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The organization has very little "spare capacity" the ability to rapidly increase production to make up for any unexpected shortfalls – outside Saudi Arabia and Abu Dhabi. For the last year at least, virtually every nation that can produce crude oil has been producing flat 3 fatmen out. Which left markets very uneasy. In the event of another significant crisis – say, a US attack on Iran or collapse of the Saudi government – the price of crude oil would skyrocket. Consuming nations themselves hold a lot of power too; we are not 3 fatmen simply victims of the producers 3 fatmen we like to think we are. After the 1973 oil embargo, non-OPEC production expanded rapidly, responding to higher prices that made higher-cost production economically viable. Consumers can change their buying patterns, like the gasoline-to-diesel switch going on in Europe (prompted by government action). |
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