Prospects for Non-OPEC Oil Supply

Abstract

Because of the non-competitive nature of world oil markets (due primarily to the presence of OPEC), non-OPEC countries will have to meet a significant share of the expected increase in world oil demand over the next fifteen years. But this is likely to occur only if the price of oil rises enough to justify the needed investment in the exploration for and the development of increasingly more expensive oil, found in increasingly more hostile environments. If oil prices do not rise, the call on OPEC could increase dramatically, an increase which OPEC members may not be willing or able to satisfy.