OPEC essays

OPEC essays OPEC affects the American economy. It influences the economy due to oil consumption of many Americans. We use oil in everyday life. It is used in cars and jobs all across the United States. Many machineries use oil to power our electrical appliances. Since most young Americans dont even know what OPEC is, I will give you a brief synopsis of it. OPEC is a voluntary intergovernmental organization that co-ordinates and unifies the petroleum policies of its member countries (opec.org). Open seeks to insure the stabilization of oil prices in international markets with a view to eliminating harmful fluctuations with regard given at all times to securing a steady income for all. They must also have a secure capital for those investing in the petroleum industry. OPEC was formed at a meeting held on September 14, 1960 in Baghdad, Iraq, by five founding members. These members were Iran, Iraq, Kuwaiti, Saudi Arabia, and Venezuela. The United States has never been a member of OPEC although in 1996 they produced 6.5 million barrels of oil per day, which makes it the worlds third largest producer. The reason for the United States government not becoming a part of OPEC is their conflicting standpoints regarding oil exportation. To become a constituent of OPEC you must have a substantial net export of crude petroleum. A majority of at least three-fourth in the OPEC organization also must accept you. There are three different categories of members. There are those who are founding members, which consist of the six original members. The remaining is one of either full member or associate members. Those that are associate members of a country do not qualify for full membership but which is nevertheless admitted under special conditions as maybe prescribed by the conference (MacAvoy 84). There are currently eleven OPEC member countries. The OPEC conference of ministries meets in ordinary sessions twice a ...