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