...(2011)[show] * Algeria * Angola * Ecuador * Iran * Iraq * Kuwait * Libya * Nigeria * Qatar * Saudi Arabia * United Arab Emirates * Venezuela | Leaders | - | President | Rostam Ghasemi | - | Secretary General | Abdallah el-Badri | Establishment | Baghdad, Iraq | - | Statute | September 10–14, 1960 | - | in effect | January 1961 | Area | - | Total | 11,854,977 km2 4,577,232 sq mi | Website www.opec.org | | Currency | Indexed as USD-per-barrel | | | | Current members OPEC has twelve member countries: six in the Middle East, four in Africa, and two in South America. Country | Region | Joined OPEC[25] | Production (bbl/day) | Algeria | Africa | 1969 | 2125000 !2,125,000 (16th) | Angola | Africa | 2007 | 1948000 !1,948,000 (17th) | Ecuador | South America | 2007[A 1] | 0485700 !485,700 (30th) | Iran | Middle East | 1960[A 2] | 4172000 !4,172,000 (4th) | Iraq | Middle East | 1960[A 2] | 3200000 !3,200,000 (12th) | Kuwait | Middle East | 1960[A 2] | 2494000 !2,494,000 (10th) | Libya | Africa | 1962 | 2210000 !2,210,000 (15th) | Nigeria | Africa | 1971 | 2211000 !2,211,000 (14th) | Qatar | Middle East | 1961 | 1213000 !1,213,000 (21st) | Saudi Arabia | Middle East | 1960[A 2] | 8800000 !8,800,000 (1st) | United Arab Emirates | Middle East | 1967 | 2798000 !2,798,000 (8th) | Venezuela | South America | 1960[A 2] | 2472000 !2,472,000 (11th) | Total | 33,327,700 bbl/day | WHAT IS OPEC – Summary...
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...historic highs in mid -2008 and only to fall in the last four months of 2008” (kojima 2009:9). Economic growth in the United States of America (USA) and the emerging new markets between 2004 and 2008 gave rise to demand for oil and high-rise in the price of oil. This high volatility of prices has led governments and institutions to intervene in the oil market. This coursework aims at showing the impact of oil price volatility in the global market; it also examines the various roles played by governments, financial institutions and The Organisation of Petroleum Exporting Countries (OPEC) in stabilizing and managing the risk, and the remote causes of price volatility. Government intervention in the oil and gas market is due to the high prices, and they have introduced schemes, policies to check and cushion the effects and intensified their efforts in diversifying away from crude oil while OPEC too intervenes by stabilizing the price of crude oil in the international market which is one of the body’s statutory function. Crude oil prices have been defying all known rules of...
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...Exporting Countries (OPEC) have received considerable attention both in the academic literature and in the media. Many conflicting theoretical and empirical interpretations about the nature of OPEC and its influence on world oil markets have been proposed. The debate is not centred on whether OPEC restricts output, but the reasons behind these restrictions. Others explain production cuts in the 1970s in terms of the transfer of property rights from international oil companies to governments (Johany, 1980; Mead, 1979). Others explain output restrictions in terms of coordinated actions of OPEC members. Within the literature, OPEC behaviour ranges from classic textbook cartel to two block cartel (Hnyilicza and Pindyck, 1976), to clumsy cartel (Adelman, 1980), to dominant firm (Salant, 1976; Mabro, 1991), to loosely co-operating oligopoly, to residual firm monopolist (Adelman, 1982) and most recently to bureaucratic cartel (Smith, 2005). Others have suggested that OPEC oscillates between various positions but always acts as a vacillating federation of producers (see for instance Adelman, 1982; Smith, 2005). The existing empirical evidence has not helped narrow these different views. Griffin’s (1985) observation in the mid-1980s that the empirical studies tend to “reach onto the shelf of economic models to select one, to validate its choice by pointing to selected events not inconsistent with model’s prediction” still dominates the empirical approach to studying OPEC behaviour and its...
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...glory. But one cannot watch it without understanding and accepting the true meaning behind this film. It is the real deal about anti-colonialism and freedom. Pontecorvo sets it up as a documentary, not wanting to take any sides. The film is very straightforward and makes the viewer feel like they are really there by a lot of the scenes that are shot. The score plays a big role in the movie by adding suspense, tension, and unity. The film had a lot of criticism when it first came out because it was the first movie set in Algeria, the first movie about anti-colonialism, and the first movie that showed a lot of violence and torture scenes. The Battle of Algiers is about a freedom fighter Algerian group called the National Liberation Front, or the FLN, who is trying to gain their independence from the French foreign legion in the early 1960’s. It is a bout a clash between two groups of people who wholeheartedly believe they have the right to occupy the land of Algeria. The French have been ruling there for the past 150 years without any resistance, so they believe why should they give it up all of a sudden. Yet the Algerians have dwelled in this land forever and feel like it is time to stand up and gain their independence. The opening scene starts out with a torture scene; any film that starts out that way makes the audience feel like they are about to go on an intense roller coaster. They have to embrace themselves for what is to lie ahead, especially in this film. Ali, who is the...
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...Noor Navaid P.7 Bolanos January 29, 2016 Imperialism in Africa History seems to repeat itself. Countries have disagreements, wars start, and nations began claiming land. One of the most repetitive problems with history is imperialism. European imperialism in Africa was driven by many causes, including the need for resources, trade and market, but most of all nationalism. One factor for imperialism in Africa was the need for resources. Countries in Europe took advantage of the fact that African land had many resources that would be of use for Europe. European countries would occupy African land and simply take its resources. For example, France took over French West Africa, and it wasn’t for enjoying the never ending sand dunes of the Sahara desert (Doc A). At first glance, it would seem unreasonable for anyone to be interested in taking over such “barren” land. The reality, however, was that French West Africa was rich with resources. The colony’s many resources included, gum, palm oil, cotton, peanuts, bananas, coffee, and cocoa, (Doc C & D). With all these resources, who wouldn’t want to own the Sahara Desert? Clearly imperialism was pushed by the abundant amount of resources available in Africa. Another reason for Imperialism in Africa was trade and market. In 1854, when Great Britain began trading and marketing from South Saharan Africa, the imports cost more than the profit of exports. By 1900, the gain from exports increased by ten times and were more than half...
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... People living in Africa are usually living in the Saharan Region. Sometimes, this region could be very hot, dry, and unforgiving. The Sahara is the largest desert in the world, and it is still growing due to poor farming techniques and little water and rain. This essay will be about how people have managed to adapt and thrive in conditions such as these, focusing on the Sahel, Oasis, and Desert environments of the Sahara. Many adaptations have been made from the people living in the environments previously stated and they will be discussed further in the essay. The Sahara being the world's biggest desert, the Sahel slowly succumbing to desertification and deforestation, these are all challenges that people have overcome and adapted to. One of the environments this essay will be consulting is the Desert environment. The Sahara stated before, is the largest in the world, this means that life here will be very difficult due to the lack of water, shade, and grazing land. The Sahara is quickly getting larger and larger and people like the Tuareg nomads have adapted to this environment in many ways. They have adapted to the raging sandstorms by wearing masks or hooded clothing to protect their faces. They move from one place to another and do not remain still for a extended amount of time. Another way they have adapted to the Sahara is by trading goods. They may not have money but they can trade goods for an profit and a living. The place that their cattle may graze will be discussed...
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...OIL AND DEVELOPMENT INTRODUCTION Oil is one of the most important resource of industrialized nations. It has various uses like to generate heat, fuel vehicles, manufacturing goods like chemicals, plastics, paints, medicines etc. Oil is a non-renewable resource and thus has limited supply and due to its many uses has very high demand. Earlier price of oil was mainly influenced by OPEC. Organization of Petroleum Exporting Countries (OPEC) is type of cartel which mainly determines price of oil by actual supply and demand and partly by expectation. A Cartel is a group of sellers of a product who have joined together to control its production, sales, and price to obtain the advantages of monopoly. OPEC allows its members to organize their economic policies to guarantee income and influence of oil prices globally. OPEC was formed at the Baghdad conference in September 1960. The first members were Iraq, Kuwait, Iran, Venezuela, and Saudi Arabia. The organization later included the United Arab Emirates, Qatar, Algeria, Indonesia, Ecuador, Nigeria, Angola, Libya and Gabon. OPEC has a unique structure because its members are not companies but rather countries. As these countries have formed a cartel, the market is served by a monopoly as the primary purpose of a cartel is not only to drive up prices, necessarily, but to drive competitors out of the market. The members not only agree to the total level of production but also about the amount produced by each member. OIL PRICE TREND The...
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...Negotiation/MBA November 18, 2005 CLASS #3 What is Game Theory? In debriefing Oil Pricing, we will use terms borrowed from Game Theory. Game theory is the study of how people behave in strategic situations. These are situa‐ tions in which each person, when deciding what action(s) to take, must first consider how others might respond to that action. Decision‐making is a constant activity of managers and business. Strategic decisions have to be made every day. Making the wrong decision can have a negative effect not only on the manager’s career, but also on the company’s survival. Even the most successful executives make mistakes from time to time. This is in many cases due to the way in which executives process information coming from the outside world. Managers and business students study psychology and negotiation to avoid mind traps. Particular techniques can be used to facilitate the decision‐making process (brainstorming, simulations, etc). Oil Pricing is a so‐called ʺsocial trapʺ exercise, in which long‐term maximization requires mutual trust where significant short‐term gains are possible by breaking that trust. In most rounds, communication must be implicit, and is hence highly ambiguous and subject to misinterpretation, usually by the pro‐ jection of negative and adversarial intentions that donʹt actually exist. At certain points, the parties are given the opportunity to communicate explicitly, and may choose to reach pricing agreements or not (and...
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...OPEC and the economics of cartel Presented by Sanjay Gupta Lakshmi Varma Lakshmi Nair Shibin T Renjith Outlines What is OPEC? 1. 2. 3. Oil – A basic necessity OPEC (Information on OPEC) OPEC Side Line Objectives Our main premise of this Presentation is to derive economics concepts from OPEC and the economics of cartel. We will also cover briefly micro economics concepts – Demand and Supply, market structure & pricing decisions and related concepts. 2. OPEC is an epitome of Oligopoly 1. Oil – Life Blood of Indian Economy OIL - One of the life bloods of our Indian economy is oil. The impact of oil in today’s Indian economy has been witness by consumers many times. We have seen how human spending and travel got affected as the price of oil fluctuates. In contrast almost all energies are generated using oil, to mention few; Cars, Trucks, Indian railways, Plane, use oil in order to run their engine. Therefore if oil supply disturbed for one day we can imagine how the Indian economy can be affected greatly. OPEC - Introduction About OPEC (pronounced oh-peck)- Organization of the Petroleum Exporting Countries - Organization of the Petroleum Exporting Countries, established in Bagdad, Iraq in 1960. OPEC as a cartel, manipulate supply of oil in the market, in hopes of keeping prices, and profits, high. It is comprised of 12 members –Algeria, Angola, Ecuador, Islamic Republic of Iran, Iraq, Kuwait, Socialist People’s Liberian Arab...
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...What Causes High Gas Prices? There are various factors that play a role in the price consumers pay at the pump. The major cause in the fluctuation of gas prices is crude oil. Crude oil is that main ingredient involved in the manufacturing of gas. One body that has great influence over the worldwide price of oil is the Organization of Petroleum Exporting Countries (OPEC). OPEC is made up of twelve of the world’s biggest oil-producing nations which include: Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. Since OPEC’s nations produce so much of the world’s oil supply, they can control the level of production. Oil is one of the world's most important commodities, and as a result, the nations that control the majority of the world's supply have a great deal of power over its availability. In addition, conflicts such as war in an oil-producing region can also bring up the price of gasoline. Andre Gerolymatis, a history professor at Simon Fraser University, says political upheaval in Ukraine and Russia's military incursion into Crimea could be putting pressure on prices. The reason, of course, is that 40 per cent of Europe's gas and oil comes from Russia, and it comes through the Ukraine. So there's the potential that this could be disrupted, and that means that the Europeans would have to go elsewhere for gas, and that would drive the prices up. (Bains, 2014) Bibliography Bains, M. (2014, March 5). Russia-Ukraine...
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...more information about JSTOR, please contact support@jstor.org. . Economic and Political Weekly is collaborating with JSTOR to digitize, preserve and extend access to Economic and Political Weekly. http://www.jstor.org This content downloaded from 103.4.92.53 on Fri, 28 Nov 2014 09:41:36 AM All use subject to JSTOR Terms and Conditions COMMENTARY Power OPECs Price-Making ^= BANDYOPADHYAY KAUSHIK RANJAN of The Organisation Petroleum is Countries a Exporting of dominant cartel consisting withlargereserves producers its and ithas alwaysexercised inthecrude power price-making in oil market. However, thepast opec has been few years, that claiming ithas lostitspower The crudeoil prices. to alter whether opec's article explores claimis correct. is at (kaushik.banerjee@gmail.com) the AsianInstitute Transport of Development, NewDelhi. l8 Kaushik Ranjan Bandyopadhyay opec was In the early1980s,however, likea "clumsy ofbehaving accused often cartel"3with a clear presenceof nonbehaviour amongsomeofits cooperative with relativelylower crude members and Indonesia reserves (likeQatar, Algeria, of On account lower reserves, ofthedeveloped,...
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...multiplier times negative impact on GDP and other macro economic variables such as inflation. Oil and other petroleum products are scarce commodities in the world. Like prices of other commodities the price of crude oil experiences wide price swings in times of shortage or oversupply. The crude oil price cycle may extend over several years responding to changes in demand as well as OPEC and non-OPEC supply. Throughout much of the twentieth century, the price of U.S. petroleum was heavily regulated through production or price controls. In the post World War II era, U.S. oil prices at the wellhead averaged $28.52 per barrel adjusted for inflation to 2010 dollars. In the absence of price controls, the U.S. price would have tracked the world price averaging near $30.54. Over the same post war period, the median for the domestic and the adjusted world price of crude oil was $20.53 in 2010 prices. Adjusted for inflation, from 1947 to 2010 oil prices only exceeded $20.53 per barrel 50 percent of the time. (See note in the box on right.) Until March 28, 2000 when OPEC adopted the $22-$28 price band for the OPEC basket of crude, real oil prices...
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...IMPACT OF THE DISCOVERY AND EXLORATIONOF UNCONVENTIONAL OIL ON CONVENTIONAL OIL OPEC STATES | BYNAME:STUDENT ID:MODULE: | | | Contents Contents 1 Introduction 2 OPEC (Organization of the Petroleum Exporting Countries) 2 UNCONVENTIONAL OIL 3 SOURCES OF UNCONVENTIONAL OIL 3 CONVENTIONAL OIL 4 PESTLE ANALYSIS 4 PESTLE ANALYSIS ON NIGERIA 4 PESTLE ANALAYSIS ON U.S 6 Conclusion 9 References 10 Bibliography 10 Introduction The producers of oil which are outside the OPEC (Organization of Petroleum Exporting Countries) are been recorded to be producing almost 60 percent of the oil used in the world with constant increase in the hurdles of production (Khadduri, n.d.). Some researchers have indicated that the Non-OPEC states is as a result of having less producing wells, high costs of new projects, older wells and in most cases the increase in the home demand of oil which may cut the oil for exportation (Nakhle, 2013). Increases in the prices resulted in the difficulty of oil project and making it lucrative, resulting in the increase of the production of unconventional oil. Though at a time, there’s declination in the Non-OPEC oil production as the investing in new production of oil becomes tougher as a result of tightening, volatility of oil price, resource nationalism and credit markets (Brendow, K;, 2003). Now the unconventional oil production by Non-OPEC states is coming up as originally projected as few of the producers are been expected to offset...
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...NAME: EZIMAH CHIDINMA MATRIC NO: 10/SMS01/020 QUESTION: DISCUSS OPEC AS A COLLUSION MARKET STRUCTURE OPEC AS A COLLUSION MARKET STRUCTRE Collusion is a characteristic trait of oligopolistic industries. Intense competition and interdependent decision making encourages oligopolistic firms to cooperate. One way to lessen the competition among an oligopolistic rival is to join forces through collusion. In general, collusion among oligopolistic firms means that two or more firms decide to act like a monopoly rather than maximizing profit for each individual firm, the firms maximize total industry profit just as if a monopoly controlled the industry. Collusion can take one of two forms: explicit collusion and implicit collusion. * Explicit collusion: it is also called overt collusion. This occurs when two or more firms in the same industry formally agree to control the market. Admittedly, because collusion in the United States and most industrialized countries is illegal, such a formal agreement is likely to be highly secret and unlikely to be documented in any way. It might involve nothing more than a casual lunch among company presidents or company decision makers skulking around back alleys in the dead of the night discussing price changes. * Implicit collusion: also termed tacit collusion. This occurs when two or more firms in the same industry informally agree to control the market, often through nothing more than interdependent actions. A prime example of implicit collusion...
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...effective means of collusion in an oligopoly? * Price leadership practices violate US anti-trust laws. * The more differentiated the product is, the less effective price leadership is as a means of collusion. * There is no guarantee firms will follow the leader forcing the leading firm to reduce prices. * Cheating may occur. * A new entry can destabilize the price leader's position… -If a price leader in an oligopolistic market sets price and output in order to maximize profits and if that setting is high; then this will encourage the entry of new firms into the market. And that will result in the loss of profits over the long run. 3. (Collusion and Cartels) why would each of the following induce some members of OPEC to cheat on their cartel agreement? a. Newly joined cartel members are less–developed countries. * By producing more output than it has agreed to produce, the new member country can increase its share of the cartel's profits. b. The number of cartel members doubles from 11 to 22. * The greater the number of firms, the more probable it is that one of those firms is a maverick firm; that is, a firm known for pursuing aggressive and independent pricing strategy. c. International debts of some members grow… d. Expectations grow that some members will cheat. * In this case, cheating would mean that a country produces more barrels of oil each day than its assigned amount. In order to grab a larger share of the profit...
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