OPEC cartels' attempts to limit the supply of oil?

what are the Advantage and disadvantage of the OPEC cartels' attempts to limit the supply of oil?





explain in detail if possible, thanks.OPEC cartels' attempts to limit the supply of oil?
OPEC and NOPEC have been very successful and influencing the price of oil for the past 40 years. They've also had some spectacular failures too.





In the 1970s, as you may be too young to even recall, OPEC instituted an embargo against the US. This crippled our economy and had a dramatic effect on everyday life. There were fuel shortages, rationing to some extent and lots of frustration. This lasted for some months and finally ended.





However, during the 80s, there were some NOPEC (non-OPEC) oil producers who were flagrantly going against OPEC and selling oil at very, very cheap prices. This depressed the oil market and production of oil in the US shut down, leaving Texas a barren wasteland of abandoned wells since the oil was more expensive to pump than to buy on the open market.





Now, OPEC holds all of the cards. Saudi Arabia and other Gulf States control most of the world's crude and can set prices and production at their leisure.





When OPEC wants to increase prices of oil and oil products, they simply have to cut production output. That will inflate the price of oil and line their pockets. When OPEC wants to operate at maximum capacity, oil prices will start to fall.





According to some data, all OPEC wells are operating at about 80% of capacity and keeping the supply fairly tight and prices artificially higher than they should.





But with China starting to drill for oil in Africa under contract with the poor nations, China is circumventing OPEC and getting their own oil cheaper than on the open market. This will undermine OPEC if the Chinese drillers hit a massive pocket of oil.





Also, the US and Canada sit on the world's largest supply of Oil Shale and Tar Sands. Technology was too expensive to cheaply extract crude from these resources almost 40 years ago, but the technology exists now to get it out at $50 to $60 per barrel. The only obstacle is the will of US and Canada to begin production and finally get us off of OPEC oil.





So, OPEC has limited the supply of oil, but since all oil producing nations are not OPEC members, the cartel's influence only reaches so far.