Essay about OPEC Presentation

Energy Crisis (1970’s) states that the crisis officially began when the “Organization of Arab Petroleum Exporting Countries (OAPEC) reduced their petroleum production and proclaimed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel.” They did

In our society, oil is one of the core requirements. Whether it is to drive from a point A to a point B or to fly between distant countries, oil always had a fundamental impact on our civilization. Its impact is felt, on a daily basis and under many aspects. Not a day goes by without hearing about the Brent's changing undulation, on the markets in New York or London. Some have thought that the desire to gain control of Iran's oil resources was the core of the CIA's intervention in that country, in the 1950s. In recent years, it was considered, by left-wing groups, that the war in Iraq was based upon an attempt of foreign control over the Iraqi petroleum resources. Even though both events have an unquestioned place

Benjamin Sovacool explains in his article that over the period of twelve years, the United States shale gas production increased 24.5 times the amount it produced in 1998. From 0.2 trillion cubic feet to an enormous 4.9 trillion cubic feet. Natural gas is also a huge financial benefit to North America. Before this drastic increase of fracking and natural gas production, the United States imported a clear majority of its oil and energy sources from the Middle East. This caused the middle east to obtain a control over the United States economic situation. For example, the 1979 oil embargo caused by OPEC (organization of petroleum exporting countries). According to Kimberly Amadeo, their decision to increase oil prices by a meager ten percent, caused oil rationing in the United States and worsened the already declining economy at this time. Since the increase in fracking and natural gas production, the U.S. has become decreasingly reliant on imported energy sources. Richard Janson denotes, that the impact of this influx of cheap gas has had many positive impacts on not only the economics of the energy industry, but foreign policy and the United States domestic policy. With the downfall in the need for imports for energy and the rise of hydraulic

Several oil-countries have been facing economic and political turbulence as a result of the crash in oil prices, and there is disagreement among OPEC as how to handle the situation. (Krauss) While this is happening, America’s oil production continues to rise, as it inches closer to becoming an energy superpower in production and consumption; and countries that depend on their oil exports face recession.

Additionally, the war in the middle east created a suspension in the export of oil to the U.S, and it quadrupled the price of oil. I think that our leaders

The embargo of oil shipments to the United States by the Organization of the Petroleum Exporting Countries (OPEC) resulted in a widespread national energy crisis which, to some degree, created the economic downturn.

3. Any travel/accommodation for interstate attendees would need to be arranged. Also the same for the guest speaker (if needed). Transfers to and from the airport would be advisable.

Since the oil embargo of 1977, there has been an increased awareness of our nation's energy security. As global population and energy consumption rise, the need for a stable energy supply has become a hot topic and a politically volatile issue. As our negative trade balance grows larger by the day, the United States finds itself in a rather precarious position. We are becoming more and more dependent on Middle East oil.

Unlike the 1970s, when the U.S. was held at bay by OPEC withholding oil production for political reasons, the growth of

the decisions made by BP and to some extent by Transocean and Halliburton, were the main reason for the

OPEC has consistently held the U.S. hostage with fixed oil prices and the threat of embargos. Many of the countries that belong to OPEC are not friendly to the United States, including: Iran, Iraq, Saudi Arabia, Venezuela, Libya, and Algeria. (Weil) The U.S. has declared many of these countries to be “state sponsors of terror”; however we still purchase their oil. (Fueling Terror) Increasing the United States’ oil production would give OPEC less of an opportunity to fix prices because demand for their product would fall. The peak oil production of ANWR is estimated to be up to 1.45 million barrels per day; that’s 1.45 million barrels of oil that OPEC would have to find another buyer for. They would either have to lower prices or production as a result of the flooded market. (Hastings) Currently the United States imports 4.885 million barrels of oil from OPEC daily. If we produced 1.45 million more barrels of oil per day we could cut our OPEC imports by more than twenty-five percent. (Petroleum Statistics) At $100 dollars per barrel that would be 145 million dollars that would stay in the United States every day; instead of being sent to countries that sponsor terrorism and reject basic human rights. Oil is fifty percent of Iran’s gross domestic product, fueling their ability to procure

As the global population increases and developing nations seek to emulate the consumer consumption of their Western counterparts, demand for fossil fuels and alternative energy sources continues to increase apace (Tracey et al, 2011). OPEC

Our world economy depends upon petroleum; petroleum, in fact, has shaped the modern world. It has dictated production technologies and methods. It has facilitated the emergence of a worldwide transportation network. It has allowed cites to grow and expand, and determined the spatial landscape of regions. Due to our great need for petroleum, the scope of OPEC¡¦s power surpasses our prowess as an economic superpower, considering OPEC regulates the output and the price of oil from their reserves.

In 1973 the irritation became an outrage due to a surprise attack from Egypt, an attempt to recapture territory in the Sinai Peninsula from Israel. Although it lasted only six days, Gulf oil producers were aggravated when the United States’ choice to supply arms to allied-Israeli military after the attack. In response, Saudi Arabia led an embargo of the United States that restricted oil exports and raising prices. These turn of events was where OPEC first demonstrated its power. The embargo neglected America’s need of imported oil from OPEC, which forced domestic production to intensify. With no incoming oil imports, America focused on lowering oil prices for their citizens, (See appendix IV) as well as their dependency on foreign commodities. The House of Representatives passed a bill that demanded that no one person could export American crude oil for the next one hundred and eighty days. The Arab Embargo quadrupled American oil prices and raised retail gas prices by forty percent. The Embargo Act’s impact on domestic politics concerned American policy makers, who were pursuading leaders of OPEC to reinvest in Western products, especially American weapons. The embargo was lifted, but the United States was now more deeply planted in Middle Eastern

In this way, the Fed manages price inflation in the economy. So bonds affect the U.S. economy by determining interest rates. This affects the amount of liquidity. This determines how easy or difficult it is to buy things on credit, take out loans for cars, houses or education, and expand businesses. In other words, bonds affect everything in the economy. Treasury bonds impact the economy by providing extra spending money for the government and consumers. This is because Treasury bonds are essentially a loan to the government that is usually purchased by domestic consumers. However, for a variety of reasons, foreign governments have been purchasing a larger percentage of Treasury bonds, in effect providing the U.S. government with a loan. This allows the government to spend more, which stimulates the economy. Treasury bonds also help the consumer. When there is a great demand for bonds, it lowers the interest rate.