Energy Players

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OPEC:

12 members;

Algeria

Angola

Ecuador

Iran

Iraq

Kuwait

Libya

Nigeria

Qatar

Saudi Arabia

United Arab Emirates

Venezuela

They aim to;

Protect the interests of member countries (individually or as a group)

Stabilise oil prices and attempt to remove price fluctuations

Ensure an efficient, economic and regular supply to consumer nations

Saudi Arabia remains largest exporter - biggest customer is Asia Pacific (China)

Exports from Africa have increased e.g. Algeria

US gets oil from Latin America (Venezuela) supply from Middle East reduced - political, radical technology

OPEC and Politics:

Oil and gas companies have long been contributing to US politics

In 2008 oil and gas was 17th on the contributions list for political funding

Republicans have benefited the most from these contributions

OPEC is a cartel - an agreement between countries to fix the price of oil

Advantages:

Producers can gain monopoly

Price elastic - demand is high so they can charge what they want

Takes competition out for consumers

Disadvantages:

Prices have to stay the same so disadvantage for lower countries - have to sell at that price

Price inelastic - if demand falls price has to fall

Consumers aren't energy secure