The economics of industry depends, in part, on its costs, of which a large part is represented by the cost of energy, such as gasoline or fuel oil. The cost of these oil products is affected by the price of crude oil, taxation and other factors.

The price of crude oil is influenced by the decisions taken by all oil producers, particularly the prices for which they are willing to sell and the quantities they are willing and able to supply.

If there is a shortage of oil supplies, then the price of oil will likely rise. This would have all sorts of implications for industry, such as higher transportation costs. Higher costs can lead to lower economic growth, and this will also impact on industry.

The OPEC Statute, written when OPEC was formed 1960, declares that OPEC is dedicated to providing a stable petroleum market, with steady supplies to consumers, reasonable prices and fair returns to investors in the oil industry. In pursuit of these aims, OPEC has for many years maintained a limit on the oil produced by its Member Countries. This has provided for a relatively stable oil industry, with reasonable prices. But OPEC is concerned that factors outside of its control may disrupt this stability. This includes taxation, which now constitutes the largest part of the price of oil products in some countries.