1980-2000 How did the U.S. keep oil prices from Saudi Arabia down?

Question

I was supposed to find it on the internet, but I can't think of a way to search it properly and I've looked all over the place on google and wikipedia but I can't find it.
So does anyone know the answer? Please?

Answer 1

Here's a simple history of oil prices in the US and reasons why:

http://www.wtrg.com/prices.htm

The 80 - 2000 period is about halfway down.

"From 1980 to 1986 non-OPEC production increased 10 million barrels per day. OPEC was faced with lower demand and higher supply from outside the organization.

From 1982 to 1985, OPEC attempted to set production quotas low enough to stabilize prices. These attempts met with repeated failure as various members of OPEC produced beyond their quotas. During most of this period Saudi Arabia acted as the swing producer cutting its production in an attempt to stem the free fall in prices. In August of 1985, the Saudis tired of this role. They linked their oil price to the spot market for crude and by early 1986 increased production from 2 MMBPD to 5 MMBPD. Crude oil prices plummeted below $10 per barrel by mid-1986. Despite the fall in prices Saudi revenue remained about the same with higher volumes compensating for lower prices.

A December 1986 OPEC price accord set to target $18 per barrel bit it was already breaking down by January of 1987and prices remained weak.

The price of crude oil spiked in 1990 with the lower production and uncertainty associated with the Iraqi invasion of Kuwait and the ensuing Gulf War. The world and particularly the Middle East had a much harsher view of Saddam Hussein invading Arab Kuwait than they did Persian Iran. The proximity to the world's largest oil producer helped to shape the reaction.

Following what became known as the Gulf War to liberate Kuwait crude oil prices entered a period of steady decline until in 1994 inflation adjusted prices attained their lowest level since 1973.

The price cycle then turned up. The United States economy was strong and the Asian Pacific region was booming. From 1990 to 1997 world oil consumption increased 6.2 million barrels per day. Asian consumption accounted for all but 300,000 barrels per day of that gain and contributed to a price recovery that extended into 1997. Declining Russian production contributed to the price recovery. Between 1990 and 1996 Russian production declined over 5 million barrels per day.

OPEC continued to have mixed success in controlling prices. There were mistakes in timing of quota changes as well as the usual problems in maintaining production discipline among its member countries.

The price increases came to a rapid end in 1997 and 1998 when the impact of the economic crisis in Asia was either ignored or severely underestimated by OPEC. In December, 1997 OPEC increased its quota by 2.5 million barrels per day (10 percent) to 27.5 MMBPD effective January 1, 1998. The rapid growth in Asian economies had come to a halt. In 1998 Asian Pacific oil consumption declined for the first time since 1982. The combination of lower consumption and higher OPEC production sent prices into a downward spiral. In response, OPEC cut quotas by 1.25 million b/d in April and another 1.335 million in July. Price continued down through December 1998.

Prices began to recover in early 1999 and OPEC reduced production another 1.719 million barrels in April. As usual not all of the quotas were observed but between early 1998 and the middle of 1999 OPEC production dropped by about 3 million barrels per day and was sufficient to move prices above $25 per barrel.

With minimal Y2K problems and growing US and world economies the price continued to rise throughout 2000 to a post 1981 high. Between April and October, 2000 three successive OPEC quota increases totaling 3.2 million barrels per day were not able to stem the price increases. Prices finally started down following another quota increase of 500,000 effective November 1, 2000."

Answer 2

Mostly when prices were high it led to increased exploration and production in non opec nations which stabilized the price.
This offset attempts to price fix but cutting production by opec.
When they werent making as much money and saw nations were going elsewhere for their oil somewhat they would then increase production again so they would get the business.

Asian oil demand now throws a big wrench into things currently though.

Answer 3

ok, adult males (and likewise those and not using a y chromosome), enable's do the math. The U.S. has shown reserves of approximately 20 Billion Barrels of oil. The U.S. makes use of approximately 20 Million Barrels in line with day. If we supply up uploading oil, what number days can we proceed to be means autonomous? ...(whistles music from Jeopardy)... a million,000 days ANWR has between 3 BBL (low estimate) and 12 BBL (intense estimate. anticipate the intense end... upload approximately 600 days... The Bakken field in North Dakota has between 3 BBL and four.3 BBL. Be beneficiant and make contact with it 200 days... A usa Geological Survey (USGS) survey shows that entire American offshore reserves are someplace between 5.7 BBL and sixteen BBL. returned, enable's anticipate the intense end (and be beneficiant) and make contact with it 800 days. meaning the U.S. has entire oil reserves that would desire to fulfill 2,600 days (Tops!) of the country's oil call for. So will the Saudis decrease their value? the respond is that it is not significant in any respect in the event that they do. The disaster is coming. the suitable we are able to do is postpone it slightly. AND, delaying it can be a undesirable factor. intense fees are a great factor because of the fact they supply us incentive to start doing the flaws we would desire to do (shelter and boost possibilities) now. I, in my opinion, wish that the cost of oil maintains to flow up gradually, continually. because of the fact the alternative is that we carry the cost down by using some man made machinations, and we finally end up with a extensive ask your self.

Answer 4

Here's something to look at. I can't say it's accurate. I searched for:
oil price increases 2000

Answer 5

They did not champion lie-based wars in the Middle East. Also, the US dollar is currently dropping like a rock in value which adds to the problem.

Answer 6

By keeping both our wars and our ice caps "cold"

Answer 7

Bush jr. was not involved!