OPEC's Influence and Functions

The video introduces OPEC, the Organization of the Petroleum Exporting Countries, formed in 1960 to protect oil-producing nations' interests. Initially comprising five countries, OPEC expanded to 12 members, controlling a significant portion of global oil reserves and exports. The video highlights OPEC's political and economic influence, notably during the 1973 oil embargo, which led to inflation and recession in targeted countries. Despite criticism, OPEC ensures fair pricing for its members, preventing exploitation by industrialized nations.

What was the primary reason for the creation of OPEC in 1960?

• To support Western oil companies

• To decrease oil prices

• To increase oil production

• To unify and protect the interests of oil-producing countries

Which of the following countries was NOT an original member of OPEC?

• Iran

• Saudi Arabia

• Venezuela

• Algeria

How many countries are currently members of OPEC?

• 5

• 12

• 15

• 20

What percentage of the world's oil reserves is controlled by OPEC members?

• Two-thirds

• One-third

• Three-quarters

• Half

What event in the 1970s demonstrated OPEC's influence on global politics?

• The Gulf War

• The Yom Kippur War

• The Vietnam War

• The Korean War

What was one immediate effect of the OPEC oil embargo in the 1970s?

• Economic recession in targeted countries

• Decrease in oil prices

• Increase in oil production

• Stability in global markets

How is OPEC often perceived in the political arena?

• As a villain

• As a supporter of industrialized countries

• As a neutral entity

• As a hero

What is one of the main purposes of OPEC?

• To support industrialized countries

• To decrease oil exports

• To increase oil consumption

• To ensure fair pricing for crude oil

Why are OPEC standards important for oil-exporting countries?

• They allow for unlimited oil production

• They reduce oil prices significantly

• They prevent exploitation by industrialized countries

• They increase dependency on Western oil companies

What do OPEC standards prevent industrialized countries from doing?

• Increasing oil production

• Buying crude oil at low prices and selling products at high prices

• Selling oil products at low prices

• Buying crude oil at high prices