments on a broad regional basis at regular (e.g., quarterly) intervals.

• Research Organization: Petroleum Economics Ltd., London (UK)
• OSTI ID: 6810903
• Report Number(s): HCP/H60878-01
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
29 ENERGY PLANNING
POLICY AND ECONOMY
PETROLEUM
MARKET
PETROLEUM INDUSTRY
GLOBAL ASPECTS
DATA COMPILATION
ENERGY CONSERVATION
OPEC
PETROLEUM PRODUCTS
PETROLEUM REFINERIES
SUPPLY AND DEMAND
TANKER SHIPS
US DOE
ENERGY SOURCES
FOSSIL FUELS
FUELS
INDUSTRY
INTERNATIONAL ORGANIZATIONS
NATIONAL ORGANIZATIONS
SHIPS
US ORGANIZATIONS
020700* - Petroleum- Economics
Industrial
& Business Aspects
294002 - Energy Planning & Policy- Petroleum