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Price and prospects for oil: carrying the burden of excess capacity in the 1980s and beyond

Abstract

The continuing decline in world oil prices will not be halted in the short term, and prospects for the long run are not encouraging. There is a problem of unprecedented gravity in the surplus capacity of the oil industry. A glut of 10 million bbl/day of crude oil remains unsold, the cohesion of the OPEC cartel is becoming more strained, and a sizeable proportion of refinery plant has been taken off-stream. The basic difficulty is that high interest rates have curbed international capital formation and depressed demand. Upward pressures on the US dollar have been created by the deficit on US domestic and external accounts, and have retarded the recovery of the global economy. Today, the cost of money exceeds the factor price of oil, and the market is highly unstable. The devastating costs of carrying surplus capacity are likely to survive through the 1980s. 6 figures.
Authors:
Publication Date:
Dec 01, 1985
Product Type:
Journal Article
Reference Number:
EDB-86-048416
Resource Relation:
Journal Name: Energy Policy; (United Kingdom); Journal Volume: 13:6
Subject:
02 PETROLEUM; 29 ENERGY PLANNING, POLICY AND ECONOMY; PETROLEUM; PRICES; PETROLEUM INDUSTRY; CAPACITY; ECONOMICS; FORECASTING; GLOBAL ASPECTS; MARKET; OPEC; SUPPLY AND DEMAND; ENERGY SOURCES; FOSSIL FUELS; FUELS; INDUSTRY; INTERNATIONAL ORGANIZATIONS; OIL-EXPORTING COUNTRIES; 020700* - Petroleum- Economics, Industrial, & Business Aspects; 294002 - Energy Planning & Policy- Petroleum
OSTI ID:
6017200
Research Organizations:
Rockefeller College of the State Univ. of New York, Albany
Country of Origin:
United Kingdom
Language:
English
Other Identifying Numbers:
Journal ID: CODEN: ENPYA
Submitting Site:
JMT
Size:
Pages: 524-534
Announcement Date:
Mar 01, 1986

Citation Formats

Goldstein, W. Price and prospects for oil: carrying the burden of excess capacity in the 1980s and beyond. United Kingdom: N. p., 1985. Web. doi:10.1016/0301-4215(85)90003-5.
Goldstein, W. Price and prospects for oil: carrying the burden of excess capacity in the 1980s and beyond. United Kingdom. https://doi.org/10.1016/0301-4215(85)90003-5
Goldstein, W. 1985. "Price and prospects for oil: carrying the burden of excess capacity in the 1980s and beyond." United Kingdom. https://doi.org/10.1016/0301-4215(85)90003-5.
@misc{etde_6017200,
title = {Price and prospects for oil: carrying the burden of excess capacity in the 1980s and beyond}
author = {Goldstein, W}
abstractNote = {The continuing decline in world oil prices will not be halted in the short term, and prospects for the long run are not encouraging. There is a problem of unprecedented gravity in the surplus capacity of the oil industry. A glut of 10 million bbl/day of crude oil remains unsold, the cohesion of the OPEC cartel is becoming more strained, and a sizeable proportion of refinery plant has been taken off-stream. The basic difficulty is that high interest rates have curbed international capital formation and depressed demand. Upward pressures on the US dollar have been created by the deficit on US domestic and external accounts, and have retarded the recovery of the global economy. Today, the cost of money exceeds the factor price of oil, and the market is highly unstable. The devastating costs of carrying surplus capacity are likely to survive through the 1980s. 6 figures.}
doi = {10.1016/0301-4215(85)90003-5}
journal = []
volume = {13:6}
journal type = {AC}
place = {United Kingdom}
year = {1985}
month = {Dec}
}