CASE STUDY - OPEC As An Example Of Geopolitical Co-operation Flashcards
Name 5 countries in OPEC.
Algeria, Nigeria, Congo, Iraq, Saudi Arabia
Why is OPEC defines as a ‘cartel’?
It is a co-operative of producers attempting to control supply to the world market in order to cause huge increases in the price of oil and its derivatives.
Give an example of oil restrictions and the impact this had on markets.
Twice in the 1970s, OPEC placed restrictions on the supply of oil on the world market, causing prices to surge.
What was an unintended consequence of this action?
It prompted wealthy importing countries to develop their own reserves (in Alaska and the North Sea) which becomes more viable because of the prices rises.
Give an example of when OPEC has less control of the oil markets due to the development of new oil resources.
In 2014-2015, the fall in oil prices caused an increase in the production of US shale oil and a fall in demand for OPEC oil as economic growth in China slowed down (main importer).
Why did Ecuador leave OPEC in 2020?
They felt that the OPEC - related constraints on production deterred investors from developing their oil reserves.
What is the purpose of OPEC+?
To support the strategies of major oil producers to influence global prices.
Give two examples of countries in OPEC+.
- Russia
- Mexico
Why did oil price collapse in 2020?
- The COVID-19 pandemic
- Oil prices caused ware between Russia vs Saudi Arabia
Who has the largest proven oil reserves in OPEC?
Venezuela
Who is the top oil producer in OPEC?
Saudi Arabia
