Why oil prices go up. II. The future: OPEC wants them

Journal Article · · Foreign Policy; (United States)

OSTI ID:7231104

Moran, T H

Oil-consuming countries will have to choose between forcing Organization of Petroleum Exporting Countries (OPEC) to hold down prices and their own economic development or accepting escalating energy costs. Energy demand will continue to grow, but as new energy supplies from non-OPEC sources become available in the 1980s, market patterns will shift. This will prevent OPEC from generating the revenue it needs unless it assigns production quotas and raises prices. Projections of the 1980 supply and demand balance for Organization for Economic Cooperation and Development (OECD) show a total demand of 87 million barrels per day--total non-OPEC supply of 57.9 mbd, and a residual demand for OPEC supply of 29.1 mbd. The degree to which individual OPEC countries scale down their efforts for development, defense, international influence, and social welfare in the interests of their consumers will determine the amount of tension developed among member nations. A possible policy for consumers is to reward those nations which increase their output rather than their prices. (DCK)

• Research Organization: Johns Hopkins Univ., Baltimore
• OSTI ID: 7231104
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 25; ISSN FRPLA
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
021000 -- Petroleum-- Legislation & Regulations
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
CHARGES
COMPETITION
DEVELOPING COUNTRIES
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ENERGY DEMAND
ENERGY SOURCES
ENERGY SUPPLIES
FORECASTING
FOSSIL FUELS
FUELS
INCOME
INTERNATIONAL COOPERATION
INTERNATIONAL ORGANIZATIONS
MARKET
OPEC
PETROLEUM
SOCIO-ECONOMIC FACTORS
TRADE