ABSTRACT
Oil markets everywhere are in a state of transition characterized by accelerated structural change and determined moves by the producers to integrate downstream. The immediate considerations as they related to the independent oil producers are basically tied to the volatility of prices, but over a longer period it is essential for them to look at production policies. Countries in the early stages of oil development should take a longer view of investments and lengthen rather than shorten the cycle so as to avoid the bunching of new production. Price volatility in the markets made planning and investment decisions even more difficult than usual and led to the postponement or slowing of many new exploration and production ventures. Organization of Petroleum Exporting Companies has functioned somewhat imperfectly and often indecisively by switching back and forth between emphasis on fixed prices and reliance on production controls. Consumers would place much greater reliance on abundant and varied supplies.
