OPEC and the United States

Paper Summary:

This paper discusses and analyzes the topic of the Organization of Petroleum Exporting Countries (OPEC). Specifically, it examines how the United States deals with OPEC and oil prices. The paper also explores how the United States has failed to create a viable energy policy that will allow the country not to depend on OPEC's control of the oil market. The paper contends that the United States heavily depends on oil from the OPEC nations, which is one reason that the country's oil prices have risen so dramatically in the past year or so.

From the Paper:

"OPEC was formed in 1960 by the oil-producing countries primarily in the Middle East as a reaction to fluctuating oil prices by oil manufacturers, which were predominantly owned and operated by American and British firms. The first group of nations to initiate and form the consortium were Venezuela, Saudi Arabia, Kuwait, Iraq and Iran (Reuda). Forming OPEC was a reaction to foreign oil interests, and they felt they would have more control over the development and management of their own oil reserves. As time went on, membership grew to include Algeria, Ecuador, Gabon, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. However, Ecuador and Gabon suspended their memberships; Ecuador in 1992 and Gabon in 1994. Headquartered in Vienna, Austria, the group has historically been dominated by Saudi Arabia, because it has the largest oil reserves of any of the member nations. OPEC has dominated world oil prices almost since its inception, and has caused inflation in oil-importing countries like the United States."

More papers on OPEC and the United States:

• Essay # 56351 : "The United States Oil and Gas Industry"
• Research Paper # 49091 : "Gasoline Prices and the Economy"
• Essay # 72091 : "OPEC"

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