OPECOrganization of the

Petroleum Exporting Countries

When was OPEC formed?

September 14, 1960

Who were the original members? Who later joined the organization?

1. First, Iran, Iraq, Kuwait, Saudi Arabia, Venezuela.

2. Later, Qatar, Indonesia, Libya, UAE, Algeria, Nigeria, Ecuador, Gabon

Interactive Map http://www.opec.org/library/Annual

%20Statistical%20Bulletin/interactive/FileZ/worldmapz.htm

What is OPEC’s objective?

Coordinate and unify petroleum prices among member countries

What role does the United States play in OPEC?

NONE

What did OPEC do in the 1960s?

The 60s were the forming years when OPEC tried to establish itself as a world player in the world oil market. It adopted resolutions and policies with the seven major oil producing companies

The Seven Sisters Oil Companies

Standard Oil of New Jersey (Esso). This later became Exxon, now ExxonMobil.

Royal Dutch Shell Anglo-Dutch British Anglo-Persian Oil Company (APOC). It is now known

solely by the initials BP. Standard Oil of New York (Socony). This later became

ExxonMobil. Standard Oil of California (Socal). This became Chevron. Gulf Oil. A network of stations in the northeastern United

States still bears this name. Texaco. Merged with Chevron in 2001. Texaco remains as

a Chevron brand name. http://en.wikipedia.org/wiki/Seven_Sisters_(oil_companies)

What did OPEC do in the 1970s?

OPEC rose to international prominence. Member countries took control of their oil industries. OPEC persevered the first two oil price crises set forth by the Iranian Revolution, 79, and the Arab oil embargo, 73.

What did OPEC do in the 1980s?

OPEC realized cooperation was necessary if market stability and reasonable prices would be achieved in the future. The environment became an issue. The third oil pricing crisis occurred, 86, when prices collapsed.

What did OPEC do in the 1990s?

A fourth crisis was averted when output was increased to combat high rising prices. Environmental concerns created a buzz about future oil productions. OPEC and non-OPEC countries worked together when the Asian markets collapsed in 1998

Identify the three major oil pricing crises.

Arab oil embargo, 73

Iranian Revolution, 79

Prices peaked at the beginning of the decade, before beginning a dramatic decline, 86

Homework

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