ABSTRACT
The subject of oil prices has long been a labyrinth that one enters only if absolutely necessary. At a meeting in Qatar in December 1976, the ministers were unable to agree on a price. During meetings at the end of 1977 and in mid-1978, Organization of the Petroleum Exporting Countries (OPEC) subsequently decided to leave the price of the marker crude at $12.70. Since the Saudis have been the ones who have taken up the slack by reducing production, they are in a strong position to dictate OPEC behavior on prices. The future of the Norwegian oil adventure will be largely determined by the combination of the cost of producing oil and gas in the North Sea and the price of the commodities on the world market. Recognizing the uncertainties of the situation, the United States government proposed in 1975 that the International Energy Agency adopt a floor price for oil.
