Organization of the Petroleum Exporting Countries. Why was OPEC formed? To protect the interests of the oil-producing countries. You just studied 7 terms!

In the economic literature, the Organization of the Petroleum Exporting Countries (OPEC) is usually treated as a monopoly and a cartel. As a matter of fact, a large number of microeconomic texts use OPEC as an example of the dominant firm.

Organization for the Petroleum Exporting Countries.

Members are Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, U.A.E, Nigeria, Equador, Angola, Algeria.

Realpolitik is a politics based on the needs of the state. Power was more important than the rule or belief governing one’s personal behavior. Otto Von Bismarck was a master of realpolitik.

When OPEC was formed in 1960, its main goal was to prevent its concessionaires—the world’s largest oil producers, refiners, and marketers—from lowering the price of oil, which they had always specified, or “posted.” OPEC members sought to gain greater control over oil prices by coordinating their production and export …

It is notable that some of the world’s largest oil producers, including Russia, China, and the United States, are not members of OPEC, which leaves them free to pursue their own objectives. Some of the world’s greatest oil-producing countries, such as Russia, China, and the U.S., do not belong to OPEC.

The United States is the world’s biggest oil consumer, followed by China, Japan and India.

Top ten countries with the largest oil reserves in 2019

1. Venezuela – 304 billion barrels.
2. Saudi Arabia – 298 billion barrels.
3. Canada – 170 billion barrels.
4. Iran – 156 billion barrels.
5. Iraq – 145 billion barrels.
6. Russia – 107 billion barrels.
7. Kuwait – 102 billion barrels.
8. United Arab Emirates – 98 billion barrels.

OPEC