Producer power failure

摘要

OPEC’s ability to exercise market power was foundedrnnot just on coordinated collective action that limitedrnsupply, but on its members’ ownership of a majorityrnof the world’s oil resources and its maintenance ofrnspare capacity. Restricting access to resourcesrnallowed it to maintain a position of market strength.rnMaintaining spare capacity acted as a disincentive tornnon-OPEC investment.