1. Case Study in Competitive Open Markets The World Oil Market

2. Crude Oil Prices $/barrel Nominal $ Inflation-adjusted 2011 US$ 2011

3. Supply: Crude Oil Production 000s barrels/day

4. $/barrel (000s of barrels/day) 56,000 64,000 0 30 20 Supply 1979 Demand 1979 Change in World Oil Price 1979 -1980 Supply 1980

5. SUPPLY: Crude Oil Production, OPEC Countries 31,000 23,000

6. SUPPLY: Crude Oil Production, Non OPEC Countries

7. Estimating Demand Elasticity for Oil 1979-80 Year 1979 1980 Price $/barrel $20 $30 Quantity Barrels/day (millions) 64 56

8. Recent Drastic Movements in World Oil Prices

11. Historical world oil prices and production http://www.eia.gov/petroleum/reports.cfm?t=66 http://www.wtrg.com/prices.htm Recent world oil prices: http://www.nasdaq.com/markets/crude-oil.aspx?timeframe=8y Cartoons: Reprinted by paid license permission from CagleCartoons www.caglecartoons.comwww.caglecartoons.com Cartoonist: Tab, The Calgary Sun, 2/14/2005 Cartoonist: John Cole, The Scranton Times-Tribune, 12/19/2014 Reprinted with license permission from CagleCartoons References