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OPEC has stood the test of time, and since its creation, has
proven to be one of the most prosperous and effective
industrial monopoly alliances the world has known.
Notwithstanding OPEC's success as a market controlling
power, noncompliance and cheating by members have
caused some problems along the way. In order for a cartel to
successfully control a market, there must be complete
cooperation and trust among members.
Value of
Total Value Percent of Total
OPEC Petroleum
of Exports Exports Made
Member Exports
(Million US Up of Petroleum
Country (Million US
Dollars) Exports
Dollars)
The above graph shows how the higher oil prices affect
output. In the long run, output falls in the US, Europe and the
Euro Area. The short run output effects are largest in the US
in part because of its higher oil intensity, and also because
the inflation effect is larger, and hence, the monetary
response is more immediate. As a result, real long rates rise
rather more than in the Euro Area.
0.4%.
Plants (IPP).
Nuclear LPG
Coal 1.2% 0.4%
7.6%
Oil
29.4%
diesel (HSD) and fuel oil (FO). Only 18 percent of the liquid
fuel supplies are met from local sources, and the balance is
Over the past three years, gross imports of liquid fuels have
during the year 2003-04 was 10.27 million tons. The deficit
2003-
2004-05 2010-11 2017-18
2004
Demand of
Petroleum 14.3 15.0 17.0 19.0
Products
Production from
10.3 12.0 11.3 11.8
Local Refineries
Surplus Naphtha /
Motor gasoline
1.3 1.3 0.8 0.8
available for
exports
Deficit of HSD
5.0 5.0 6.5 8.2
and FO
Import of
Crude Oil 4.45 7.03 7.07 7.14 7.84 8.28
Import of
Petroleum
Products 11.87 10.03 9.02 8.43 5.17 5.62
Value in
million US $ 2,783 3,326 2,655 3,096 3,119 4,534
100%
90%
50%
40%
0%
100%
126,485
80% 353,469
578,452 635,175
60% 865,969
1,011,995
40% 355,881
433,425
Even the experts say that OPEC is monopoly, but due to the
presence of non-OPEC countries which will also affect the oil
prices and cause competition to affect fixing prices of crude
oil, which will shows us that OPEC is probably the best
example of oligopoly.
References
www.opec.org
Outlook Profit Supplementary September 2008 Edition,
which is published on OIL & GAS
The Economist
Organization of the Petroleum Exporting Countries
Monthly Oil Market Report, July 2008
www.google.co m
www.wikipedia.com
www.worldbank.org
www.hdip.com.pk
www.dawn.com