What are the options for non-OPEC producing countries?

Abstract

This paper discuss medium- and long term strategies for non-OPEC oil producing countries highly dependent on petroleum revenues. First a picture of the international oil market of the 1990s is outlined. Then we look at the differences among oil producers and argue that some countries may have common interests in cooperation with OPEC in order to stabilize or increase prices. This may be interpreted as an insurance against a breakdown of OPEC. The benefits of cooperation from a Norwegian point of view is calculated. Finally, we discuss whether a cooperative strategy can be sustained.