OPEC's Triumph like a true Cartel

Washington Post, March 12, 2008 page A19: Since 1999, annual oil revenue for OPEC natons has more than quadrupled, to an estimated $670 billion in 2007, says energy economist Philip Verleger Jr. What is less clear is whether OPEC has merely benefited from tight oil markets or has acted as a true cartel, restricting output and raising prices. My comment: The answer maybe nebulous at best. A cartel is a group of sellers of a product who have joined together to control its production, sale, and price in the hope of obtaining the advantages of monopoly. An example of the formation of a cartel is the OPEC which began to make decisions in unison in the 1970s. History may repeat and time will tell!? Dependence on oil imports, almost 60% of US supply, is inevitable. But we could limit OPEC's market power by curbing our demand and increasing our supply.(sic) A weaker global economy may dampen demand. Whatever happens, the long term threat of a global oil cartel will remain. I am inclined to agree with Robert J. Samuelson's conclusion.