Blog
Revision: OPEC
7th April 2008
This revision note focuses on the role of OPEC in the global oil market.
What is OPEC?
A producer cartel founded in 1960 – now has thirteen members although several other countries are considering becoming members (and Indonesia’s place in under threat)
Controls around 45% of world crude oil output (compared to 55% in the mid 1970s) and just over half of world oil exports
But has a larger share of world crude oil reserves (long run importance?)
Controls it’s own supply through a system of output quotas
Many of the OPEC nations have accumulated huge FX reserves as the world price of oil has soared – contributing to the growing power of sovereign welfare funds
The UK is a net importer of oil, along with Norway and the USA it is not part of OPEC
Revision note
Revision_OPEC_Oil_Prices.pdf
Accompanying PowerPoint charts
OPEC.ppt
Geoff Riley
Geoff Riley FRSA has been teaching Economics for over thirty years. He has over twenty years experience as Head of Economics at leading schools. He writes extensively and is a contributor and presenter on CPD conferences in the UK and overseas.