The importance of oil and the creation of the OPEP

The importance of oil and the creation of the OPEC

Teacher Edgar Jaimes

Let´s have a little talk about oil

What is it?

Why is it important?

How do we get it?

Open Ended

What is oil for, besides making gasoline?

Let´s reflect about this: What or who determines the price of the oil?

1960: OPEC´s creation

• OPEC stands for Organization of the Petroleum Exporting Countries, and it was created on September 14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

• These countries own nearly half of the world's oil production, so they meet at Bagdad to join forces and be able to recover and manage the earnings from exporting it.

So, what is OPEC main objective?

• It was created to resist the control that some american and brittish companies had over the oil and the price they pay for it.

• OPEC countries meet constantly to define oil prices and production, trying to have enough production at a fair price.

Some of OPEC milestones

• 1973, OPEC embargo against US and European countries.

• Original members had a superlative economic growth caused by the oil earnings.

• As an intergovernmental organization, it achieved a join effort of its full members

Let's see a video resume of OPEC history

Now, we can have a final reflection on OPEC role in the modern world