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U.S. Department of Energy
Office of Scientific and Technical Information

Absorptive capacity of the OPEC countries

Technical Report ·
OSTI ID:7357650

Reliance on market forces is the recommended way for the oil consuming countries to transfer resources to OPEC (Organization of Petroleum Exporting Countries). OPEC nations have so far reconciled their increased revenues and requirements with adjustments in prices and production, while allowing a deficit of services to grow. Aggregate imports are expected to increase from $37 billion in 1974 to $133 billion by 1985, but the annual increase in imports will decrease from 45% in 1974 to 8% by 1985. Redistribution of oil revenues will be handled differently by each country. OPEC investments abroad have increased, but consumer nations should avoid competing for investments with subsidies and guarantees. Individual analyses of the 12 OPEC countries show the distribution of surplus revenue to be heavily weighted toward Saudi Arabia, Iran, and Kuwait, while Libya and Nigeria are approaching equilibrium, and Algeria is using international loans to finance its imports. (DCK)

Research Organization:
Department of the Treasury, Washington, D.C. (USA). Office of Middle Eastern Affairs; U.S. Dept. of Treasury, Office of Middle Eastern Affairs, Washington, DC 20220
OSTI ID:
7357650
Report Number(s):
NP-20665
Country of Publication:
United States
Language:
English