The End of OPEC

Churchill


The cartel has struggled with both tasks. They have had some successes and some failures in keeping short term prices high. But since prices broke out of the $30 ceiling in 2003, OPEC had had little success in containing the price rise. Now analysts are increasingly questioning whether OPEC is able to contain oil prices. Whether they can or not will soon become evident. Regardless of whether OPEC can lower oil prices in the near term, it is clear that soon enough OPEC will not have that ability.

Let me digress for one moment to address the concept of Peak Oil, because I need to use the term. It is now time to adjust our definition, since the term is increasingly being used in a new way by the popular press.