Podcast
Questions and Answers
What is the primary purpose of OPEC as an organization?
What is the primary purpose of OPEC as an organization?
Which of the following is NOT one of the founding members of OPEC?
Which of the following is NOT one of the founding members of OPEC?
How much of the world’s crude oil production is supplied by OPEC?
How much of the world’s crude oil production is supplied by OPEC?
What is a potential disadvantage of OPEC's cartel structure?
What is a potential disadvantage of OPEC's cartel structure?
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What characteristic describes the type of organization OPEC is?
What characteristic describes the type of organization OPEC is?
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Which of the following is a key advantage of OPEC's existence?
Which of the following is a key advantage of OPEC's existence?
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Which of the following countries is a full member of OPEC but not a founding member?
Which of the following countries is a full member of OPEC but not a founding member?
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What percentage of the world's proven crude oil reserves does OPEC control?
What percentage of the world's proven crude oil reserves does OPEC control?
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Study Notes
OPEC Overview
- OPEC is a cartel of 13 major oil-exporting nations.
- OPEC controls over 80% of the world's proven crude oil reserves.
- OPEC supplies over 40% of the world's crude oil production.
- Founded in 1960, OPEC aims to coordinate petroleum policies and provide economic aid to members.
- OPEC aims to manage oil supply to stabilize prices and prevent fluctuations that could harm producer and consumer economies.
- OPEC's founding members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
- Other OPEC members: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya, Nigeria, and United Arab Emirates.
OPEC Goals
- To maintain profitable oil prices for member nations while minimizing market restrictions.
- To ensure consistent income for members through uninterrupted oil supply.
OPEC Advantages
- Promotes cooperation among member nations, potentially reducing political hostilities.
- Exerts influence over production from non-member countries.
OPEC Disadvantages
- As a cartel, OPEC members have a strong incentive to maximize oil prices while maintaining their market share.
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Description
This quiz explores the Organization of the Petroleum Exporting Countries (OPEC), a coalition of major oil-exporting nations. Learn about its founding, goals, advantages, and influence on the global oil market. Test your knowledge on OPEC's significant role in stabilizing oil prices and coordinating policies among its members.
