, Columnist
Looking for Stranded Oil? Start With OPEC
The cartel can no longer assume its untapped reserves will grow in value.
Unwanted.
Photographer: Peter Parks/AFP/Getty Images
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The oil market is weird.
Imagine two widget-makers, WidgetKing and Standard Widgets. Their product is generic as can be. Standard Widgets, however, is lucky enough to have its factory built next to a major port and rail terminal, keeping distribution costs low, while WidgetKing’s founder loved the mountains and thought trains would never catch on. Thus, Standard Widgets can undercut its rival on price every time. We all know who ends up controlling the widget market and who goes belly-up.