OPEC Organization of Petroleum Exporting Countries BACKGROUND A - - PDF document

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OPEC Organization of Petroleum Exporting Countries BACKGROUND A - - PDF document

9/23/2015 OPEC Organization of Petroleum Exporting Countries BACKGROUND A permanent, intergovernmental organization created at Baghdad conference in September of 1960 to obtain higher prices for crude oil Original members are: o Iran o


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OPEC

Organization of Petroleum Exporting Countries

BACKGROUND

  • A permanent, intergovernmental organization created

at Baghdad conference in September of 1960 to obtain higher prices for crude oil

  • Original members are:
  • Iran
  • Iraq
  • Kuwait
  • Saudi Arabia
  • Venezuela
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BACKGROUND, CONT...

  • By 1973, eight other

nations joined

  • Algeria
  • Ecuador
  • Gabon
  • Indonesia
  • Libya
  • Nigeria
  • Qatar
  • United Arab

Emirates

  • Ecuador left at 1992
  • Gabon left in 1994

PARTICIPATING MEMBER NATIONS

  • Algeria
  • Angola
  • Ecuador
  • Libya
  • Nigeria
  • Qatar
  • United Arab Emirates
  • Republic of Iran
  • Iraq
  • Kuwait
  • Saudi Arabia
  • Venezuela
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PURPOSE OF ORGANIZATION

  • To control the production, exporting, and pricing of

crude oil

  • Largest Entity impacting the world’s oil supplies
  • Has the power to change prices of petroleum and

petroleum byproducts worldwide

ECONOMIC IMPACT

  • It can and does control the amount of oil produced in

any given year, and so controls the price of crude oil

  • Initially, in the 1960’s, the effort was unsuccessful
  • Prices rose in 1971, then sharply in 1973-74 in the wake
  • f the Arab-Israeli War when OPEC reduced

its production of crude oil

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CURRENT ISSUES FACED

  • Drive towards renewable energy
  • Dwindling oil supply
  • Discovery of oil outside of its members (eg: Colorado oil

boom)

  • Discover of new methods of oil extraction (eg: shale,

thus eliminating their monopoly)

WORKS CITED

  • http://www.econlib.org/library/Enc/OPEC.html
  • http://www.auto.howstuffworks.com/fuel-efficiency/fuel-

consumption/gas-price3.html

  • www.opec.org/opec_web/en/about_us/24.html
  • Benjamin Zycher, "OPEC." The Concise Encyclopedia of
  • Economics. 2008. Library of Economics and Liberty. 24

September 2014. <http://www.econlib.org/library/Enc/OPEC.html>.