Tuesday, February 21, 2012

OPEC Clarifications

Dear Gamers,

Two important clarifications for the OPEC game:

1.  Your colleague, Rodrigo Donoso, brought to my attention a critical typo in the OPEC Data sheet. The total reserves for each country is off by a factor of ten. In other words, the Saudi total reserves should be 528,000 rather than 52,800. I have now updated the spreadsheet to reflect this fact. 

In your calculations, the total reserves should not be binding unless the game lasts for a really long time. For instance, the Saudis will not run through their capacity, even if they are producing all out, in fewer than 44 turns. 

2. All production units are in 000s of barrels. Thus, if Saudi produces 12,000 in period 1 and the world oil price is $100, then it earns revenues of $1,092 million. 

Let me know if you have any additional questions. 

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