OPEC

Think about … in all the world, which country do you think consumes the MOST oil?

Where do you think most of the world’s oil is located? NOTE … is there oil in Israel?

Therefore, where do you think the US gets most of it’s oil?

OPEC In 1960, OPEC was formed! What is OPEC?

Organization of Petroleum Exporting Countries

Based on your knowledge of the Middle East and what you just learned about oil deposits, which countries do you think are members of OPEC?

Ponder … why would these countries unite and form this organization? Think about … – What would be their motivation? Their purpose? – What would they gain?

Let’s do a little experiment … How can I make MORE money?

Why was OPEC formed? To protect the interests of the oil- producing countries. – OPEC allows these oil-producing countries to set prices for the crude oil – By taking COMPETITION out of the market, they can get whatever price they want!

Who were the original members? Iran Iraq Kuwait Saudi Arabia Venezuela

Who are members of OPEC today? The original 5 plus – Algeria – Angola – Indonesia – Libya – Nigeria – Qatar – UAE

Just a few more facts … 2/3’s of the world’s oil belongs to OPEC members! OPEC members own ½ of the world’s exported oil!

OPECOPEC What is OPEC? When did it begin? Who were the original 5 members? Why? (For what purpose was OPEC formed?) Are your notes correct? Great! Let’s go to our assignment!

Your turn … Writing assignment - – If you were an oil-producing country, would you join OPEC? Why? EXPLAIN your answer! Think about … what would be the benefits of joining this organization? What would be the disadvantages if you did NOT join this organization?

OPECOPEC What is OPEC? When did it begin? Who were the original 5 members? Why? (For what purpose was OPEC formed?)

OPECOPEC What is OPEC? Organization of Petroleum Exporting Countries When did it begin? 1960 Who were the original 5 members? Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela Why? (For what purpose was OPEC formed?) To protect the interests of the oil-producing countries; OPEC allows these oil-producing countries to set prices for crude oil; By taking competition out of the market, they can set whatever price they want