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Imagine a world without OPEC.OPEC introduced production quotas in 1982, to allocate output between member countries faced with a third year of falling global oil demand and rising supply from countries like Mexico and India, which left them with as much as 12 million barrels a day of spare capacity. Saudi Arabia had already reduced its oil production by 30 percent and, just as in 2016, was no longer prepared to shoulder alone the burden of balancing oil supply and demand.Even with the group's supply management, oil prices reached a low of around $14 a barrel in 1986, according to data from BP PLC.Certainly low enough to make production uneconomic in Alaska, the Gulf of Mexico, the North Sea, Western Canada and a host of other oil provinces that have become mainstays of non-OPEC production. The group's supply management created the space for 33 billion barrels of additional non-OPEC production in the 20 years it took for them to get their supply back to the level it had been in 1978 .This would be the world without OPEC.
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