Production 1980s oil glut

1 production

1.1 non-opec

1.1.1 usa
1.1.2 north sea


1.2 opec

production

opec, non-opec, & world oil production, 1973–2004


non-opec

during 1980s, reliance on middle east production dwindled commercial exploration developed major non-opec oilfields in siberia, alaska, north sea, , gulf of mexico, , soviet union became world s largest producer of oil. smaller non-opec producers including brazil, egypt, india, malaysia, , oman doubled output between 1979 , 1985, total of 3 million barrels per day.

usa

in april 1979, jimmy carter signed executive order remove price controls petroleum products october 1981, prices wholly determined free market. ronald reagan signed executive order on january 28, 1981, enacted reform immediately, allowing free market adjust oil prices in us. ended withdrawal of old oil market , artificial scarcity, encouraging increased oil production. oil windfall profits tax lowered in august 1981 , removed in 1988, ending disincentives oil producers. additionally, trans-alaska pipeline system began pumping oil in 1977. alaskan prudhoe bay oil field entered peak production, supplying 2 million bpd of crude oil in 1988, 25 percent of u.s. oil production.

north sea

phillips petroleum discovered oil in chalk group @ ekofisk, in norwegian waters in central north sea. discoveries increased exponentially in 1970s , 1980s, , new fields developed throughout continental shelf.

opec

from 1980 1986, opec decreased oil production several times , in half, in attempt maintain oil s high prices. however, failed hold on preeminent position, , 1981, production surpassed non-opec countries. opec had seen share of world market drop less third in 1985, half during 1970s. in february 1982, boston globe reported opec s production, had peaked in 1977, @ lowest level since 1969. non-opec nations @ time supplying of west s imports.

opec s membership began have divided opinions on actions take. in september 1985, saudi arabia became fed de facto propping prices lowering own production in face of high output elsewhere in opec. in 1985, daily output around 3.5 million bpd, down around 10 million in 1981. during period, opec members supposed meet production quotas in order maintain price stability; however, many countries inflated reserves achieve higher quotas, cheated, or outright refused accord quotas. in 1985, saudis tired of behavior , decided punish undisciplined opec countries. saudis abandoned role swing producer , began producing @ full capacity, creating huge surplus angered many of colleagues in opec . high-cost oil production facilities became less or not profitable. oil prices result fell low $7 per barrel.