Respond to question in Outline Format (and please type your response). Choose ON

Question

Respond to question in Outline Format (and please type your response).

Choose ONE from the following questions about the challenges facing the oil industry:

*What are the top 2 challenges that led to the formation of OPEC?

*Choose between Iran & Saudi Arabia - What gave one strength in influencing the course of OPEC?

*What top challenges did Europe face in their access to oil post WWII?

*What was the top innovation in use of oil - developed in 1950s?

*Explain the one top challenge the world market faces throughout the Arab-Israeli conflict?

*Compare the challenges with Coal and Oil

*What is the impact from new sources of oil? Choose between the North Sea or Natural Gas or Algeria or Libya.

Use the OREO elements -

Opinion - your opinion on the question

Reason & Facts - to back up your opinion

Explanation of how the facts correspond to your opinion

Opinion - short concise re-statement

Instead of writing a full paragraph, submit an outline of what your paragraph response would cover. Required headings: A- My Opinion B - Example or Fact 1 1. - supporting idea 2.-connect to next point C - Example or Fact 2 1.- supporting idea 2. connect to question D-Summary 1. - connect B to opinion 2. connect C to opinion Citation for B Citation for C

Explanation / Answer

Question: What are the top 2 challenges that led to the formation of OPEC?

Answer:

OPEC (ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES) is an intergovernmental organization whose objective is to provide an efficient economic and regular supply of petroleum to all consuming nations around the world.

The reason why OPEC was formed is that OIL is the vital key to development in these particular countries. The organization initial intention was to develop the countries economically, socially and politically and make them strong. The other reason for the formation of OPEC is to stable oil market, give reasonable prices and steady supplies to consumers.

In my opinion OPEC is an good initiative which is set up to make sure that the price of oil in the world market will be properly controlled. The known fact is that oil is a NON-RENEWABLE resource, which means if we are out of oil the supply stops and there is no way to make more.

These particular 12 countries which are members in OPEC are key to development as they produce and export oil efficiently, the respected 12 countries are:

1. IRAN from Middle East joined in 1960

2. IRAQ from Middle East joined in 1960

3. ALGERIA from Africa joined in 1969

4. ANGOLA from Africa joined in 2007

5. ECUADOR from South America joined in 2007(rejoin)

6. KUWAIT from Middle East joined in 1960

7. LIBYA from Africa joined in 1961

8. QATAR from Middle East joined in 1962

9. NIGERIA from Africa joined in 1971

10. SAUDI ARABIA from Middle East joined in 1960

11. VENEZUELA from South America joined in 1960

12. UNITED ARAB EMIRATES from Middle East joined in 1967

Interesting fact is that 42% of the entire world's oil production comes from OPEC and remains as world's petroleum superpower because OPEC literally controls 80% of total world's oil reserves. Saddest fact is that even though OPEC is so powerful, this organization doesn't usually set oil prices and they are controlled by some other external forces, thus by which the prices continuously do increase.

Actually the main goal of OPEC is to prevent drastic increase in the price of oil in the national market and make sure that the particular nations which produce the oil do have fair profits. But unfortunately what I feel is the organization now a days are only concerned about profits and the oil prices are increasing continuously particularly in Asia and there are no price drops in around recent 5 years of span. If this price hike continues in future, then people do increase usage of hybrid cars, no wonder if some prefer bicycle over motor bike. As they are inexpensive and benefit environment because they don't release harmful gases into the atmosphere like fuel vehicle does.

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