Key players in supplying future oil-OPEC Flashcards
1
Q
Main aim of OPEC
A
-OPEC was formed in 1960 to protect the interests of oil-producing
companies and have formed what some view as a CARTEL.
-Its sets
oil production quotas for its members in response to economic growth rates and demand-and-supply conditions. It therefore aims to ensure fair and stable prices
for its members.
2
Q
Facts
A
At the end of 2006, the OPEC members had over 78% of the world’s total oil reserves and they
produce around 45% of the world’s crude oil and 18% of its natural gas
3
Q
Why has OPEC been criticised?
A
-OPEC is criticised that it controls the price of oil as it is worried that increasing the supply of oil
would mean investors would stop investing causing a collapse in the price.
