June2018 paper 3

What is OPEC?

• An organisation of 13 oil-producing countries

• A global financial institution

• A renewable energy company

• A technology firm

As of 2015, what percentage of the world's proven oil reserves was accounted for by OPEC?

• 65%

• 55%

• 42%

• 73%

Which country is not a member of OPEC?

• Iran

• Brazil

• Kuwait

• Iraq

What significant change is affecting the energy market?

• Shift from coal to natural gas and renewables

• Decrease in oil consumption

• Reduction in global energy demand

• Increase in nuclear energy use

What was a major consequence of the shale revolution in the US?

• Reduction in natural gas prices only

• Increase in oil and gas supply

• Growth in coal production

• Decrease in renewable energy investments

Why did Saudi Arabia and other OPEC countries not cut oil production in 2014 despite falling prices?

• To support renewable energy initiatives

• To immediately increase their own revenues

• To challenge the profitability of US shale oil production

• To increase global oil demand

What economic effect does a fall in oil prices have on oil-exporting countries?

• Contraction of the oil sector

• Expansion of the tourism sector

• Immediate improvement in trade balances

• Increase in import costs only

What was the inflation rate in Nigeria in 2016?

• 18.6%

• 12%

• 10%

• 15%

How much of Venezuela's export earnings come from oil-related sectors?

• Less than 40%

• Over 95%

• About 75%

• Around 50%

What was the estimated contraction of Venezuela's economy in 2016?

• 20%

• 15%

• 10%

• 5%