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Show THE VOICE OF BUSINESS is OPEC over ca borrel? By Richard L. Lesher, President Chamber of Commerce of the United States If you're like most Americans, then I doubt you shed too many tears over OPEC's inability to reach agreement on a production and pricing strategy at its recent conference in Geneva. For over a decade, Americans have watched in anger and frustration as laughing OPEC oil ministers have emerged from meeting after meeting to make the now familiar announcementa an-nouncementa new price increase or production cutback. Since 1973, the price of a barrel of OPEC oil has skyrocketed from about $3.00 to anywhere from about $30 to $40 today. But this meeting was different. This time grim-faced ministers emerged to announce that they were freezing the price of their oil for the rest of the year and perhaps more significantly, that they had failed to agree on how to manipulate oil prices and supplies in future. Why? According to one oil minister, "the lesson we are learning is that we are compelled to respond to market forces." Those market forces include a world oil glut in which supply exceeds demand by some two million barrels per day. Eager to score points with the West for arms and other concessions, Saudi Arabia, which accounts for 40 percent of OPEC's output, has been quick to claim credit for the surplus. But let's not give the Saudis all the credit. American consumers and energy businesses deserve a pat on the back too. In the first three months of 1981, Americans consumed 5.2 percent less oil than we did last year. Oil imports have dropped even faster by 18 percent in the first quarter thanks to greater production of domestic energy brought about, in part, by President Reagan's decontrol policy. Dissension among its members, a two million barrel per day world oil glut, and a new resolve by the United States and other oil-consuming nations to conserve and produce more energy are these the ingredients of an impending im-pending OPEC breakup? Do we finally have the world's longest-lived cartel over a barrel? Oh, how I would love to be able to draw that conclusion ! But I can't OPEC held its first conference in 1960, but contacts between countries that eventually formed the cartel began as early as 1949. In other -words, it took OPEC some30years (along with plenty: of "cooperation" from the consumers-and consumers-and governments of the WestUo reach thezenity of its influence over the world economy; it is likely to take just as long before we finally free ourselves from its yoke. The worst mistake we could make now is to become complacent-complacent complacent-complacent about the need to conserve and produce more energy domestically. OPEC still accounts for at least 35 percent of our total oil-consumption, oil-consumption, and yet another upheaval or change of heart in any one of thos--unstable countries would bring anj delusions of overnight energy in ' dependence crashing down around us-; Motorists, homeowners, businesset and yes, the government, must all step up their conservation efforts. Bu-conservation Bu-conservation alone is not enough. Wt -must strip away the many roadblockf, inherent in federal laws, regulation and tax codes so that the private energ f industries can expand convention' energy supplies and increase tb , development of new sources of energy ' The open dissension which wa. evident at the recent OPEC conference '. and the subsequent freeze on OPEC oi , prices, are encouraging development! But Americans would do well to recal--that about four years ago, som "I analysts were ready to declare the j that oil prices had reached their pea .. and that the breakup of OPEC wa . imminent. After all, they supposed, v... could always depend on our friend, th.v: Shah of Iran, couldn't we? We all know the sorry end to thi . fairy tale. The Shah is gone and o prices have doubled again. r The road to energy independence wi , be long and covered with potholes. If w conclude now that our battle wit:;-OPEC wit:;-OPEC has already been won and, at : cordingly, relax our conservation at: production efforts, then before we knov , it, we will all be standing aroua-. aroua-. talking about what went wrong in r, line at the local gas station! t; |