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Q.

More and more oil and gas discoveries are taking place out side the OPEC countries. Will it slowly diminish the clout of OPEC as an oil cartel? Your views?

Asked by Good Citizen, 10 Jun '10 01:01 pm
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Answers (5)

 
1.

Unless almost equvalent amount of oil & gas is found in a substantially clustered position outside OPEC countries, small findings at different situations won't affect the clout & monopoly of those countries! OPEC Countries (most of them are Gulf contries) could get the maximum benefit of economies of scale because of huge quanitity of Oil & Gas at clustered / accumulated in relatively limited area!
Answered by Milind Madhukar Kulkarni, 10 Jun '10 01:50 pm

 
  
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2.

Well, first of all, OPEC does not enjoy the same level of clout as it used to do some time back. However, its importance in stabilizing the world oil prices would not get diluted very much. Its geographical location, especially the Middle East, makes a real difference. After all, Russia, one of the important oil producers in the world, is not an OPEC member. The new discovery of oil in Brazil etc would take more time to materialize. However, in view of the recent Gulf of Mexico off shore oil exploration accident by BPs contractor, the oil explorations are likely to be delayed in view of the dangers involved. Then, there is every likelihood of the new members joining the powerful trade block like OPEC because of the advantages involved. Now, as far as the net importers like India are concerned, it is not a win-win situation at all. We have to bear with the reality.
Answered by Tony Fernandez, 10 Jun '10 02:13 pm

 
  
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3.

The discoveries can never be able to reduce the clout of the OPEC countries because they r too small compared to the global consumption n OPEC production.
Answered by Damodar Biswal, 10 Jun '10 02:10 pm

 
  
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4.

May be, time will tell
Answered by iqbal seth, 10 Jun '10 01:05 pm

 
  
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5.

It will diminish OPEC influence in future. But please note that wherever oil is found, the climate of that place is also changes
Answered by Kurian Chacko, 10 Jun '10 01:05 pm

 
  
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