What’s So Great About the King of Resources’ Leading Provider Gwen Elledge Period 6 OPEC...

What’s So Great About the King of Resources’ Leading

Provider

Gwen ElledgePeriod 6

OPEC SCHMOPEC

What is OPEC• “Organization of Petroleum Exporting

Coutries”• Regulates exporting of oil, oil products, and

oil pricing• HQ in Vienna, Austria• Produces 40% of whole world’s oil supply• Wants high oil prices• Algeria, Angola, Ecuador, Iran, Iraq, Kuwait,

Libya, Nigeria, Qatar, Saudi Arabia, UAE, Venezuela

OPEC History 1960s

• Opened Sept. 10-14, 1960 in Baghdad, Iraq

• Started in economic and political changes

• “Seven Sisters” controlled Oil Marked before

• Countries joining OPEC control their own resources (OPEC Policy)

• After starting company ten countries joined

OPEC History 1970s

• Oil prices went up drastically (1973)• OPEC Fund for International Development• Organization gained three members

• OPEC became well known

• Countries took control of oil company and oil pricing

OPEC History 1980s

• Oil prices dropped badly• Small oil market shares

fell• Oil revenue lowers badly• Reference Basket to

help price oil• New environmental

issues become relevant

OPEC History 1990s

• Prices became more stable• Recovery while post-Soviet Union

settled• Economy and weather effected prices• Producers, consumers, OPEC, and Non-

OPEC coordinating affiliations

OPEC History 2000s

• OPEC’s pricing system made pricing better (early 2000s)

• Markets increased prices to record levels

• Prices crashed after• Made a “comprehensive long-

term strategy”• Help achieve stable markets,

environment, development.

USA vs. OPEC

• Antitrust problems• USA accusing OPEC countries, limit oil• OPEC make oil supply go up

continuously• Oil pricing issues• OPEC wanting high prices using to

advantage, USA depends on oil

US Dependency

• Country’s demand for oil increasing• Persian Gulf biggest oil production (65%)• Happenings in OPEC countries effect oil

prices• Most US oil from OPEC countries• US economy relates to OPEC oil prices• Strategic Oil Revenue-oil supply for

emergencies

Oil Alternatives

• Tar Sands-sticky substance underground in sand & rock

• Tar Sands-bad for environment• Ethanol-oil made by corn• Ethanol-would hurt our food supply• Ethanol-97% of land would be corn if

fuel was only ethanol• Both-industries lose more energy than

make

Pollution•Petroleum/oil products poisonous

•Petroleum has sulfur & nitrogen tracings

•Hydrocarbon

•Petroleum/oil is one of the biggest polluters

Problems with the US

• Oil dependency creating a disaster• Not exactly looking for different fuel

resources• Oil companies/companies invested in oil

not looking for alternatives-USA stuck in a rut

• Synthetic oil payments go in taxes-foreign oil no taxes

• Foreign fuel in favor-not giving other sources a chance

Religion vs. Oil

• Some OPEC countries are Muslim• USA worried because of Muslim faith-

just seeing beliefs as a threat• Some Muslims want to convert all

countries-all faiths need to work together-oil countries

• Oil products also in concern

Bibliography• "Allah vs. the Price of Gas." HubPages. Web. 3 Mar.

2011. <http://hubpages.com/hub/Allah-vs-Gas>. • Dye, Lee. US: Foreign Oil Dependency: Stuck Between

a Rock and a Hard Place. Web. 1 Mar. 2011. • "The Oil Drum | Middle East OPEC Reserves

Revisited." The Oil Drum | Discussions about Energy and Our Future. Web. 2 Mar. 2011. <http://www.theoildrum.com/node/7149>.

• "OPEC : Brief History." OPEC : Home. Web. 16 Feb. 2011. <http://www.opec.org/opec_web/en/about_us/24.htm>.

Bibliography• "OPEC : Setting the Record Straight over Prices."

OPEC : Home. Web. 11 Mar. 2011. <http://www.opec.org/opec_web/en/press_room/1990.htm>.

• OPEC and Gas Prices Around the World. Web. 28 Feb. 2011.

• "Petroleum - Water, Effects, Environmental, Disasters, Pollutants, United States, History, Causes, Impact, EPA, Soil, Chemicals, Industrial, Liquid, Wells, Toxic, World, Human, Power." Pollution Issues. Web. 23 Feb. 2011. <http://www.pollutionissues.com/Na-Ph/Petroleum.html>.