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Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world

Thijs Van de Graaf(UGent)
(2017)ENERGY RESEARCH & SOCIAL SCIENCE.23.p.182-188
Author
Organization
Abstract
The Organization of the Petroleum-Exporting Countries (OPEC) faces a perfect storm. It is squeezed between the revolution in unconventionals, which has increased global supply of hydrocarbons and lowered their price, and the prospect of a global peak in oil demand, stemming from climate policies and the falling costs of alternative energy technologies. In the face of these challenges, media commentators have declared the death of OPEC as a cartel. This perspective argues that the claims about OPEC’s demise are misguided for four reasons: (1) OPEC never acted as a cartel, let alone a powerful one; (2) thanks to its cheap production costs, OPEC’s oil will remain competitive in a low-cost environment; (3) the group has always proved to be flexible; and (4) OPEC is still attractive to its member states, most notably as a source of prestige, as is illustrated by the recent re-entries of Indonesia and Gabon. That said, over the longer term OPEC will inevitably need to adapt to a changing external environment. A likely possibility would be for the club to gradually morph from an output-setting cartel into a forum for deliberation and information-sharing.
Keywords
Paris Climate Agreement,Stranded assets,Organization of the Petroleum-Exporting Countries (OPEC),Oil demand peak

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Citation

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MLA
Van de Graaf, Thijs. “Is OPEC Dead? Oil Exporters, the Paris Agreement and the Transition to a Post-Carbon World.”ENERGY RESEARCH & SOCIAL SCIENCE, vol. 23, 2017, pp. 182–88, doi:10.1016/j.erss.2016.10.005.
APA
Van de Graaf, T. (2017). Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world.ENERGY RESEARCH & SOCIAL SCIENCE,23, 182–188. https://doi.org/10.1016/j.erss.2016.10.005
Chicago author-date
Van de Graaf, Thijs. 2017. “Is OPEC Dead? Oil Exporters, the Paris Agreement and the Transition to a Post-Carbon World.”ENERGY RESEARCH & SOCIAL SCIENCE 23: 182–88. https://doi.org/10.1016/j.erss.2016.10.005.
Chicago author-date (all authors)
Van de Graaf, Thijs. 2017. “Is OPEC Dead? Oil Exporters, the Paris Agreement and the Transition to a Post-Carbon World.”ENERGY RESEARCH & SOCIAL SCIENCE 23: 182–188. doi:10.1016/j.erss.2016.10.005.
Vancouver
1.
Van de Graaf T. Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world. ENERGY RESEARCH & SOCIAL SCIENCE. 2017;23:182–8.
IEEE
[1]
T. Van de Graaf, “Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world,”ENERGY RESEARCH & SOCIAL SCIENCE, vol. 23, pp. 182–188, 2017.
@article{8137111,  abstract     = {{The Organization of the Petroleum-Exporting Countries (OPEC) faces a perfect storm. It is squeezed between the revolution in unconventionals, which has increased global supply of hydrocarbons and lowered their price, and the prospect of a global peak in oil demand, stemming from climate policies and the falling costs of alternative energy technologies. In the face of these challenges, media commentators have declared the death of OPEC as a cartel. This perspective argues that the claims about OPEC’s demise are misguided for four reasons: (1) OPEC never acted as a cartel, let alone a powerful one; (2) thanks to its cheap production costs, OPEC’s oil will remain competitive in a low-cost environment; (3) the group has always proved to be flexible; and (4) OPEC is still attractive to its member states, most notably as a source of prestige, as is illustrated by the recent re-entries of Indonesia and Gabon. That said, over the longer term OPEC will inevitably need to adapt to a changing external environment. A likely possibility would be for the club to gradually morph from an output-setting cartel into a forum for deliberation and information-sharing.}},  author       = {{Van de Graaf, Thijs}},  issn         = {{2214-6296}},  journal      = {{ENERGY RESEARCH & SOCIAL SCIENCE}},  keywords     = {{Paris Climate Agreement,Stranded assets,Organization of the Petroleum-Exporting Countries (OPEC),Oil demand peak}},  language     = {{eng}},  pages        = {{182--188}},  title        = {{Is OPEC dead? Oil exporters, the Paris agreement and the transition to a post-carbon world}},  url          = {{http://doi.org/10.1016/j.erss.2016.10.005}},  volume       = {{23}},  year         = {{2017}},}
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Web of Science
Times cited:
Subject
Law and Political Science
Year
Publication type
Journal Article (Original Article)
Publication status
published
Journal title
ENERGY RESEARCH & SOCIAL SCIENCE
Energy Res. Soc. Sci.
ISSN
2214-6296
2214-6326
Volume
23
Pages
182 - 188
DOI
10.1016/j.erss.2016.10.005
Language
English
UGent publication?
yes
UGent classification
A1
Web of Science type
Article
Web of Science id
000396395200016
JCR category
ENVIRONMENTAL STUDIES
JCR impact factor
3.815 (2017)
JCR rank
16/108 (2017)
JCR quartile
1 (2017)
Copyright statement
No license (in copyright)
id
8137111
Handle
http://hdl.handle.net/1854/LU-8137111
Date created
2016-11-09 16:43:36
Date last changed
2024-07-09 12:13:55

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