Oligopolistics models in oil industry: The «Seven Sisters» versus OPEP

Authors

  • Enrique Palazuelos Universidad Complutense de Madrid

DOI:

https://doi.org/10.1344/rhi.v21i48.20851

Keywords:

Oil Industry, Oligopoly, International Political Economy, Oil Trade

Abstract

The article analyzes the international oil markets dynamic from an International Political Economy approach. It compares the oligopolistic oil model being under way during 1950-1970 (Seven Sisters) and 1973-1985 (OPEC’s Governments), and answers why the first was more stable and durable than the latter. To do so we develop an analytical proposal based on the relationship between the different components of each model: on one hand, the main players, scenarios and exchange mechanisms; on the other hand, the power relations that are in place on the three phases of the oil cycle. From this analytical approach characterized the main features of both models and establishing the differences that explain their respective degrees of stability and temporal duration.

Published

2017-12-21

Issue

Section

Articles