We’ve taken over the lead in petroleum product exports from Saudi Arabia. We should now Join OPEC and seek to have our representative take over as Secretary General of OPEC. Despite the fact that they have an egalitarian one-country one-vote thing going, the fact of the matter is that the biggest producer ends up with a lot of influence and sway.
OPEC is an international cartel that routinely has used anti-competitive practices of production manipulation and price fixing in order to prevent any competition in the world of petroleum extraction and distribution. Worse, because of the economic realities, the current members of OPEC routinely run over their quotas which destroys the supply and demand reality of the price. They will often overburdern the market with oil supplies but because the price is determined by the market based on how much each country commits to producing (and no more than that) and not on how much it actually produces day to day there’a lack of parity to how any other market works which is supply vs. demand. That there is pure market manipulation. Consumers therefore are not able to get a fair shake and that has dangerous knock-on effects to the global economy.
If the USA were to join OPEC we would then be able to act as both a stabilizing force by forcing sanctions upon production cap cheats, implement enforcement and monitoring technologies that add transparency regarding production to the market to restore the supply vs. demand relationship that has been tossed aside and as a force to ultimately destroy OPEC the cartel from the inside whilst leaving OPEC the industry regulator to mature into a real thing.
As soon as they have to actually play by the rules instead of just saying they do, the member nations’ loyalty to OPEC will fracture and their own individual national interests come to dominate. They will soon find that they no longer have any benefit from membership and OPEC will collapse as a cartel and come to be what it should have been from the start, more of an industry regulating body similar to AMA and the bar associations of the states.
What do you think? Should the USA join OPEC?