1. OPEC Founded in Baghdad, Iraq in 1960 Current members: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, UAE, Algeria, Nigeria OPEC produces 35-40% of world oil OPEC has est. 75% of world oil reserves* * Energy Information Association, 2001

2. OPEC Assumptions Large reserves Low production costs (<$1.50/bbl) Can increase oil production quickly (not producing at capacity) Iraq’s future role (after sanctions) ? Reserve to production ratio > 85 years

3. World Crude Oil Production EIA 1999 Review

4. OPEC Market Share EIA 1999 Review

10. 2001 Crude Oil Price

11. OPEC Political Instability Large populations that are under the age of 21 (60% in Iran); general unrest Oil wealth generally held by few Frustrated populations due to poor economic conditions, poor social conditions, religious issues, lack of opportunity, etc. etc.

15. Non-OPEC Production Potential

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