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OPEC

OPEC. 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

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OPEC

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  1. OPEC

  2. 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

  3. 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

  4. OPEC History 1970s • OPEC became well known • Countries took control of oil company and oil pricing • Oil prices went up drastically (1973) • OPEC Fund for International Development • Organization gained three members

  5. 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

  6. 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

  7. 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.

  8. 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

  9. 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

  10. 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

  11. Pollution • Petroleum/oil products poisonous • Petroleum has sulfur & nitrogen tracings • Hydrocarbon • Petroleum/oil is one of the biggest polluters

  12. 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

  13. 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

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