What is OPEC? Nov 05 '02    Write an essay on this topic. Tweet Popular Products in Books Mildred D. Taylor - Roll of Thunder, Hear My Cry: A Literature Unit From $8 Olivier Dunrea - Ollie From $7 The Bottom Line OPEC is no ordinary organization. This organization not only has the power to control our gas prices, but the power to control our political climate as well. OPEC, or the Organization of Petroleum Exporting Countries, was founded in 1960. Specifically, it is an international association that creates crude-oil policies among its members. The "members" in this case, are called the Conference. Each of the members of the conference represent their respective countries. The board of governors implements resolutions of the Conference and manages the organization. Currently, there are 11 countries. 1====Iraq 2====Kuwait 3====Saudi Arabia 4====Libya 5====Qatar 6====United Arab Emirates 7====Venezuela 8====Indonesia 9====Algeria 10===Iran 11===Nigeria In the late 1950's, many cars on U.S. roads were large gas-guzzling vehicles. Fortunately for many people, however, the world's oil production actually EXCEEDED demand. As a result of this, the price of oil (which at the time was controlled by the oil companies themselves), dropped considerably. Though this meant $aving$ for the average consumer, oil-producing countries were left with less revenue for their valuable product. In reaction to the sudden drop in payments, OPEC was formed. In the 1970's, non-OPEC country's oil supplies diminished, and as a result, OPEC then raised the price of oil per barrel. This, combined with rising insurance prices, helped to virtually kill off my favorite type of car, the "muscle car". In order to create higher income for their respective countries, some OPEC nations created "production ceilings" which in effect limited the amount of oil a certain nation could have. In 1973, OPEC used this "production ceiling" as a political statement. For example, countries that supported Israel in the Arab-Israeli War, had their oil supplies virtually halted. This malicious tactic resulted in oil and gasoline shortages throughout many Western countries, which in turn resulted in the tripling of gas prices!

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