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

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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
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consumers, a steady income to producers, and a fair return on capital to those investing in the petroleum industry. The OPEC nations produce about 40% of all oil production in the world, and export
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This essay was uploaded on 04/08/2008 for the course INT 201 taught by Professor Pisani during the Spring '08 term at SUNY Rockland.

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

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