1. Price Volatility: The Challenge for Long-Term Planning Mr. Robert Priddle Executive Director, IEA WEC 23 October 2001

3. Final Statement from the 7th International Energy Forum in Riyadh, November 17-19, 2000: “Greater stability and transparency in the oil market to reduce price volatility is in the interests of producers and consumers.”

4. The Challenge of Price Volatility: Evidence of Price Volatility The Reasons The Effects Intervention to Curb Volatility

5. Volatility of Daily Dated Brent Prices, 1992-2001 * The standard deviation measures how widely values are dispersed from the average. Here, we took the standard deviation of daily price changes for each month.

6. Day-Ahead Electricity Prices (California Power Exchange and CAISO)

7. US Spot Gas Price

8. Reasons for Greater Volatility: Uncertain supply reliability Capacity limitations Segmented markets Competitive pressures Flawed deregulation Imperfect attempts at market management Market speculation

12. OPEC Annual Oil Revenues High prices reduce demand, increase non-OPEC and unconventional oil production and lower OPEC annual revenues