Opec Organization Of The Petroleum Exporting Countries Essay

Energy Crisis (1970’s) states that the crisis officially began when the “Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel.” They did

They formed the Organization of the Petroleum Exporting Countries, or OPEC. Since the OPEC was instated to protect the interests of oil producers, it could be seen as an example of regional integration. The OPEC is widely considered, throughout the world, as a cartel. This would be an intellectual misconception. The concept of cartel would consider oligarchies limiting competition and monopolies increasing prices. Oppositely, many international oil producers are not members of the OPEC. These non-members saw a fourfold increase in the oil prices, during the 1973 oil embargo. In A history of the modern Middle East, William L. Cleveland and Martin Bunton stated that the immediate objective of the OPEC was “to utilize the collective bargaining power of its member states to pressure the Western oil companies to increase oil prices.”. However, the birth of the OPEC did not occur, overnight. In 1947, the Venezuelan and Iranian delegations held talks in Washington, to coordinate their oil policies. In OPEC: Past and Present, Abdul Amir Q. Kubbah stated that the Arab league had a project of creating an “association of Arab oil-producing countries.”, since 1945. The first OPEC-type grouping occurred in 1953, when Iraqi and Saudi delegates joined forces. The agreement between these two states was the first to involve cooperation from both governments. The Arab League held a summit in Cairo, in 1959. During that summit, “views have been exchanged concerning the

The Organisation of the Petroleum Exporting Countries (OPEC) aims to coordinate and unify the petroleum policies of its Member Countries and ensure the

In 1973, an oil crisis began when the members of the OAPEC (consisting of the Arab members of OPEC, plus Egypt, Syria and Tunisia) proclaimed an oil embargo in response to the United States decision to resupply the Israeli military during the Yom Kippur War. The embargo happened when 85% of American workers had to drive to work every day. President

The Middle East is one of the birthplaces of human kind’s civilization. Since the Ancient Egypt, Sumer, the Arab Empire, Turkey Empire, or even to present day, the Middle East has always been a valuable strategic point for not only because of its geographic location but also it full of petroleum and nature gas. According the OPEC (Organization of the Petroleum Exporting Countries) that 66% of the global oil reserves are in the Middle East and only 6% in North America, this makes a lot of powerful countries want to share a pieces of the Middle East, Stephen mentions “Much of the world 's oil wealth exists along the Persian Gulf, with particularly large reserves in Saudi Arabia, Kuwait

Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.

The embargo of oil shipments to the United States by the Organization of the Petroleum Exporting Countries (OPEC) resulted in a widespread national energy crisis which, to some degree, created the economic downturn.

Why should we worry about OPEC? Why do we need to get away from foreign oil? OPEC controls the oil prices on the world market. They can raise oil prices to benefit their bottom line. Last November crude oil prices went up 48 cents because Nigerian militants attacked a pipeline affecting oil production (“Oil Prices Find Floor”, n.d). It 's hard on Americans when the oil prices rise and it would be even harder if our foreign oil producers decided to stop trade with us. Not only would we be in danger of not being able to satisfy our wants, but our basic needs such as driving to work could be in danger. That is why this issue is a current geopolitical challenge for the United States.

on this years by providing the oil gap cause for the OPEC embargo to those

Oil has been a coveted resource since the early twentieth century. Global oil powers are a major component of the world economy. For this reason predominant oil producers have experienced numerous power struggles and violent outbreaks over the years. Due to the newfound independence of many Middle Eastern countries in the 1960s, many rich oil fields were accessed for the first time, providing new competitors for the hegemonic American "Seven Sisters." Tensions rose between the United States and many Middle Eastern countries not only as a result of competition, but also due to several oil-related wars that broke out in the region. The years that encompassed the strained relationship between the U.S. and OPEC-involved countries proved to be a

Aramco, an oil company based out of Saudi Arabia, developed the idea that, “if you produce a lot of oil at once, price goes down and more workers get paid which leads to less profit”. Aramco then realized they needed to step away from the free-market and start to operate through a monopolistic sense. Mohammad Massadegh, the first democratic leader of Iran, wanted oil profits. Mohammad planned to use though profits efficiently through helping Iran. Retaining oil profits for Iran put their economy in much better shape. After Mohammad, Reza Palavi stepped in and was eventually overthrown due to reinstating profits for oil. On the other side, Iraq and Saudi Arabia nationalized oil in 1972 which eventually lead to Saudi Arabia taking full control over Aramco. OPEC, created in 1960 to generate tax revenues and “even the playing field”, goal was to build help stabilize world oil prices. In hindsight the Saudi connection was built on indirect and economic imperialism.

Saudi Arabia has an economy that is largely dependent on oil, with the government maintaining the biggest control over the country 's significant economic activities. Saudi Arabia owns about 16% of the global oil reserves and is the number one exporter of oil (Saudi Arabia, 2013). In addition, the Kingdom of Saudi Arabia was instrumental in the formation of the OPEC (Organization of the Petroleum Exporting Countries) group, which initially comprised Iraq, Venezuela, Iran, Kuwait and Venezuela (Energy indicators, 2004). Currently, the petroleum industry constitutes about 80% of the country 's budgetary incomes; about 40% of the country 's GDP and 87% of Saudi 's export earnings. Agriculture, in addition to petroleum products, has been a major contributor to the kingdom’s economy since 1970s (Saudi Arabia, 2013). The country has been able to produce enough agricultural products for their consumption as well as surplus for exportation to the GCC member countries.

The oil industry can not be discussed without mentioning the name John D. Rockefeller. Rockefeller changed the business of oil distribution. In the 19th century Rockefeller began his humble beginnings with a small investment, along with two other partners, in the oil refining business. Eventually Rockefeller upset at the direction of the company bought out his partners. He was now buying into refining and developing kerosene and other petroleum-based products. He later named this company The Standard Oil Company which by 1872 nearly owned all the oil refineries in Cleveland. In 1882, Rockefeller took all his holdings and merged them into the Standard Oil Trust. Through smart business

In December 2014, OPEC was ranked third on Lloyd 's list of "the top 100 most influential people in the shipping industry.” It is important to understand the mission of OPEC is to better understand its influence and impacts on the world. According to the OPEC website, The mission statement of OPEC is as follows: In accordance with its Statute, the mission of the Organization of the Petroleum Exporting Countries (OPEC) is to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry. The 13

OPEC is abbreviation used for the Organization of Petroleum Exporting Countries. It is an intergovernmental and permanent organization which came into force in Baghdad in September 1960. Initially formed by the Five Founding members – Iran, Iraq, Kuwait, Saudi Arabia and, Venezuela, it was later joined by 9 other countries which are Qatar, Libya, UAE, Algeria, Nigeria, Angola, Gabon, Indonesia and Ecuador. The organization’s headquarters were first located in Geneva, Switzerland for the first five years but were later moved to Vienna, Austria in 1965.