New Microsoft Office Power Point Presentation

INTRODUCTION OPEC ( ORGANISATION OF THE PETROLEUM EXPORTING COUNTRIES) FORMED INITIALLY ON . IT IS A CARTEL OF TWELVE COUNTRIES MADE UP OF ALGERIA, ANGOLA, ECUADOR, IRAN IRAQ, KUWAIT, LIBYA, NIGERIA, QATAR, SAUDI ARABIA, UNITED ARAB EMIRATES AND VENEZUELA. OPEC HAS MANTAINED ITS HEADQUARTERS IN VIENNA SINCE 1965 OPEC was founded in Baghdad, triggered by a 1960 law instituted by American President Dwight Eisenhower that forced quotas on Venezuelan and Persian Gulf oil imports in favor of the Canadian and Mexican oil industries. Eisenhower cited national security, land access to energy supplies, at times of war. When this led to falling prices for oil in these regions, Venezuela's president Romulo Betancourt reacted by seeking an alliance with oil producing Arab nations as a preemptive

• As a result, OPEC was founded to unify and coordinate members' petroleum policies. Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were members

PRINCIPLE GOAL OF OPEC • According to its statutes, one of the principal goals is the determination of the best means for safeguarding the cartel's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries

1973 OIL CRISIS

• The 1973 oil crisis started in October 1973, when the members of Organization of Arab Petroleum Exporting Countrie or the OAPEC (consisting of the Arab members of OPEC, plus Egypt and Syria) proclaimed an oil embargo" in response to the U.S. decision to re-supply the Israeli military" during the Yom Kippur war; it lasted until March 1974.[1] OAPEC declared it would limit or stop oil shipments to the United States and other countries if they supported Israel in the conflict. With the US actions seen as initiating the oil embargo, the long-term possibility of embargo-related high oil prices, disrupted supply and recession, created a strong rift within NATO; both European nations and Japan sought to

CONT…. • This control of a vital commodity became known as the “oil weapon,” which came in the form of an embargo and cutbacks in oil production from the Arab states to select industrial governments of the world to pressure Israel during the fourth Arab-Israeli War in October 1973. These target industrial governments included the United States, Great Britain, Canada, Japan, and the