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Nick Fountain

๐Ÿ‘ค Speaker
See mentions of this person in podcasts
1658 total appearances

Appearances Over Time

Podcast Appearances

Planet Money
The secret meeting that launched OPEC

But โ€“ and this is more evidence of how intricate the answers to simple questions can be โ€“

Planet Money
The secret meeting that launched OPEC

It turns out doing anything collectively is very, very hard, especially when it has to do with money.

Planet Money
The secret meeting that launched OPEC

To hear about that, about how hard it is to keep the gang together and control how much money they get for their oil, we called up the ultimate OPEC insider, Ibrahim Almohana.

Planet Money
The secret meeting that launched OPEC

How many OPEC meetings have you been to?

Planet Money
The secret meeting that launched OPEC

Ibrahim's job for nearly four decades was advising Saudi Arabia's oil ministers.

Planet Money
The secret meeting that launched OPEC

He's been called the Saudi oil whisperer.

Planet Money
The secret meeting that launched OPEC

And part of his work was to try to move the oil market kind of on vibes by convincing oil traders and journalists to see the market the way he saw it or the way he wanted them to see it.

Planet Money
The secret meeting that launched OPEC

So if you want the price to go up, what do you do?

Planet Money
The secret meeting that launched OPEC

How do you message that?

Planet Money
The secret meeting that launched OPEC

If you want the price to go down, how do you say that?

Planet Money
The secret meeting that launched OPEC

Ibrahim keeps his tricks close to the chest.

Planet Money
The secret meeting that launched OPEC

But talking to him, I got a better understanding of why OPEC would want to control the price of oil, which listener Valerie had asked.

Planet Money
The secret meeting that launched OPEC

Now, OPEC doesn't necessarily want to keep prices high.

Planet Money
The secret meeting that launched OPEC

Too high, people might switch to more efficient cars or electric cars.

Planet Money
The secret meeting that launched OPEC

What they want to do is maximize their profits, of course, though they never really say this out loud.

Planet Money
The secret meeting that launched OPEC

What they do say is that they want to manage supply, smooth the market.

Planet Money
The secret meeting that launched OPEC

Ibrahim told me that oil, like many commodities, has these huge boom-bust cycles where the price of oil rises, companies drill more, explore more, and pump more.

Planet Money
The secret meeting that launched OPEC

And then there's too much oil and the price plummets.

Planet Money
The secret meeting that launched OPEC

And OPEC, according to Ibrahim, just wants to smooth this cycle out, make it less painful for producers and consumers.

Planet Money
The secret meeting that launched OPEC

But, of course, they want to control the price too.