The Oil Market in the 1980's: A Decade of Decline

The Oil Market in the 1980's: A Decade of Decline

The Oil Market in the 1980's: A Decade of Decline

The Oil Market in the 1980's: A Decade of Decline

Synopsis

This contributed volume examines the far-reaching effects of the weakening of OPEC's cohesion and influence in the 1980s, the decline of resulting oil price and the accompanying economic reversals. These events resulted in both fortune and misfortune for oil users and producers and dramatically changed energy economics worldwide. Moreover, as revealed in this volume, the decade of the 1980s demonstrated that oil producers and oil importers can prosper in an atmosphere of mutual respect, cooperation, and moderation.

Excerpt

One of the more exciting and far-reaching economic events of the 1980s was oil price's roller coaster behavior. the decade began with the Organization of Petroleum Exporting Countries (OPEC) again flexing its monopoly muscle over oil with price increases that once again threatened the equilibrium of the world economy. Despite economic adjustments to the oil price increases of the 1970s made by importing nations, further economic wrenching seemed imminent. Then, as rapidly as prices rose, they began to fall. the opec bond split as both price cutting and increased production by opec members broke apart the existing menu of oil prices. the failure of disparate and warring nations to achieve an effective oil monopoly, which had been predicted by Western neoclassical economists for over a decade, had finally come to pass.

We, the editors, believed that the responses of oil exporters and importers to the changing price of oil during the 1980s would prove to be an interesting contemporary economic history. We also believed that there would be other economists with similar views. We were fortunate enough to find them.

Part I of this volume presents a profile of the economic dislocations and hardships that resulted from the breakup of opec and non-OPEC nation oil exporters. the economies and economic plans of these nations were buffeted by the oil price decline. Slowed foreign exchange receipts, declining terms of trade, and fluctuating exchange rates all mitigated against oil suppliers. Part ii investigates a range of oil importer responses to the economic ramifications of rising (1970s) and declining (1980s) oil prices. While the oil-importing Western nations . . .

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