Abstract This paper evaluates the future of OPEC (Organization of PetroleumExportingCountries) as an export cartel. The author indicates the significance of OPEC as a price setting export cartel. The paper discusses the importance of OPEC to non-oil producing countries.
From the Paper "The purpose of this paper is to assess the likelihood that the Organization of Petroleum Exporting Countries OPEC will be able to function efficiently as a cartel in the future."
Abstract This paper discusses and analyzes the topic of the Organization of PetroleumExportingCountries (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."
Abstract The Organization of PetroleumExportingCountries (OPEC) was founded in 1960 as an intergovernmental organization with five oil producing and exporting member states. The essay examines the states' reasons for forming the organization and the common interests that directed the organizations policies. The political structure is also discussed, stressing the shifts in power from one member state to the next. Important policy changes through to the present have led to the strength of the organization as an oil cartel, because production levels and sales quotas are monitored closely and distributed equally among the member states.
From the Paper "The five founding members of OPEC, therefore, found themselves in a classical dependency relationship with the powerful multinational oil companies that held a virtual stranglehold on the crude oil resources in the five countries. The catalyst for the five countries to form OPEC was a decision by the seven multinational oil companies in 1960 to lower the so-called posted price for crude oil. The posted price was the price that each of the seven oil companies would pay the host nations for the crude oil extracted from their resources. The five nations had no say in establishing this price. In effect, the "Seven Sisters" themselves acted as a cartel. By establishing their own cartel, the founding five OPEC nations were demonstrating their resolve to gain control over their own crude oil resource."
From the Paper "OPEC was created at the Baghdad Conference of September 10-14, 1960. The five founding members were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. OPEC was formed in response to the over production of oil in the late 1950's which in turn caused the price of oil to drop drastically (Encarta). The objective of OPEC as stated by the member countries is ?to co-ordinate and unify petroleum polices among member countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry (OPEC 1).?
Tags:countries, exporting, organization, petroleum, oil, arab, opec
Abstract This paper provides a thorough look OPEC and examines factors such as whether the internal problems that beset OPEC will continue to reduce the effectiveness of the cartel's price-setting objectives for crude oil and lead to the self-liquidation of the cartel. It also asks if the development of alternative crude oil sources, the development of alternative fuels, technological innovations that reduce the demand for energy consumption, and political developments such as the creation of the WTO, would lead to a reduction in the effectiveness of the cartel's price-setting objectives for crude oil. The paper finally addresses whether these factors will lead to the self-liquidation of the cartel.
The study assesses the likelihood that OPEC will be able to function efficiently as a cartel in the future, as well as the likelihood that the cartel will continue to exist through the next decade. It explains that both the effectiveness of OPEC as a price-setting export cartel and the continued existence of the cartel are significant for not only the member states of OPEC but also for all crude oil importing states.
From the Paper "The Organization of Petroleum Exporting countries (OPEC) was founded in Iraq in 1960. The founder members of the organization were Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The purpose of the organization was (1) to unify and coordinate the petroleum policies of the member states, and (2) safeguard the general interests of the member states. Eventually, 13 countries joined OPEC. The eight additional member states are Algeria, Ecuador, Gabon, Indonesia, Libya, Nigeria, Qatar, and the United Arab Emirates (Hunter, 1999).
OPEC functions as a cartel. Conflicting objectives among member states of the organizations, rivalries among these states, and changing global economic conditions, however, frequently have led to the inefficient functioning of the OPEC cartel (Crainer, 1996). These same conditions frequently have led to strains within the OPEC cartel that have threatened the both the organization's continued effectiveness and its very existence (Amuzegar, 1997)."
Abstract The effectiveness of the Organization of PetroleumExportingCountries (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."
Abstract This paper discusses the OPECorganization in the 1970s, and its effects, which are examined through a neo-realist framework, and therefore show how the examination of utility-maximizing states both explains and provides meaning to the OPEC issue. OPEC's actions are presented as an example of a counter-hegemonic movement, which, rather than undermining the hegemonic control of the West, was unsuccessful and resulted in OPEC's incorporation into the global economic system.
From the Paper "Starting in the 1970s, the Organization of Petroleum Exporting Countries (OPEC) cartel managed to achieve an unprecedented level of control over the economies of the developed Western world, extracting billions of dollars of wealth and damaging the macro-economies of these nations."
Abstract This paper describes how U.S. foreign policy has developed as the result of American efforts to influence the price and supply of oil in OPECcountries. Also examined are the impact of variations in the supply and price of oil on the U.S. economy, the 1970 oil crisis, the impact of the Persian Gulf War, and the current unrest in the Middle East in this context. A summary of the research is presented in the conclusion.
Outline
Major Players and Events Influencing U.S. Foreign Policy
Overview of Issues Related to Economic Sanctions
Overview of the Persian Gulf
Impact of the Persian Gulf War of U.S. Foreign Policy
U.S. Foreign Policy and the Strategic Petroleum Reserve
From the Paper "Since the 1973 OPEC oil embargo, U.S. dependence on oil imports has risen to record levels, from 28 percent in 1973 to 48 percent in 1997 ("The 1973 Oil Embargo: What Have We Learned In the Last 25 Years",? n. pag.). Through 1972, Americans had become accustomed to expanding energy consumption with minimal concerns about the constancy of supply or sharp price escalations. In 1973, however, expectations about energy supply changed dramatically. The turmoil started early in 1973, as customers experienced the first symptoms of something being wrong with electricity brown outs and rapidly rising prices for fuels and other necessities. Price controls and allocation systems not only failed to resolve these problems, they seemed to aggravate them. Most memorably, October brought an oil embargo by members of the Organization of Arab Petroleum Exporting Countries, cutting further into the supply of oil and elevating prices to levels previously thought impossible. Customers experienced lines and sometimes no fuel at gasoline stations. A year of bad news was punctuated in December, when the President announced that because of the energy crisis the lights on the national Christmas tree would not be turned on. Throughout the year, energy stayed at the forefront of public attention. Interruptions in energy supplies were also closely related to other issues of national importance-a weakening of the economy and a reassessment of America's strategic position in the world. From 1973 to the mid-1980's, prices continued at very high levels, in part because of a second oil shock in 1979-80. During this period, rapid progress was made in raising American oil production, reducing dependence on oil imports, and improving end-use efficiency. After the oil price collapse of the mid-1980's, however, prices retreated to more moderate levels, the pace of efficiency gains slowed, American oil production fell, and the share of imports rose. Other, more violent events in the Middle East, however, would soon create a new political situation in which the U.S. was to be forced to create foreign policy directly as a result of America's need for oil."
Abstract This paper relates that while the Organization of PetroleumExportingCountries (OPEC) is often considered to be a conglomerate of all the powerful oil producing nations of the world, the actual power of OPEC may not be as substantial as is perceived. The paper discusses the fluctuation in oil prices and how it is due to trader and investor expectations as well as speculation. The paper also examines other factors behind the price increases and then addresses the recent deflation in oil prices. The paper concludes that in order for the United States to grow in independence and away from the seemingly cartel-like oil environment of the world, an increase in domestic oil must be pursued.
Outline:
The Crude Oil Market
The Power of OPEC The True Players of the Oil World
Eternal Demand, Finite Supply
Fluctuations in the Crude Oil Market and Price Regulation
Tangible Oil Price Fluctuations
Conclusion
From the Paper "The crude oil market is one of incredible demand with a seemingly limited supply; however this will be exhibited to be at times merely a matter of perception. The oil market in recent times, particularly within the last two years, has been relatively volatile. Prices have spiked up and dropped down, creating a situation of speculation which in turn has allowed a bubble to develop. Traders warned that the crude oil market was moving into an "unstable equilibrium" as the International Energy Agency (IEA) raised concerns about the market's ability to meet an expected jump in demand for oil-based products. (MEED 16) This lack of supply for the expected demand, which may perhaps be the result of cartel-like collusion on price manipulation, will inevitably lead to an increase in the cost of oil, which ultimately will trickle down to the consumer."
Examines the Oganization of PetroleumExportingCountries (OPEC). Basic purpose, functions, policy- making, structure, role of divisions; power of Saudi Arabia. Two Charts.
4,500 words (approx. 18 pages), 10 sources, 2001, $ 135.95
From the Paper "OPEC: The Organization of Petroleum Exporting Countries (OPEC) was founded in 1960 as an intergovernmental organisation with five member states. Membership in the organization was and remains voluntary, in that a member state may leave the organization at any time. Joining the organization, however, requires the approval of other member states. In early 2000, OPEC has 11 member states.
The essential purpose of the organization has not changed since it was founded. That purpose is to (1) unify and co-ordinates the petroleum policies of the member states, and (2) safeguard the general interests of the member states.
Knowledge of the enduring purpose of the organization does not address the underlying issue of why the five original member states of OPEC .."
Abstract The paper carefully examines the dynamics of OPEC including identification and assessment of the 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.
From the Paper "Gilpin stated that control through the distribution of power has, throughout history, been characterized by: (1) hegemony or imperialism, in which a single powerful state "dominates the lesser states in the system"; (2) bipolarity, in which "two powerful states control ? interactions within and between their respective spheres of influence"; and "a balance of power in which three or more states control one another's actions through diplomatic maneuver, shifting alliances, and open conflict." Keohane, however, tended to discount the dominant capacity and willingness to exercise such capacity accorded to power states in Gilpin's assessment of international control. In this context, Keohane stated that claims "for the general validity of the theory of hegemonic stability are often exaggerated. The dominance of a single great power may contribute to order in world politics, in particular circumstances, but it is not a sufficient condition ?." Keohane added that hegemony "and cooperation are not alternatives; on the contrary, they are often found in symbiotic relationships with one another." Gilpin recognized a greater power for the hegemonic state."
Abstract The paper discusses China's interest in investing in the extraction of oil products from Canada's tar sands. The paper also looks at China's energy needs and how their needs affect the Canadian energy industry. The paper then shows how Canada's petroleumexports are a windfall of unexpected revenues. The paper points out, however, that the price for Canada is a partial sacrifice of industry and perhaps even national sovereignty to China's foreign ownership and investment.
Outline:
Summary Proposal
China's Energy Needs
Canadian Energy Industry
The Economics of China's Investment
Canadian Economic Aspects
Conclusion
From the Paper "Canada is stated to own some of the second largest oil reserves in the world after Saudi Arabia. These are the tar sands in Western Canada which have been receiving much international interest as well as local interest (Unlocking). Yet, the extent of these oil fields are almost completely limited to vast oil sand fields in Alberta Province of Western Canada ("Canada"). Because of the extremely difficult and expensive nature of recovering and refining these types of oil supplies, Canada, and by extension, the Canadian economy has not benefited greatly from the existence of these oil reserves in the past. This situation has changed over the past several years with the increase in oil prices and the destabilization of the petroleum industry in general which has led to much interest from foreign entities interested in investing in the extraction of oil products from these tar sands with China or Chinese entities being one of the major interested parties."
Abstract This research paper explores the determining factors of growth in Sub-Saharan Africa (SSA) by examining the increasingly dominant role of financial assistance, natural resources, culture and non governmental organizations in selected countries of the region. To understand this relationship better, the paper makes a comparison between economic policies, cultural variations and political systems of selected countries. The countries this study reviews are Botswana, Ethiopia, Ghana, Kenya, Mauritius, Tanzania, Uganda and Sierra Leone.
Outline:
Methodology
Objective
Introduction
Theoretical Background
Previous Work and Literature
Economy Openness
Culture
Foreign Assistance
The Role of NGOs
From the Paper "Countries rich in resources must be tempted to promote their export growing policies, which will increase economy openness and exposure to external shocks even to a higher degree. The country will improve its' international competitive position if it promotes exports and trade by investing heavily into this economy sphere. The second round positive result from promoting exports and trade is the future possible exploitation of economies of scale in production when the output sales markets for the producers expand. The third round positive affect is that the producers will naturally eliminate inefficient production facilities and invest into high technology and train and grow skilled labor resources to remain competitive in the global arena. These are the main reasons for opening up the economy and playing on the global market arena, and are very effective economy stimulating methods for economies with low local purchasing power and thus limited local output markets, which are the classifications of African counties, as proven by Fosu . "Open economies do grow more rapidly than closed economies... Whether the measure of openness has to do with exchange rate overvaluation, relative price distortions, tariffs and quotas, share of trade in GDP, the black market premium, or a composite measure combining some of these with state monopolization of commodity exports and general socialism" (Easterly, 2000, p. 48) . "
Abstract The paper reviews OPEC pricing and production policies and explains how it affects the economy of the United States and world economies. The paper discusses reasons for the OPEC policy of cutting production to keep oil prices from falling.
From the Paper "The pricing policies and production targets of the Organization of Petroleum Exporting Countries (OPEC) have a profound impact on the American and world economies. The economic clout that OPEC has stems from the basic forces of supply and demand; they have the oil and we need it. Since September, OPEC has been pursuing a policy of cutting production in order to keep oil prices from falling. (Hoyos Morrison p)"
Abstract The paper is presented as market plan to export a ready-to-drink cold coffee product to Australia. The product is named Elixa and the aim is to manufacture it and sell it to America as well as export it to Australia. The paper covers issues such as Australia as the exportcountry of choice; Elixa as an export product; profile of the industry; marketing issues; exchange rates and distribution issues.
From the Paper "The advertisements will focus on the social and lifestyle issues, such as showing a group of young people sitting drinking Elixa at the beach. This presents the summer image and the social image. It also implies a comparison between sitting with friends at a cafe having a coffee and sitting around informally with friends. The cafe scene is one that has meaning for people and suggests the social side of the coffee drink. Having this scene recreated but in a more relaxed setting puts the focus on Elixa as being a friendly addition to a lifestyle. Showing the beach represents the coastal living of Australia."
