World oil

The world oil situation has changed dramatically in the five years. The average price of oil has declined from its of over $35 per barrel in early 1981 to just $27 in 1985, hem to dampen inflation and boost economic recovery in countries. The Middle East's share of world oil trade fell fro percent in 1979 to 40 percent in 1984. The Organization of Petro Exporting Countries (OPEC) is in disarray. Its official prices production quotas are regularly violated by most member coun About half of the oil traded internationally is sold on a compe international spot market."

The shift in the energy debate was sudden and largely unforese energy planners. In the late seventies, opinion was virtually mous that further oil price increases and continuing heavy pendence were inevitable. The Worldwatch Institute is dozens of research groups, private companies, and governmen expected oil prices to surpass $50 per barrel during the eig Petroleum industry studies predicted that world oil prod would reach at least 90 million barrels per day before peaki tween 1985 and 1995. Actual oil production in 1985 will averag 58 million barrels per day, down sharply from its historical E almost 66 million barrels in 1979