Page 108 - Mariners Cricket Club (Singapore) - Souvenir Magazine 2020

includes over 18 countries, supplying over Regardless, it’s also important to view the
one-third of the world’s crude oil production
and controlling more than 80% of the world’s
proven crude oil reserves.
Today, these representatives meet twice a year
in Vienna, Austria, where they collectively
decide whether to raise or lower oil output to
maintain a stable market. Such manipulation of
supply has historically been an effective means
of oil price control for the alliance. But this is
changing in today’s U.S.-centric oil market and
amid crude oil price disruptions caused by the
pandemic.
OPEC’s supply decisions could be viewed
as either a mechanism to secure consistent
oil supply or as a method to maintain prices
at a profitable level for their organization.
108
Mariners’ Cricket Club (Singapore)
Mariners ’ Crick et Club (Singapor e ) 108
larger story of production and consumption
worldwide when evaluating the organization’s
historical impact.
With more than three-quarters of the world’s
proven oil reserves controlled by member
nations, OPEC has historically modulated
prices with the knowledge that most countries
could neither compete with its abundant oil
reserves nor create a competitively viable
energy alternative. Because of this, a cyclical
market dynamic naturally develops.
Increasing relevance of non-OPEC players
In the years of economic expansion that
characterized the early 2000s, OPEC’s
stabilization efforts were effective. Large global