Patterns in resource consumption

Question 1

Peak oil

Answer 1

the point when maximum extraction of oil is reached, after which point the extraction of oil will reduce. Although peak oil production has been reached in some countries like the UK and the US, it is unclear whether global peak oil has been reached yet.

Question 2

OPEC

Answer 2

Organisation of Petroleum Exporting Countries - group of 12 oil-producing countries, controlling over 40% of the world’s oil supply and over 20% of the gas supply.

Question 3

Monopoly

Answer 3

any organisation, individual or company who controls enough market share to be able to influence the market place e.g. be able to reduce supply in order to increase prices.

Question 4

Cartel

Answer 4

a formal agreement among competing firms. It is a formal organisation of producers and manufacturers that agree to fix prices, marketing, and production. In the past OPEC has been accused of being a cartel.

Question 5

Corporate colonialism

Answer 5

relates to the involvement of TNCs in the practice of colonialism. TNCs can have significant power over small LEDCs. LEDCs will often fear questioning the role of TNCs because they do not want to lose investment.

Question 6

Brent crude and Light Sweet crude

Answer 6

two of the biggest classifications of oil and are used to fix prices. Brent crude is traded in London and Light Sweet Crude in New York.