OPEC - Group C International Business The West is heavily dependent on oil reserves in the Middle East The largest consumers and importers of oil are

OPEC - Group C International Business The West is heavily...

This preview shows page 1 - 3 out of 5 pages.

Group C International Business The West is heavily dependent on oil reserves in the Middle East. The largest consumers and importers of oil are China, India and the United-States. According to current estimates, more than three-quarters of the world’s oil reserves are located in OPEC countries. OPEC oil reserves is located in the Middle East such as Saudi Arabia, Iran and Iraq. Iraq contributes 56% to the OPEC total. The United-States is the largest oil importer in the world importing in millions of oil barrels per day. Oil from the Middle East (specifically the Persian Gulf) accounts for 17 percent of U.S. oil imports, and this dependence is growing. The Persian Gulf has an output capacity of 22.7 billion barrels per day, 27 percent of the world's oil supply, and contains about 679 billion barrels of proven oil reserves, about 66 percent of world oil reserves. The region also holds 91 percent of the world's excess oil capacity and can compensate for oil unavailable during disruptions of trade. By 2017, the U.S. will be importing an estimate 68% of its oil needs. Oil consumption represents 40 percent of America's energy needs, primarily used in ground and air transportation. The dependence of the U.S. and the global economy on oil is growing, which can have dire consequences for the economic well-being of the United States, our national security, and the American way of life. On September 14, 1960 Iran, Iraq, Kuwait, Venezuela, led by Saudi Arabia formed the Organization of the Petroleum Exporting Countries in Baghdad. Since then the United Arab Emirates, Algeria, Libya, Angola, Indonesia, Qatar, and soon Ecuador have joined. On the official OPEC web site it states its mission "is to coordinate and unify the petroleum policies of member countries and ensure the stabilization of oil markets in order to secure an efficient, economic, and regular supply of petroleum to
Image of page 1
consumers, a steady income to producers, and a fair return on capital to those investing in the petroleum industry.
Image of page 2
Image of page 3

You've reached the end of your free preview.

Want to read all 5 pages?

  • Spring '08
  • Pisani
  • OPEC

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes