This is the Cato Daily Podcast for Friday, November 24th,

2023. I'm Caleb Brown. As you take what may be another long drive

this holiday week, consider OPEC. Or rather don't consider OPEC. The

organization of petroleum exporting countries is imbued by American

politicians as having immense power to control the price of oil and throw the lives

of Americans into flux.

Gators David Kemp and Peter Van Doren in their new paper say it's vastly overstated. We spoke last week.

Peter, I can remember in the 80s hearing about this group OPEC

and they struck me as all powerful because everybody in America

cared a great deal about OPEC and what role they would play in setting prices

for oil and it seemed like there was a lot of

consternation over what OPEC might do next and that seems like their reputation is that a fair characterization of what they

represent at least to the American public? Yes I mean I was a teenager in the 70s

and the oil shock hit when I wanted to drive more. in the station the summer of 73. It was the most unpleasant experience of my life because tourists

from New Jersey would come up to Northern New York to fish in Lake Ontario. Gasoline had gone from 26.9 cents a gallon up into the 30s,

and you thought the world had ended.

There were customers spit on me and yelled at me and I worked at a Hesse gas station in a little white uniform and when you still had people pumping gas like I did.

So yeah, OPEC was thought to be all powerful and had ruined American life as we know it, revolving

around driving and gasoline.

And the implications of accepting that status that OPEC has at least in the minds of Americans

accepting that certainly has implications for US foreign policy. I mean we might not like to admit it but to the

extent that politicians believe that OPEC has a great deal of power that might influence

...