Crude Volatility: The History and the Future of Boom-Bust Oil Prices (Center on Global Energy Policy Series)

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Description

As OPEC has loosened its grip during the last ten years, the oil market has been rocked by wild price swings, the likes of which haven’t been seen for eight decades. Crafting an engrossing journey from the gushing Pennsylvania oil fields of the 1860s to today’s fraught and fractious Middle East, Crude Volatility explains how past periods of stability and volatility in oil prices lend a hand us have in mind the new boom-bust era. Oil’s notorious volatility has all the time been thought to be a virulent disease afflicting not only the oil industry but also the broader economy and geopolitical landscape; Robert McNally makes sense of how oil became so central to our world and why it’s subject to such extreme price fluctuations.

Tracing a history marked by conflict, intrigue, and extreme uncertainty, McNally shows how―even from the oil industry’s first years―wild and harmful price volatility prompted industry leaders and officials to undertake peculiar efforts to stabilize oil prices by controlling production. Herculean market interventions―first, by Rockefeller’s Standard Oil, then, by U.S. state regulators in partnership with major international oil companies, and, after all, by OPEC―succeeded to varying degrees in taming the beast. McNally, a veteran oil market and policy expert, explains the consequences of the ebbing of OPEC’s power, debunking myths and offering recommendations―including mistakes to keep away from―as we confront the unwelcome return of boom and bust oil prices.

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