Examines the effectiveness of the organization as an international regime and its impact on oil prices throughout the world through its policies.
Written in 2002; 6,417 words; 21 sources; MLA; $ 148.95
Paper Summary:
The effectiveness of the Organization of Petroleum Exporting Countries (OPEC) as an oil cartel is subjected to critical analysis and assessment during the period of 1973-1999. Issues addressed in this analysis and assessment include the identification and assessment of the political factors that influenced the determination of the (1) political dynamics of the organization, (2) the economic dynamics of OPEC, (3) the international role of the organization, and (4) structural changes in OPEC, with consideration for (a) why and how these changes occurred, (b) the effects of these changes on OPEC's functioning as a cartel, and (c) the source, internal or international, of these changes.
Introduction
OPEC: Formation, Purpose, Objectives, and Policies
Effects of OPEC Policies in the 1970s and 1980s
Crucial Factors Affecting Decisions by OPEC Member States to Disregard OPEC Production and Price Stabilization Policies
Actions by Non-OPEC Oil Exporters
Discovery of New Energy Reserves
Assessment of OPEC's Effectiveness OPEC As An International Regime
Summary and Conclusion
From the Paper:
"In its first dozen years, OPEC concentrated on gaining control by its member states of their petroleum resources from the multinational oil companies. As this goal was pursued, crude oil prices were raised gradually and at moderate levels. In 1973, however, OPEC imposed its first crude oil boycott, one result of which was a tripling of crude oil prices from 1970 price levels. Following this show of power, crude oil price increases again slowed for several years. Then, in 1979, OPEC instigated a second crude oil price/supply crisis, which resulted in, among other things, a doubling of crude oil prices from 1974 levels."
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