Gas War :: essays papers

Gas struggle Gasoline is produced by a distillation process where complete(a) crude vegetable oil colour is heated and fumes are captured and converted into many products such as kerosene, jet fuel, and gasoline to name a few. Therefore the price of crude oil, which is extracted from oil wells beneath the earths surface, is a major factor in gas prices. The five leading oil-producing countries and their approximate shares of the world supply of oil are Soviet Union 21%, Saudi Arabia 17%, The united States 15%, Venezuela 4%, and Mexico 4%. These five countries made up 61 % of the worlds oil production back in 1980. Even though The unify States is a major producer of oil, it does not make them self-sufficient. The unify States uses to a greater extent oil than they can produce and must look towards foreign countries. An institution called O.P.E.C. subdues approximately four fifths of the worlds oil reserves in the non-communist world. The United States is compel to deal with O.P.E.C., not only in its own interests, but besides in the interest of its allies and in the interest of maintaining public security. The former Soviet Union may now have an interest in change some of their oil that they have a tremendous amount of. O.P.E.C. which stands for establishment of Petroleum Exporting Countries, is made up of 13 countries Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Gabon. O.P.E.C. was founded in Baghdad, Iraq in September of 1960. It was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before expectant their crude oil prices. The producers feared that other countries would establish monopolies. The aim of O.P.E.C. was to create a universal price between the countries, in order to ensure peace between oil producers throughout the world. O.P.E.C. also wanted to provide its members with proficient and economic suppo rt in times of need, since not all the countries were whole stable. The headquarters were initially set in Geneva, but were later travel to Vienna in 1965. O.P.E.C.s goal was to establish firmly merge prices amongst their members, but the organization was not always successful. In their quest for control over the world market of oil production, they have ran into several obstacles and setbacks. O.P.E.C. has that survived being eliminated due to internal conflicts amongst its members.