PREFACE xi
However, many economists are unable to explain the economics
of crude oil pricing without recourse to higher mathematics. The
result is the development of complex equations that are not only
difficult to understand but also bear little relationship to reality. In
fact, when oil prices flip-flop, explanations are invoked and justified, using the remarkable facet of 20/20 hindsight with very little
foresight or even knowledge of the workings of the industry.
This book will introduce the reader to the factors that influence
the price of crude oil insofar as crude oil economics involves a combination of several factors, not the least of which are:
1. Crude oil availability from the reservoir
2. Crude oil quality
3. Crude oil extraction
4. Crude oil quality
5. Geopolitics.
The book also includes the reader to oil classification, recovery,
and properties, which are not usually included in works related to
politics and economics but are an essential part of for understanding oil pricing and politics.
Dr. James G. Speight
Laramie, Wyoming
March 2011