Desarrollo energético en América Latina y la economía mundial

Professor Abbas Alnasrawi I ENER('Y AND THE DEVELOPING COliNTIUES agreements, the basis for computing company income and govern– ment revenues. The setting oí these posted prices was the exclusive prerogative of the companies; the other exclusive prerogative, it will be recalled, being the volume of output. As the Middle East low cost output began to rise and inorder to enable it to penetrate markets which have been traditionally supplied from Western Hemisphere sources or supplied by other fuels (mainly coal), Middle East posted prices were gradual1y reduced to compensate for freight cost from the Middle East to points oí destinaLÍons initially in Europe and finally in the U .S. And since the American market was protected by prora– tioning and quota systems, the differential between posted prices in these two markets continued to widen from an initial 62c/barrel in 1948 to $ 1.40¡barre! in 1961. This resulted from a series of price changes which had the effect of raising U .S. domestic prices (from $ 2.68 in 1948 to $ 3.28 in 1961) and lowering Middle East prices (from $ 2.08 in 1948 to $ 1.80 in 1961). As to the profitability of the Middle East oH concessions for the period 1948-1960, it was shown that the average per barrel revenue for governments was 67c compared with an average of $ 1.10 per barrel for the companies. Total government revenue for the same period amounted to $ 9.3 billion while the net earnings of the companies amounted to $ 14.2 billion. Of the $ 14.2 billion, the companies rein– vested $ 1.3 billion in fixed assets in the region and transferred $ 12.8 billion abroad. As to the ratio of net income to net fixed assets, it was computed to be 67% per 'Year for the same period 3 • The price reduction by the majors in 1959 and 1960 signaled to the oil-producing countries the need for the creation of a countervailing force to limit the unlimited freedom of laction which the company cartel had enjoyed for decades. The formations of the Organization oí Petroleum Exporting Countries (OPEC) in 1960 was thought to be such a force. The rise of OPEC to prominence was very slow in coming. 1t took OPEC over a decade to be able to negotiate collectively with the oH companies on the important issue of prices. The Tehran Agreement of 1971 was the outcome of those celebra– ted negotiations. Although the Tehran Agreement represented an important change in the traditional pattern of price determination, it was not until October 1973, that the oil producing countries found themselves in a position where they couId appropriate to themseIves ·C. Issawi and M. Yeganeh. The Economícs 01 Middle Eastern OH (New York, 1962) , pp. 188-189. 31