WHAT IS A FAIR PRICE FOR OIL?
Dairy farmers get a price for milk that is held down by oligopsony, agreement between a small number of buyers for their product. For stability of supply, the price has to recompense investment. Oil exporting countries get a price for oil that is held down by oligopsony, agreement between major oil importing companies. For stability of supply, the price has to recompense investment and also anticipate the depletion of petroleum resources with oil supply running out. For example, a higher price could be demanded to fund diversification into agriculture. Oil has varied per barrel between $20 in 1997, $160 in 2008, and $60 today.
Is the ethical position of companies buying oil different from supermarkets buying milk? Who will provide for oil exporters to transition away from oil when it runs out?
Novel ‘$hort of Love’ is about love set in the international oil industry, with some relationship and oil supply dilemmas considered in a satirical commodity framework.
Posted on December 13, 2019, in Short of Love and tagged analysis, Cold War, Commodity economics, Competition, corruption, Economics, Emotion, Feminism, fiction, Government, Love, Love relationship, Marriage, Novel, oil exploration, Oil extraction, Petroleum industry, political, psychology, Romance, SATIRICAL FICTION, science, Short of Love. Bookmark the permalink. Comments Off on WHAT IS A FAIR PRICE FOR OIL?.