The Politics of Oil-Producer Cooperation

426 Pages·2001·43.12 MB·English

by  Dag Harald Claes, Dag Harald Claes ARENA: Advanced Research on the Europeanisation of the Nation-State

The Politics of
Oil-Producer Cooperation
The Political Economy of Global Interdependence
Thomas D. Willeft, Series Editor
The Politics of Oil-Prodltcer Cooperation, Dag Harald Claes
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The PO
Oil-Producer Cooperation
Dag Harald Claes
'/ A Member of the Perseus Rook Croup
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Library of Ccmgress Cataloghg-in-Publication Data
CIaes, Dag Harald
The politics of oil-producer cooperationlkg HaraId CIaes.
p. cm,----jn-rep olitical ecclnomy of global interdependence)
fr-rcludab ibliograpl-rical references and index,
BBN 0-8133-6M3-X (#k.)
I, Petrt~leurni ndt~strya nd tradelnternatic~nalc ooperation-Pc~liticala spects. I.
Title,
B, Series
The paper ttsed in this publication meets the requirements of the Amex-ican National Stan-
dard far Pemanence c ~ Pf aper for Prir-rted Library Materials 239-48-1984.
Figure 2.2 T k R ed Line, on page 55, is reprinted with the permission oi
S i l n m & Muster from The Prize: The Epic Q~lesffi r Oil, Mo2zc.y 6. Power
by Da~ieYl ergin. Copyright O 1991,1992 by DmieX Yergk.
Figure 2.1 5: E e ~ d sirz taxatio~zo f yeholeurn prodzrcfs, on page 75, is
reprinted with the permissio~of~ t he PR & Infomat.iom Departxnent. of Ihe
OIYC Secretariat from Shokri Ghanem: "The role and impact of 012~~'s
market share" in OPEC Bulletin vol. XXIX, no G., 'June 1998,
Figure 7.10: Cvzide oil prices, ncfz ial alzd slkccessive Ivl fcr~zationalE nergy
Workshop polls, cm page 27'4, is =printed with permission of iwr Press
.from Tfie C e ~ i eou t of the Bottle: Wodd Oil Since 1970 by Rlforris A. Add-
man. Copyright @ 1995 by the Massachusetts Enstitute of Technology
Contents
List of Tnbles nad Figrrrres x i
Acronyms X V
AL.kr?uwledgrn~~zts xvii
1.1 a3 as hternational Politics, 2
1.2 Znternational Cooperation, 3
1 hternational Political Econamy, 6
1.4 The Multilevel Approach, 8
1.5 Relaticms to Economic n e o ~2,0
1 A Nate on Sources, 27
Notes, 31
2 Market Context
2.1 Market Strucbre, 36
22 Market Power, 44
2.3 The Era of the International Oil Companies, 51
2.4 'f'he OI~ECE ra, 60
2 5 Structural Effects af the Price hcreases, 70
2.6 New Market-Power Relations, 77
2.7 Conclusion, 88
Notes, 91
3 f"olit;icalC ontext
3.1 Politiciaation, 96
3.2 a3 m d Scrcurity, 99
3.3 'f'he Irm-kaq War, 101
3.4 The Iraq-Kuwait War, 107
3.5 hternal nreats, 114
3.6 Politicai Cooperaticm Between the Gulf States, 121
3.7 Conclusion, 126
Notes, 127
Con telz ts
4.0 OPEC as m Xnternatio~~Oalr ganization 131
4.1 fnstitutimal Approaches, 131
4.2 'I'he Organfzational Stntcturl, of OPEC, 142
4.3 hstitnxtio~~Faml ~ctionso f OPEC1, 44
4.4 Conclusion, 164
Notes, 166
5 Price and Produc.tion Policy of OPEC Countries
5.1 'The Redundant Cartel:
OPEC Price Policy; 1WI-1981,172
5.2 The Effective Cartel:
a9ecQ uota Policy, 1982-1985,182
5.3 The Defeded Cartel:
OPEC Market-Share Policy, 198611998, 188
Notes, 198
6 Country Case 1: Saudi Arabia-A Hegemcmic Power
6.1 A Dynamic Approach to Hegeznony; 294
6.2 The Making of a Hegemon, 207
6.3 'The fncapable Hegemcm, 1973-1981,218
6.4 The Be~~evoleHnte gemon: Swing Producer,
1982-11985,225
6.5 'The Coerilive Hegemon, 1986-1996,231
6.6 The Mixed Strategy; 1999-2080,233
6 . The Relative Power of the Hegemon, 234
Notes, 237
7 OPECA: . Successful Cartel?
7.1 Conditions for Cartels, 240
7.2 Cartel Behavior, 243
7.3 OPEC as a Price-Maker, 247
7.4 Quota Compliance, 253
7.5 The Profits of Cooperation, 269
7.6 A Cartel or a Success?, 273
Notes, 278
8 Extending the Cooperation:
OPEC and the Non-Op~cP roducers
8.11 The N o n - o ~ ~Prco ducers in General, 282
8.2 The OPEC-NOP~-C?BI~arEgCah ing, 289
8.3 E ~ l a i n i n gN on-OPECC ooperative Behavicrr, 292
Notes, 295
CLHteZn t s ix
9 Country Case 12: Norway-From Free-Riding to Cooperation 297
9.1 Domestic Factors in International Relations, 299
9.2 'The Bqaining Process, 301
9.3 The Bargaining Game Between OPEC and Norway; 316
9.4 Explaining the NOrwegian Policy Chmge, 326
9.5 Conclusion, 346
Notes, 348
10 Oil-Producer Cooperation and the Shtdy of
hternational Political Economy
40.1 Empirical Findings, 353
10.2 The Explanato~M o&l Revisited, 361
18.3 The Value sl:C ombinhg
Political Science and Economics, 366
10.4 neoretical Implications, 371
Notes, 378