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The International Market for Oil is Not a Free Market

Dr. Roger Meiners
Dr. Roger Meiners
April 29, 2013—A report co-authored by Roger Meiners, the Goolsby-Rosenthal Chair in Economics and Law, argues that OPEC’s manipulation of the international oil market has generated significant negative impacts on the U.S. and other oil-consuming nations. Co-written with Andrew Morriss, the D. Paul Jones, Jr. and Charlene A. Jones Chairholder in Law & Professor of Business at the University of Alabama School of Law, “Competition in Global Oil Markets: A Meta-Analysis and Review” was released today at an event at the Cato Institute in Washington, DC. The report was published by Securing America’s Future Energy (SAFE), a nonpartisan organization that aims to reduce America’s dependence on oil and improve U.S. energy security to bolster national security and strengthen the economy.
 
Key arguments presented in the report include:
 
  • OPEC has successfully forced oil prices higher than a free market would dictate
  • OPEC’s market manipulation is costing Americans money
  • OPEC thrives on the oil dependence of the U.S. and others
  • Increased U.S. oil production does not change the fact that oil prices in the U.S. are determined by a global market
  • Oil prices are extraordinarily volatile, in part because the oil market is not free
  • Oil price volatility is a major problem for U.S. businesses
  • Oil prices are susceptible to corruption within OPEC
  • OPEC has the additional advantage of lower production costs
View SAFE’s news release.