OPEC, the Petroleum Industry, and United States Energy Policy

By Arabinda Ghosh | Go to book overview

OPEC is more vulnerable than ever before. Yet, it is too early to write the epitaph of this great oil cartel. For we must understand that Saudi Arabia had been overproducing crude oil at 10.2 m/b/d throughout 1980 and most of 1981 in order to force other members of OPEC to cut their prices, which ranged from $35.50 to $41 a barrel. As Saudi Arabia slashes its production steeply and Iran is prevented from selling an increasing amount of crudes to obtain larger revenues, much of the glut in the world oil market will dry up.

As seen in Figure 1.2, a small imbalance between world oil supply and demand can have a dramatic impact on stock levels. Other things being equal, an excess or shortfall of only 2 percent of supplies, lasting six months, could produce almost a 40-percent buildup or drawdown of the 500 million barrels of above-historic usable commercial inventories available in early 1981. 11 Also, when the Western economies finally emerge from the recession, demand for oil will increase when their economies surge ahead to their long-run growth paths. Similarly, the demand for oil from the Third World countries will also be increasing with the prosperity of the industrialized nations. Once this happens, the smiling faces of OPEC oil ministers at their semiannual gatherings will once again be splashed in world's newspapers, as they have so many times before.


NOTES
1.
Report of the Federal Energy Administration, Washington, D.C., 1976.
2.
Annual Report on World Commerce, General Agreement on Tariffs and Trade (GATT), Geneva, Switzerland, November, 1981.
3.
"Oil and the Saudi Fairy Tale," Wall Street Journal, May 22, 1981.
4.
New York Times, September 9, 1975.
5.
C. Fred Bergsten, "The Thrust from the Third World," Foreign Policy (Summer 1973).
6.
Gary Shilling, "History of Economic Cartels," Wall Street Journal, August 8, 1974.
7.
World Financial Markets, Morgan Guaranty Trust, New York City, May 1975.
8.
American Petroleum Institute, Bulletin, January 25, 1982.
9.
New York Times, October 14, 1980.
10.
Wall Street Journal, April 6, 1982.
11.
World Oil Inventories, Exxon Corporation, New York City, August 1981.

-16-

Notes for this page

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Project items

Items saved from this book

This book has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this book

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this page

Cited page

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited page

Bookmark this page
OPEC, the Petroleum Industry, and United States Energy Policy
Settings

Settings

Typeface
Text size Smaller Larger
Search within

Search within this book

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen
/ 208

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.