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What is OPEC?

Frequently asked questions about crude oilFrequently asked questions about OPECFrequently asked questions about the petroleum industry

The organization of the Petroleum Exporting Countries (OPEC) is a permanent inter-governmental organization, currently made up of 11 oil producing and exporting countries, spread across three continents America, Asia and Africa. The members are Algeria, Indonesia, the Islamic Republic of Iran, Iraq, Kuwait, the Socialist People’s Libyan Arab Jamahiriya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates & Venezuela.

These countries have a total population of about 545 million and for nearly all of them, oil is the main marketable commodity and foreign exchange earner. Thus, for these countries, oil is the vital key to development – economic, social and political. Their oil revenues are used not only to expand their economic and industrial base, but also to provide their people with jobs, education, health care and a decent standard of living.

The organization’s principal objectives are:

1. To co-ordinate and unify the petroleum policies of the Member Countries and to determine the best means for safeguarding their individual and collective interests;

2. To seek ways and means of ensuring the stabilization of prices in international oil markets, with a view to eliminating harmful and unnecessary fluctuations; and

3. To provide an efficient economic and regular supply of petroleum to consuming nations and a fair return on capital to those investing in the petroleum industry.

The Organization of the Petroleum Exporting Companies (OPEC) was created in 1960 to unify and protect the interests of oil-producing countries. OPEC allows oil-producing countries to guarantee their income by coordinating policies and prices among them. This unified front was created primarily in response to the efforts of Western oil companies to drive oil prices down. The original members of OPEC included Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. OPEC has since expanded to include six more countries, making a total membership of 11.

OPEC represents a considerable political and economical force. Two-thirds of the oil reserves in the world belong to OPEC members; likewise, OPEC countries are responsible for half of the world's oil exports. The fact that OPEC controls the availability of a substance so universally sought after by modern society renders the organization a force to be reckoned with.

The first display of the effect OPEC power could have on the world's politics was in the 1970s. When the Yom Kippur War exploded in the Middle East, the United States assisted Israel in defending itself against the Egyptian and Syrian armies. In what may have been a response to this interference in the war, OPEC instituted an oil embargo that targeted the United States and its European allies. The embargo lasted from October 19, 1973 to March 17, 1974.

The effects of the OPEC oil embargo were widespread. Immediate effects included inflation and economic recession in the United States and other countries targeted by the embargo. Car owners in the United States were restricted to specific days on which they could purchase gasoline: even dates for cars with even-numbered license plates, and odd dates for cars with odd-numbered license plates.

A national law introducing more restrictive speed limits was instituted, as well as a year-round Daylight Savings Time. The OPEC oil embargo also drove auto manufacturers to produce smaller and more fuel-efficient vehicles. Even after the embargo ended, oil prices continued to rise, and the United States economy continued to suffer.

Although OPEC is often seen as a villain in the political arena, the organization serves an important purpose. OPEC prevents its members from being taken advantage of by industrialized countries, by ensuring that oil-exporting countries are paid a fair price for crude oil. Because oil-exporting countries are dependent on industrialized countries for oil products, OPEC standards prevent industrialized countries from buying crude oil at rock-bottom prices, then turning around and selling oil products back at vastly inflated prices.


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repairing-building-contractor

repairing-building-contractor · If building your own house is so great, why aren’t more people doing it? That’s a good question. I’ve wondered that for about the last ten years. I know when I was building my house I was very apprehensive about the whole thing. I remember thinking, “This can’t be as good a deal as it seems. Soon I’ll find out why more people don’t do it.” But you know what? That day never came. The project cost a little more than I had planned, but not much more. It was a lot of hard work, but it felt good to work hard on something I hoped would be a good thing. Now, after counseling others to do the same and seeing their success, the question is still unanswered.

I really don’t have a good answer for that. I suppose it has something to do with people not knowing all the facts. People don’t care about the facts because the thought of them putting on the tool belt and doing something so far beyond them doesn’t even merit consideration in their minds. They are self-defeating and certainly don’t consider themselves competent to undertake such a big project. To those of us who dare to dream and actually do something to reach our dreams, the reward is there waiting for us. Rewards that are not only financial, but emotional as well. It is so satisfying to see a project through to the end and watch the appraisers actually put a dollar amount on your sweat equity. It was so amazing to me how much my hard work was worth. That equity is valuable to me as a homeowner.

A few years before I built my house, I remember reading somewhere that if a person did all his or her own work instead of hiring it out, that person could save as much as 30% on the cost of the house. I thought to myself, “Man, that’s not worth busting my hump just to save 30%.” I asked my friend that had built his own house, if that was correct. He said, “That’s hogwash, you’ll save almost 2/3 the cost of the house if you do everything yourself.” So, I went on faith and did my own construction and my numbers speak for themselves. It worked out that my savings came in at a little over 60%. That’s really good equity.

 

· Dealing with inspectors is too much of a pain; I hate it when other people tell me what I can or can’t do. It’s hard getting told what to do. I remember having a particularly mean teacher in school when I was in the sixth grade. Man, that teacher was pure evil. She had armor-piercing eyes and a nasty disposition. In this day, a teacher like that would be drawn and quartered by the parents or the superintendent the first day of class, but in those days, strict teachers that used a paddle were heroes to the parents. I think it was right around that time in my life that I developed a big dislike for authority. I’m cool with supervisors and foremen as long as they are doing what’s right and are acting in the best interest of the company and the employee. I just really hate it when people tell me that I’ve screwed up and that’s what inspectors get paid to do. They’re nice about it though. One Electrical Inspector even told me, “I don’t really care about rules and regulations; I just don’t want you and your family to burn up.” How can you argue with that? The subject of inspectors is one I’ve beat on too many times already. You can’t argue with them because it won’t get you anywhere. It’s their plump rump on the line if something goes wrong with a new dwelling. We all hate being told what to do, but sometimes it’s for our own good. I still think that teacher was evil though. No doubt about it. · You have to be smart to build a house.

I’m a man of average intelligence (and that’s a stretch). I know a lot of carpenters and tradesmen, but I don’t think any of them design rockets for NASA or teach Astrophysics in the evening. Building a house doesn’t take a lot of intelligence but you do have to have the ability to concentrate on what you’re doing. Some of my biggest and costliest mistakes were made because I was thinking about other things. Making mistakes is all right as long as they’re not mistakes that injure you. When I’m doing work with a circular saw however; it gets my complete, undivided attention. You know, I used to work around all kinds of saws. Some were huge circular saws six feet in diameter. Others were double-edged band saws forty feet long and


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