Industry upheaval, OPEC response - and oil price formation

摘要: Increased focus on shareholder returns, capital discipline and return employed (RoACE) caused a slowdown in investment production growth among international oil companies around the turn of century. Focusing supply side dynamics market, we explore hypothesis that upheaval industry towards end 1990s had long-lived effects OPEC behaviour – price formation. Based partial equilibrium model for global compare actual development with counterfactual reference scenario characterised by industrial stability unchanged ambitions within OPEC. A key result is important factors behind currently high can be traced back to Asian economic crisis.