Kevin's Cards about OPEC Flashcards
What does OPEC stand for
The Organization of Petroleum Exporting Countries
OPEC Definition
an intergovernmental organization currently made up of 12 oil exporting countries that work together to coordinate their Petroleum polices.
When was it launched officially
In 1960
Why was it formed
Was formed in response to activities and practices of 7 large international oil companies ( IOCs ) known as the 7 sisters. The activities of these IOCs were often detrimental to the growth and development of the oil producing host countries, whose natural resources they exploited.
What was the first move or step that made OPEC happen?
The first move can be tracked back to 1949, when Venezuela approached 4 other oil-producing developing countries- Iran, Iraq, Kuwait, And Saudi Arabia - to suggest they explore avenues for regular and closer cooperation on oil matters
Intergovernmental Organization
A group made up of several different countries
How can a Country become apart of OPEC
OPEC membership is open to any country that exports crude oil and which shares the ideals of the organization.
How does OPEC help communities
OPEC member countries have found ways to help poor countries with their oil supply. Much of this has been through individual countries making donations and aid available through agreements.
What is the OPECs most important job
1 of OPECs important jobs are to make sure oil markets remain stable.
Current Members in Africa
Algeria, Angola, Equatorial Guinea, Gabon, Libya, Nigeria, and Republic of Congo
Current Members in the Middle East
Iran, Iraq, Kuwait, Saudi Arabia, UAE, Qatar
South America
Ecuador and Venezuela
The good of OPEC
For decades OPEC members have found a way to help poorer countries with oil supply
How Does OPEC help the Economy
OPEC plays a major role in the determination of oil prices and production of oil in the world market. Since its creation in the early 1960s, OPEC’s ability to determine oil prices and production has enabled oil, a non-renewable energy source, to last more than expected. This helps the entire world economically.
The bad side of OPEC
Saudi Arabia, the powerful and single largest oil exporter, likes to convince other group members through intimidation to cut production, so that Saudi Arabia can then make more money off their own oil and charge more for it (personal gain). This forces other OPEC members to reduce their exports, which means they make less money.
