OPEC prices distort shape of world economy

Journal Article · Mon Oct 17 04:00:00 EDT 1977 · Energy User News; (United States)

OSTI ID:7279127

Safer, A E

History reminds us that, because the revenues that the Organization of Petroleum Exporting Countries (OPEC) are enjoying and expecting to use to achieve their own development goals can only be done at the expense of the economic health of the rest of the world, energy policy needs to be incorporated into national and international economic policy. Three sets of critical economic forces are the market and price status of petroleum, the size and distribution of petrodollar surplus, and the recycling of those surpluses. If the oil-consuming nations should regain control of the market, the economic development of oil-producing nations will be slowed. Independent action by Saudi Arabia to cut production will force countries unable to afford it to lower their production. A concentration of petrodollar surplus in the Arab states will cause OPEC members with larger populations to go into current account deficits. Because forecasts of the surplus appear now to have been overestimated and the stronger countries have maintained an acceptable balance of trade, the major problem will be the distribution and financing of payments deficits. A simultaneous proposal by the administration would stimulate deficits in consumer countries, which would buy more commodities directly from developing countries. (DCK)

• OSTI ID: 7279127
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:41; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
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29 ENERGY PLANNING, POLICY, AND ECONOMY
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CARTELS
CHARGES
DEVELOPING COUNTRIES
ECONOMIC DEVELOPMENT
ECONOMIC IMPACT
ECONOMIC POLICY
ECONOMICS
ENERGY POLICY
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FORECASTING
FOREIGN POLICY
FOSSIL FUELS
FUELS
GOVERNMENT POLICIES
INCOME
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INTERNATIONAL ORGANIZATIONS
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OPEC
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SOCIAL IMPACT
TRADE