Role of OPEC in World Economy INTRODUCTION World crude oil prices have

In recent months, however, demand for crude oil in the developed countries, particularly the United States, has begun to rise significantly, if not dramatically. Some economists and energy experts predict that a continuation of this demand trend will result in another energy crisis in the firsthalf of the 1990s, wherein OPEC will be in a position to control supply and dictate prices. The projection by other economists of a global economic boom by the mid1990s1 supports this thesis. Contradicting the thesis, however, are reports of continued increases in energy reserves, which hold the potential of creating an energy glut for decades to come.2

1C. R. Morris, "The Coming Global Boom," The Atlantic, October 1989, 5158.

2M. L. Wald, "An Energy Glut in the Ground Imperils Ecological Hopes," The New York times, 15 October 1989, E5.

In the wake of recent experience, and with cognizance of future predictions, this research examines the role of OPEC in the world economy of the 1990s. Specifically, this r

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rices in the early1980s. Thus, countries such as Nigeria, Venezuela, 8and others have also found it expedient to cheat OPEC policies on occasion. Second, major non OPEC oil exporters such as Norway, the United Kingdom, and Mexico have failed to cooperate with OPEC in its attempts to stabilize crude oil production and prices. Lastly, the discovery of new energy reserves has impeded the effective implementation of OPEC's production and price stabilization policies. IMPERATIVES WHICH CAUSE OPEC MEMBER STATES TO DISREGARD PRODUCTION AND PRICE STABILIZATION POLICIES In defining the problem facing OPEC, with respect to world crude oil prices, and development of the economies of the OPEC countries, it is necessary to consider many factors. These factors include both the international and domestic environments in which the OPEC countries function. Quite simply, the collapse of world crude oil prices, and crude oil demand have placed in jeopardy both the domestic and international agendas of the OPEC member countries. The governments of the countries are under enormous pressures to satisfy the demands of their domestic and international clients, on the one hand, while, on the other hand, the coun tries' earnings from
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Some common words found in the essay are:
Saudi Arabia, STABILIZATION POLICIES, Countries OPEC, University Press, Martin's Press, Economic Activity, Kingdom Mexico, North American, Monetary Fund, Iran Iraq, crude oil, saudi arabia, oil prices, crude oil prices, world crude oil, world crude, opec countries, international reserves, oil price, oil reserves, crude oil reserves, energy reserves, opec oil, crude oil production, international monetary fund,
Approximate Word count = 4104
Approximate Pages = 16 (250 words per page)

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