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OPEC’s Unyielding Grasp

OPEC’s Unyielding Grasp. A hole dug too deep to climb out. By: Seth Bornstein. About OPEC. O.P.E.C.-- Organization of the Petroleum Exporting Countries September 10-14, 1960- Baghdad, Iran 12 countries- Intergovernmental Unify/regulate petroleum producers Regular supply of oil

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OPEC’s Unyielding Grasp

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  1. OPEC’s Unyielding Grasp A hole dug too deep to climb out By: Seth Bornstein

  2. AboutOPEC • O.P.E.C.-- Organization of the Petroleum Exporting Countries • September 10-14, 1960- Baghdad, Iran • 12 countries- Intergovernmental • Unify/regulate petroleum producers • Regular supply of oil • Prices- Control/Change

  3. OPEC Oil Production 29.8 million barrels per day 44% world’s oil production 79% world’s oil reserves Saudi Arabia- most- 250 Gbs 1980- 400 Gbs 2009- 1000 Gbs (1,000,000,000,000 barrels)

  4. U.S. Consumption • Most of all countries • Transportation= 2/3 oil consumption • 40% U.S. yearly energy=petroleum • Over half- OPEC • Problems

  5. Oil Prices • Rising • Affect many- cars • Inflation • Extremely volatile • Prices rise—weather/conflict/wars • Production drop= prices rise-- High shipping costs

  6. U.S. Problems- Reliance • At member countries mercy • M.E. events- hurt US economy (Arab Oil Embargo) • War threat- pull out…. • Muslim control- views/religion/Israel • Conflict today

  7. U.S. Problems- Deficit • More and more expensive • More and more investing • $300 billion per year • $42 billion deficit • Rising- more spending

  8. U.S. Problems- Pollution • Petroleum= 1 of largest pollutants • Contain carbon dioxide/nitrogen • Greenhouse gases- global warming • Fossil fuels- cars • Concentrated massively in cities

  9. U.S.– Problem Solving • Strategic Petroleum Reserve- 707 million barrels • 60 day survival • Hybrids- • Electric • Less pollution

  10. U.S. Alternatives:Ethanol • 60% cleaner than petroleum • 50¢ per barrel • Ethanol mixtures- E10 • 364 million barrels reduce • Break dependence • OPEC crash-15 years • Jobs- not overseas

  11. Ethanol Prevention • Tax on synthetic oil (ethanol) • Convert to ethanol-- • Jobs lost/Conflict threat • M.E.- live in desert again • Gov. doesn't want problems • No motivation

  12. Ethanol Cons • More energy produce-provide • 11 acres corn= 1 year fuel for a car • Feed 7 people for year • Damage food production- • More corn than food production • All cars in U.S. ethanol= 97% of U.S. land

  13. Other Alternatives • Arctic National Wildlife Refuge, Alaska: • 20 million acres • Sits on oil- 7 billion barrels • Tar Sands: Canada • Problems with each… • Companies- do nothing- think something will be discovered • Government- say/don’t do Arctic National Wildlife Refuge (ANWR)

  14. Sources Chazan, Guy. "Oil Prices Surge on Fears Egypt Unrest May Hurt Supply - WSJ.com." Business News & Financial News - The Wall Street Journal - Wsj.com. 1 Feb. 2011. Web. 23 Feb. 2011. <http://online.wsj.com/article/SB10001424052748703439504576115512535632064.html>. Dye, Lee. "US: Foreign Oil Dependency: Stuck Between a Rock and Hard Place." Energy Bulletin. ABCnews.com, 27 July 2004. Web. 3 Mar. 2011. <http://www.energybulletin.net/node/1253>. "HowStuffWorks "OPEC and Global Gas Prices"" Howstuffworks "Auto " Web. 1 Mar. 2011. <http://auto.howstuffworks.com/fuel-efficiency/fuel-consumption/gas-price3.htm>. McNinch, Steven R. "U.S. Ethanol Can Replace OPEC Oil Immediately » Growth Energy." Growth Energy. Longmont Times Cell, 17 Aug. 2010. Web. 3 Mar. 2011. <http://www.growthenergy.org/news-media-center/ethanol-in-the-news/us-ethanol-can-replace-opec-oil-immediately/>. "OPEC : Brief History." OPEC : Home. Web. 23 Mar. 2011. <http://www.opec.org/opec_web/en/about_us/24.htm>. "Story - Farm Futures." Farm Futures - Home. 9 Mar. 2011. Web. 10 Mar. 2011. <http://www.farmfutures.com/story.aspx/tap/us/ethanol/supply/is/former/opec/officials/advice.htm>.

  15. Sources "Allah vs. the Price of Gas." Hubpages. Web. 1 Apr. 2011. <http://hubpages.com/hub/Allah-vs-Gas>. Energy, Growth. "On OPEC's 50th Anniversary, U.S. Ethanol Industry Calls on Congress and Consumers to Help Retire the Cartel | Growth Energy." Renewable Energy World - Renewable Energy News, Jobs, Events, Companies, and More. 14 Sept. 2010. Web. 3 Mar. 2011. <http://www.renewableenergyworld.com/rea/partner/growth-energy/news/article/2010/09/on-opecs-50th-anniversary-u-s-ethanol-industry-calls-on-congress-and-consumers-to-help-retire-the-cartel>. "OPEC : Setting the Record Straight over Prices." OPEC : Home. Web. 2 Mar. 2011. <http://www.opec.org/opec_web/en/press_room/1990.htm>. "OPEC (multinational Organization) -- Britannica Online Encyclopedia." Encyclopedia - Britannica Online Encyclopedia. Web. 27 Feb. 2011. <http://www.britannica.com/EBchecked/topic/454413/OPEC>. "Petroleum - Water, Effects, Environmental, Disasters, Pollutants, United States, History, Causes, Impact, EPA, Soil, Chemicals, Industrial, Liquid, Wells, Toxic, World, Human, Power." Pollution Issues. Web. 27 Feb. 2011. <http://www.pollutionissues.com/Na-Ph/Petroleum.html>.

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