Elephant in the room: How OPEC sets oil prices and limits carbon emissions

By Alfred Cavallo, July 1, 2013

Despite a North American oil boom, non-OPEC crude oil production is not increasing, because new production roughly balances existing oil field decline. This situation allows OPEC, which has spare production capacity, to control the total global oil supply and therefore oil pricing. OPEC has raised crude oil prices by a factor of about four since 2002, reducing world demand. Thus, world crude oil production has been flat since 2005, and a major source of carbon emissions has been capped. This production plateau has been maintained in spite of significantly increased demand from China, India, and other developing countries. But governments in both developed and developing countries could reduce emissions more efficiently and fairly by putting in place, for example, a zero-net-revenue surcharge regime for fossil fuels, with all collected funds returned directly to consumers.

RELATED:
RELATED: Dems new climate plan: Fix our failing infrastructure? Check. Racial justice? Check.

As the coronavirus crisis shows, we need science now more than ever.

The Bulletin elevates expert voices above the noise. But as an independent, nonprofit media organization, our operations depend on the support of readers like you. Help us continue to deliver quality journalism that holds leaders accountable. Your support of our work at any level is important. In return, we promise our coverage will be understandable, influential, vigilant, solution-oriented, and fair-minded. Together we can make a difference.

Share: 

Leave a Reply

avatar
  Subscribe  
Notify of

ALSO IN THIS ISSUE

RELATED POSTS

Receive Email
Updates