OPEC can wait: we can't; action proposal

Journal Article · · Foreign Policy; (United States)

OSTI ID:7359387

Moorsteen, R

Hollis B. Chenery, in a January 1975 article in Foreign Affairs, estimated that OPEC will have claims against the Organization for Economic Cooperation and Development countries of $285 billion by 1980, rising to $500 billion by 1985, and then tapering off by the 1990s. He concluded that this massive reshuffling of resources could probably be managed, using the Marshall Plan as an example. The difference, though, is that the Marshall Plan was carried out among countries with mutually supportive objectives. This present case involves one nation, the United States, that has policies and objectives very much at odds with those of the wealthiest OPEC nations. The amassing of such wealth by the Arab states may present a situation with which the U.S. may be unable to cope. Lower oil prices are needed, but OPEC nations could elect to keep their oil reserves in the ground, opting for higher prices or for their own secure energy sources. The ideas that have been presented for solving the energy problems of the U.S. that could keep the energy prices down are summarized, but they need to come to fruition soon. OPEC can afford to wait and see whether these solutions are politically viable or technically attainable. Meanwhile, OPEC oil prices remain high, output remains low, and OPEC amasses more and more petrodollars, increasing in staying powers and U.S. problems. If the U.S. could pass a law that OPEC members thought would be carried out and would almost surely bring a large increase in low-cost energy availabilities in a short time, lower prices might be forthcoming. Some activities are listed that could decrease dependence on OPEC oil, but they are all moving too slowly to avoid the fearsome projected overhang of petrodollars. (MCW)

• OSTI ID: 7359387
• Journal Information: Foreign Policy; (United States), Journal Name: Foreign Policy; (United States) Vol. 18; ISSN FRPLA
• Country of Publication: United States
• Language: English

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02 PETROLEUM
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29 ENERGY PLANNING, POLICY, AND ECONOMY
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