OPEC

Think about … in all the world, which country do you think consumes the MOST oil?

Where do you think most of the world’s

oil is located?

NOTE … is there oil in

Israel?

Therefore, where do you think the US gets most of

it’s oil?

OPEC

In 1960, OPEC was formed!

What is OPEC?

What is OPEC?•Organization of •Petroleum •Exporting •Countries

Based on your knowledge of the Middle East and what you just learned about oil deposits, which countries do you think are members of OPEC?

Ponder … why would these

countries unite and form this organization?

• Think about …–What would be their motivation? Their purpose? –What would they gain?

Let’s do a little experiment …

How can I make MORE money?

Why was OPEC formed?

• To protect the interests of the oil-producing countries.–OPEC allows these oil-producing

countries to set prices for the crude oil–By taking COMPETITION out of the

market, they can get whatever price they want!

Who were the original members?

• Iran• Iraq•Kuwait•Saudi Arabia•Venezuela

Who are members of OPEC today?

• The original 5 plus –Algeria–Angola–Indonesia–Libya–Nigeria–Qatar–UAE

Just a few more facts …

• 2/3’s of the world’s oil belongs to OPEC members!•OPEC members own ½ of the world’s exported oil!

OPEC

What is OPEC?

When did it begin?

Who were the original 5 members?

Why? (For what purpose was OPEC formed?)

Are your notes

correct?

Great! Let’s go

to our

assignment!

Your turn …• Writing assignment - –If you were an oil-producing country, would you join OPEC? Why? EXPLAIN your answer! Think about … what would be the benefits of joining this organization? What would be the disadvantages if you did NOT join this organization?

OPEC

What is OPEC?

When did it begin?

Who were the original 5 members?

Why? (For what purpose was OPEC formed?)