Why Are Countries Abandoning OPEC?

I wasn't expecting a Ryan Grimm cameo lol.

Love the precipitous use of the word ‘cartel.’

(5:07) Literally me. My hometown used to build those.

Great video mate, however 5:45 Crimea is part of Ukraine, not russia

* harmonica *
"Come gather 'round people
Wherever you roam
And admit that the waters
Around you have grown
And accept it that soon
You'll be drenched to the bone
If your time to you is worth savin'
And you better start swimmin'
Or you'll sink like a stone
For the times they are a-changin'"

6:49 I just love how 4 > 4.2 on the graph 😂

If I recall correctly, one additional reason OPEC was established was to reduce or limit the massive oil price swings that occurred early in the oil industry. This was especially evident in the USA where there were multiple boom-bust cycles in the late 1800's and early 20th century. As a result of this over-production and then bust (field shut in/abaonment) some oil fields were 'damaged' and significant volumes of oil were left behind. As I understand, the primary cause of the overproduction was because there was minimal perceived economic incentive to produce the oil gradually (time-value of money and delayed revenue etc.) but also because we had a very rudimentary undestanding of reservoir fluid dynamics at the time, hence we didn't understand the value of that 'lost' oil.

Over time, technology and our understanding of these reservoirs has improved and some of these volumes have again become economically viable to produce through scondary recovery techniques, such as surfactant flooding, WAG, and horizontal drilling, not to mention better seismic data, processing and analysis to assist the whole enterprise. We do know better and good oilfield practice is generally followed by t

As a Nigerian, I welcome this development. OPEC has just become another leeching cartel that serves to undermine market competition and improvement. Plus, doesn't help that some members (mainly the Arabs) decided to start using it for ideological geopolitical posturing🫩 I am surprised it has lasted this long.

3:50 Small typo on graph: That was supposed to be "2018", not "2028"

3:47 there is a typo on the year 2018. It reads 2028

In the last 6 years Ecuador, Qatar Angola and now UAE have left. Likely next are Venezuela and Kazakhstan

Lifting cost for Shale oil is typically around $25 to $35 / barrel. Still well above that of Saudi, but no longer $50.

Cartels never last, OPEC has lasted longer than most....

13:09 "for everybody else in the global economy, this is overwhelmingly a good thing."

this is the bottom line. OPEC is an anti-competitive cartel, gouging the rest of the world. they've gotten insanely rich at all of our expense. let them make their money legitimately...enough with the mafia tactics!

Game Theory in action!

One thing that wasn't mentioned is that OPEC also faces a first out the door problem. The first ones to leave OPEC are the ones who benefit the most, assuming that it works out for them. first one to leave incurs the most risk but also stands to gain the most. this is probably the primary driver behind fears of everyone leaving all at once because one member left.

There's a reason why individual countries ban cartels and price fixing within their own borders....

I've said this before, but I always respect how you format your videos by giving a summary, then breaking down into chapters what one can expect to learn watching the video. It's a refreshing reminder of reading well made academic papers.

I refuse to pay for OPEC+ if they have ads throughout the product.

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