The World Oil Market: Past and Future*

M.A. Adelman

The Energy Journal, 1994, vol. 15, issue 1_suppl, 3-11

Abstract: Private owners of world oil resources eventually failed to restrain abundance and keep an above-competitive price. The OPEC nations had far greater market power, but overestimated it. Short time horizons drove OPEC nations to raise the price too much. They retreated to a more tenable level. But like all cartels, they find it hard to reconcile group welfare with short-run individual interest. Oil continues abundant, so far. The main obstacles to non-cartel expansion are man-made such as taxation and state companies. They are very slowly yielding. Depending on how fast they erode, world supply will grow, and price pressure will be downward.

Keywords: World oil market; OPEC; Market power; oil prices; oil supply (search for similar items in EconPapers)
Date: 1994
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:15:y:1994:i:1_suppl:p:3-11

DOI: 10.5547/ISSN0195-6574-EJ-Vol15-NoSI-2

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