Describe the market for oil including the large players in the oil industry before and after OPEC?
Using economic theory and empirical evidence analyse OPEC's effect on the world market for oil?
Critically examine the success or otherwise of OPEC in raising the price of oil?
What policy recommendations for the UN can be given as to how the market for oil can be made more efficient?
Table of Contents
CHAPTER 1: INTRODUCTION2
Background of the Research Study2
Aims and Objectives of the Research Study3
Problem Statement4
Significance of the Research Study4
Rationale of the Research Study7
Research Questions8
CHAPTER 2: LITERATURE REVIEW9
Theoretical Framework9
Characteristics of OPEC9
History of OPEC12
Changes in Economic and Political Factors14
Cartels and their Emergence16
Long-Term Stability18
Changes in Oil Prices19
Recent Developments21
Demand Security Needed22
Growth Observed23
OPEC and United Nations24
International Oil Companies and National Oil Companies25
CHAPTER THREE: RESEARCH METHODOLOGY37
Research Design44
CHAPTER FOUR: RESULTS , ANALYSIS AND DISCUSSION47
Algeria47
Egypt52
Libya58
Nigeria62
CHAPTER FIVE: CONCLUSION67
REFERENCES69
Chapter 1: Introduction
Background of the Research Study
The Organization of Petroleum Exporting Countries which is usually termed as OPEC is an important organization that has played major role in the market for oil in the whole world. The organization has been engaged in providing petroleum oil to major parts of the world like the United States and other countries. The countries that are involved in the Organization of Petroleum Exporting Countries are Saudi Arab, Kuwait, Venezuela, Yemen, Egypt, Iran, Iraq, Vienna, Nigeria, Algeria, Angola, Ecuador, Qatar and the United Arab Emirates. However, the main country that is involved in the regulatory practice of the OPEC is Saudi Arab. The OPEC is an international organization that has it's headquarter in Vienna. The organization held meetings on regular basis with the ministers of the member countries.
Different goals have been set by the organization however the main goal of the organization is the identification of the best possible ways for protecting the interest of the organization on the collective and individual basis. Other goals that are pursued by the organization are the stabilization in the prices of the oil in the international market and rectifying the problems that makes the prices of oil in the international market unstable. The organization also ensures that the member countries are earning stable income in the respective years. Similarly, the organization also takes care of the goals and objectives of the member countries while providing adequate levels of petroleum to the member countries at the same time. The organization also ensures that the member countries those are engaged in the investment activities in the OPEC are also getting reasonable revenues from them. Due to the attainment of all these goals, the organization has been very effective in setting the prices and providing petroleum oil to the importing countries. The organization has also proved to be very effective in setting the prices of the petroleum oil in the international market. Therefore, the role of OPEC has been criticized to large extent by different developing and developed countries that have gone through the effects of the raised prices of petroleum ...