The Oil Industry and the OPEC Organization

The Oil Cartel.

The whole world produces more than 84 million barrels a day, 40% of which are being produced by the OPEC, the powerful oil-producing countries organisation. What do we know about the earth’s oil reserves? Here is a quick look at some unbelievable facts concerning oil and the OPEC organization.

The OPEC Organization.

This organization comprises 13 members: Saudi Arabia, Qatar, Kuwait, Iraq, Iran, Algeria, Libya, Nigeria, Angola, Venezuela, Ecuador, Gabon and Indonesia. Together, they hold more than 80% of all the oil reserves on earth.

Consequences of the latest deal.

Recently, they reduction of their production output has caused oil prices to surge, as the demand for oil is likely to increase as a result of such move.

The biggest winners of this deal are oil-producing countries such as OPEC organization members and other oil-producing countries such as China, Canada and Russia. The biggest losers, people like you and I who are going to experience the increased cost of gasoline at the gas station. Airlines would experience additional expenses as well, meaning that there is a good chance that your flight ticket is going to rise in price.

opec-organization

OPEC Members

Saudi Arabia.

The country is the leading oil producer of the OPEC organization, as well as the whole world. It currently holds 267 billion barrels of crude oil in its reserves. That being said, they basically have the ability to supply the entire world with oil for 9 years.

They have a daily production of 10 million barrels per day, so given the current oil prices, these are worth more than half billion dollars of daily exports.

saudi-king

Saudi King.

The United States.

The country produces nearly 9 million barrels a day, but consumes more than 19 million barrels daily. Thus, they have to import 10 million barrels daily to keep up with the demand. In other words, America spends at least half billion dollars everyday for oil import.

They run more than 200,000 miles of oil pipelines within the country. They have oil reserves that can last 8 years of consumption, given the current rates.

The biggest oil spill that took place in history was the Deep water horizon oil spill, responsible for pouring 4.2 million barrels of oil into the gulf of mexico, thus a 300 million dollars loss of product, and devastating repercussions on the environment.

usa

US Map

The Need for Alternate Energy.

We have become so dependent on oil, that if for some reasons, we are unable to produce oil in a near future, Mankind would face the apocalypse. No more cars, no more travel, no more power and so on, it would be a total disaster. The OPEC organisation has the power to bring that apocalypse by shutting down production. This would result in an extravagant increase of crude oil prices, making worldwide economies collapse.

Comments
Leave a Reply

*

%d bloggers like this:
Skip to toolbar