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Opec Essay

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OPEC is the Organization of the Petroleum Exporting Countries. There are eleven members of the OPEC. These countries include Venezuela, Iraq, Libya, Nigeria, Saudi Arabia, Indonesia, the United Emirates, Algeria, and Iran. OPEC is the world’s largest oil producer. In May of 2015, it is reported that OPEC produces 31.11 million barrels of crude oil everyday. It produces about thirty-eight percent of the world’s total production. The United States produces about eleven percent. In the past few years the demand and price of gas and oil has gone up and down. Recently, it has had drastic changes. Cheaper oil didn’t turn out to be the answer to economic growth.
The United States uses much more oil than the average country. From 1970 to 2002, the …show more content…

It isn’t necessarily working out that way. Falling oil costs have pumped up deflation fears across Europe and Japan. This adds risk that consumers and businesses will hold back on spending and investment, dragging on growth. Pump prices have fallen forty percent in the United States. Pump prices have fallen fifteen percent in Japan. Past oil-price declines have often signaled a global slowdown as demand for crude collapses. The United States crude oil for March delivery sank about nine percent to $48.45 a barrel. This could potentially lead to economic and even political disturbance in many petro states such as Iran, Venezuela, Brazil, Nigeria, Ecuador, and Russia. Many of these countries may also cut foreign cut for countries like Egypt due to low economy and the lack of …show more content…

United States domestic production has nearly doubled over the last six years, pushing out oil imports that need to find another home. Saudi, Nigerian and Algerian oil that once was sold in the United States is suddenly competing for Asian markets, and the producers are forced to drop prices. Canadian and Iraq oil production and exports are rising year after year. Even Russia, manages to keep pumping and producing its own oil. The economies of Europe and developing countries are weakening and vehicles are becoming more energy-efficient. The demand for fuel is slowly going down with new technology and more efficient energy

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