Spring Symposium on UR and Community Engagement has ended
Back To Schedule
Tuesday, April 24 • 2:00pm - 2:20pm
OPEC's Response To Individual Member Country Production Shocks

Sign up or log in to save this to your schedule, view media, leave feedback and see who's attending!

Many recognize the Organization of Petroleum Exporting Countries (OPEC) as a cartel for its behavior in manipulating oil prices through production. Cartel theory states that members of the cartel do not change their production levels if a member experiences a production shock, or a sharp decrease in production caused by an outside event. This paper examines evidence that suggests that OPEC is a cartel based on those shocks and their production data. The analysis focuses on the Iranian Revolution, the Persian Gulf War, and the Venezuelan Oil Strike which caused a sharp decrease in OPEC’s oil production, specifically in Iran, Iraq, Kuwait, and Venezuela. When one of the member countries experiences a shock, then there is a significant change in production by OPEC, however the magnitude is small in comparison to the total amount of oil produced.

Tuesday April 24, 2018 2:00pm - 2:20pm PDT
035 Karpen Hall