The Organization of the Petroleum Exporting Countries Essay Example for Free

The Organization of the Petroleum Exporting Countries Essay The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) – suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. OPECs objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. The 1960s OPEC’s formation by five oil-producing developing countries in Baghdad in September 1960 occurred at a time of transition in the international economic and political landscape, with extensive decolonisation and the birth of many new independent states in the developing world. The international oil market was dominated by the â€Å"Seven Sisters† multinational companies and was largely separate from that of the former Soviet Union (FSU) and other centrally planned economies (CPEs). OPEC developed its collective vision, set up its objectives and established its Secretariat, first in Geneva and then, in 1965, in Vienna. It adopted a ‘Declaratory Statement of Petroleum Policy in Member Countries’ in 1968, which emphasised the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development. Membership grew to ten by 1969. The 1970s OPEC rose to international prominence during this decade, as its Member Countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. On two occasions, oil prices rose steeply in a volatile market, triggered by the Arab oil embargo in 1973 and the outbreak of the Iranian Revolution in 1979. OPEC broadened its mandate with the first Summit of Heads of State and Government in Algiers in 1975, which addressed the plight of the poorer nations and called for a new era of cooperation in international relations, in the interests of world economic development and stability. This led to the establishment of the OPEC Fund for International Development in 1976. Member Countries embarked on ambitious socio-economic development schemes. Membership grew to 13 by 1975. The 1980s After reaching record levels early in the decade, prices began to weaken, before crashing in 1986, responding to a big oil glut and consumer shift away from this hydrocarbon. OPEC’s share of the smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. Prices rallied in the final part of the decade, but to around half the levels of the early part, and OPEC’s share of newly growing world output began to recover. This was supported by OPEC introducing a group production ceiling divided among Member Countries and a Reference Basket for pricing, as well as significant progress with OPEC/non-OPEC dialogue and cooperation, seen as essential for market stability and reasonable prices. Environmental issues emerged on the international energy agenda. The 1990s Prices moved less dramatically than in the 1970s and 1980s, and timely OPEC action reduced the market impact of Middle East hostilities in 1990–91. But excessive volatility and general price weakness dominated the decade, and the South-East Asian economic downturn and mild Northern Hemisphere winter of 1998–99 saw prices back at 1986 levels. However, a solid recovery followed in a more integrated oil market, which was adjusting to the post-Soviet world, greater regionalism, globalisation, the communications revolution and other high-tech trends. Breakthroughs in producer-consumer dialogue matched continued advances in OPEC/non-OPEC relations. As the United Nations-sponsored climate change negotiations gathered momentum, after the Earth Summit of 1992, OPEC sought fairness, balance and realism in the treatment of oil supply. One country left OPEC, while another suspended its Membership. The 2000s An innovative OPEC oil price band mechanism helped strengthen and stabilise crude prices in the early years of the decade. But a combination of market forces, speculation and other factors transformed the situation in 2004, pushing up prices and increasing volatility in a well-supplied crude market. Oil was used increasingly as an asset class. Prices soared to record levels in mid-2008, before collapsing in the emerging global financial turmoil and economic recession. OPEC became prominent in supporting the oil sector, as part of global efforts to address the economic crisis. OPEC’s second and third summits in Caracas and Riyadh in 2000 and 2007 established stable energy markets, sustainable development and the environment as three guiding themes, and it adopted a comprehensive long-term strategy in 2005. One country joined OPEC, another reactivated its Membership and a third suspended it. Venezuela and Iran were the first countries to move towards the establishment of OPEC in the 1960s by approaching Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations.[citation needed] The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Later members include Algeria, Angola, Ecuador, Gabon, Indonesia, Libya, Qatar, Nigeria, and the United Arab Emirates. In 10–14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Perez Alfonso and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries.[citation needed][6][7] Oil exports imports differenceOPEC was founded to unify and coordinate members petroleum policies. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were early members of OPEC, but Ecuador withdrew on December 31, 1992[8] because it was unwilling or unable to pay a $2 million membership fee and felt that it needed to produce more oil than it was allowed to under the OPEC quota,[9] although it rejoined in October 2007. Similar concerns prompted Gabon to suspend membership in January 1995.[10] Angola joined on the first day of 2007. Norway and Russia have attended OPEC meetings as observers. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPECs Secretary General, recently asked Sudan to join.[11] Iraq remains a member of OPEC, but Iraqi production has not been a part of any OPEC quota agreements since March 1998. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota.[12] A statement released by OPEC on 10 September 2008 confirmed Indonesias withdrawal, noting that it regretfully accepted the wish of Indonesia to suspend its full Membership in the Organization and recorded its hope that the Country would be in a position to rejoin the Organization in the not too distant future. [13] Indonesia is still exporting light, sweet crude oil and importing heavier, more sour crude oil to take advantage of price differentials (import is greater than export). 1973 oil embargo[edit]Main article: 1973 oil crisis In October 1973, OPEC declared an oil embargo in response to the United States and Western Europes support of Israel in the Yom Kippur War of 1973. The result was a rise in oil prices from $3 per barrel to $12 and the commencement of gas rationing. Other factors in the rise in gasoline prices was the peak of oil production in the United States around 1970 and the devaluation of the U.S. dollar.[14] U.S. gas stations put a limit on the amount of gasoline that could be dispensed, closed on Sundays, and limited the days gasoline could be purchased based on license plates. Even after the embargo concluded, prices continued to rise.[15] The Oil Embargo of 1973 had a lasting effect on the United States. U.S. citizens began purchasing smaller cars that were more fuel efficient.[citation needed] The Federal government got involved first with President Richard Nixon recommending citizens reduce their speed for the sake of conservation, and later Congress issuing a 55 mph limit at the end of 1973. This change decreased consumption[citation needed] as well as crash fatalities[citation needed]. Daylight savings time was extended year round to reduce electrical use in the American home. Nixon also formed the Energy Department as a cabinet office.[citation needed] People were asked to decrease their thermostats to 65 degrees and factories changed their main energy supply to coal. One of the most lasting effects of the 1973 oil embargo was a global economic recession. Unemployment rose to the highest percentage on record while inflation also spiked. Consumer interest in large gas guzzling vehicles fell and production dropped. Although the embargo only lasted a year, during that time oil prices had quadrupled and OPEC nations discovered that their oil could be used as both a political and economic weapon against other nations 1975 hostage incident[edit]Main article: OPEC siege This section needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2011) On 21 December 1975, Ahmed Zaki Yamani and the other oil ministers of the members of OPEC were taken hostage by a six-person team led by terrorist Carlos the Jackal (which included Gabriele Krocher-Tiedemann and Hans-Joachim Klein), in Vienna, Austria, where the ministers were attending a meeting at the OPEC headquarters. Carlos planned to take over the conference by force and kidnap all eleven oil ministers in attendance and hold them for ransom, with the exception of Ahmed Zaki Yamani and Irans Jamshid Amuzegar, who were to be executed. Carlos led his six-person team past two police officers in the buildings lobby and up to the first floor, where a police officer, an Iraqi plain clothes security guard and a young Libyan economist were shot dead. As Carlos entered the conference room and fired shots in the ceiling, the delegates ducked under the table. The terrorists searched for Ahmed Zaki Yamani and then divided the sixty-three hostages into groups. Delegates of friendly countries were moved toward the door, neutrals were placed in the centre of the room and the enemies were placed along the back wall, next to a stack of explosives. This last group included those from Saudi Arabia, Iran, Qatar and the UAE. Carlos demanded a bus to be provided to take his group and the hostages to the airport, where a DC-9 airplane and crew would be waiting. In the meantime, Carlos briefed Yamani on his plan to eventually fly to Aden, where Yamani and Amuzegar would be killed. The bus was provided the following morning at 6.40 as requested and 42 hostages were boarded and taken to the airport. The group was airborne just after 9.00 and explosives placed under Yamanis seat. The plane first stopped in Algiers, where Carlos left the plane to meet with the Algierian Foreign minister. All 30 non-Arab hostages were released, excluding Amuzegar. The refueled plane left for Tripoli where there was trouble in acquiring another plane as had been planned. Carlos decided to instead return to Algiers and change to a Boeing 707, a plane large enough to fly to Baghdad nonstop. Ten more hostages were released before leaving. With only 10 hostages remaining, the Boeing 707 left for Algiers and arrived at 3.40 a.m. After leaving the plane to meet with the Algerians, Carlos talked with his colleagues in the front cabin of the plane and then told Yamani and Amuzegar that they would be released at mid-day. Carlos was then called from the plane a second time and returned after two hours. At this second meeting it is believed that Carlos held a phone conversation with Algerian President Houari Boumedienne who informed Carlos that the oil ministers deaths would result in an attack on the plane. Yamanis biography[citation needed] suggests that the Algerians had used a covert listening device on the front of the aircraft to overhear the earlier conversation between the terrorists, and found that Carlos had in fact still planned to murder the two oil ministers. Boumedienne must also have offered Carlos asylum at this time and possibly financial compensation for failing to complete his assignment. On returning to the plane Carlos stood before Yamani and Amuzegar and expressed his regret at not being able to murder them. He then told the hostages that he and his comrades would leave the plane after which they would all be free. After waiting for the terrorists to leave, Yamani and the other nine hostages followed and were taken to the airport by Algerian Foreign Minister Abdelaziz Bouteflika. The terrorists were present in the next lounge and Khalid, the Palestinian, asked to speak to Yamani. As his hand reached for his coat, Khalid was surrounded by guards and a gun was found concealed in a holster. Some time after the attack it was revealed by Carlos accomplices that the operation was commanded by Wadi Haddad, a Palestinian terrorist and founder of the Popular Front for the Liberation of Palestine. It was also claimed that the idea and funding came from an Arab president, widely thought to be Muammar al-Gaddafi. In the years following the OPEC raid, Bassam Abu Sharif and Klein claimed that Carlos had received a large sum of money in exchange for the safe release of the Arab hostages and had kept it for his personal use. There is still some uncertainty regarding the amount that changed hands but it is believed to be between US$20 million and US$50 million. The source of the money is also uncertain, but, according to Klein, it was from an Arab president. Carlos later told his lawyers that the money was paid by the Saudis on behalf of the Iranians and was, diverted en route and lost by the Revolution.[17] The 1980s oil gluts OPEC net oil export revenues for 1971 2007.[18]In response to the high oil prices of the 1970s, industrial nations took step to reduce dependence on oil. Utilities switched to using coal, natural gas, or nuclear power while national governments initiated multi-billion dollar research programs to develop alternatives to oil. Demand for oil dropped by five million barrels a day while oil production outside of OPEC rose by fourteen million barrels daily by 1986. During this time, the percentage of oil produced by OPEC fell from 50% to 29%. The result was a six-year price decline that culminated with a 46 percent price drop in 1986. In order to combat falling revenues, Saudi Arabia pushed for production quotas to limit production and boost prices. When other OPEC nations failed to comply, Saudi Arabia slashed production from 10 million barrels daily in 1980 to just one-quarter of that level in 1985. When this proved ineffective, Saudi Arabia reversed course and flooded the market with cheap oil, causing prices to fall to under ten dollars a barrel. The result was that high price production zones in areas such as the North Sea became too expensive. Countries in OPEC that had previously failed to comply to quotas began to limit production in order to shore up prices.[19] Responding to war and low prices[edit]Main articles: 1990 oil price shock and 2000s energy crisis Leading up to the 1990-91 Gulf War, The President of Iraq Saddam Hussein recommended that OPEC should push world oil prices up, helping all OPEC members financially. But the division of OPEC countries occasioned by the Iraq-Iran War and the Iraqi invasion of Kuwait marked a low point in the cohesion of OPEC. Once supply disruption fears that accompanied these conflicts dissipated, oil prices began to slide dramatically. After oil prices slumped at around $15 a barrel in the late 1990s, joint diplomacy achieved a slowing down of oil production beginning in 1998. In 2000, Chavez hosted the first summit of OPEC in 25 years. The next year, however, the September 11, 2001 attacks against the United States,and the following invasion of Afghanistan, and 2003 invasion of Iraq and subsequent occupation prompted a sharp rise in oil prices to levels far higher than those targeted by OPEC themselves during the previous period. Indonesia withdrew from OPEC in 2009 to protect its oil supply. On 19 November 2007, global oil prices reacted violently as OPEC members spoke openly about potentially converting their cash reserves to the euro and away from the US dollar.[20] Production disputes[edit]The economic needs of the OPEC member states often affects the internal politics behind OPEC production quotas. Various members have pushed for reductions in production quotas to increase the price of oil and thus their own revenues.[21] These demands conflict with Saudi Arabias stated long-term strategy of being a partner with the worlds economic powers to ensure a steady flow of oil that would support economic expansion.[22] Part of the basis for this policy is the Saudi concern that expensive oil or oil of uncertain supply will drive developed nations to conserve and develop alternative fuels. To this point, former Saudi Oil Minister Sheikh Yamani famously said in 1973: The stone age didnt end because we ran out of stones.[23] One such production dispute occurred on 10 September 2008, when the Saudis reportedly walked out of OPEC negotiating session where the organization voted to reduce production. Although Saudi Arabian OPEC delegates officially endorsed the new quotas, they stated anonymously that they would not observe them. The New York Times quoted one such anonymous OPEC delegate as saying â€Å"Saudi Arabia will meet the market’s demand. We will see what the market requires and we will not leave a customer without oil. The policy has not changed. OPEC aid[edit]OPEC aid dates from well before the 1973/74 oil price explosion. Kuwait has operated a programme since 1961 (through the Kuwait Fund for Arab Economic Development). The OPEC fund became a fully fledged permanent international development agency in May 1980.

How Nuclear Power Works :: essays research papers

How Nuclear Power Works Nuclear power plants provide about 17 percent of the world's electricity. Some countries depend more on nuclear power for electricity than others. In France, for instance, about 75 percent of the electricity is generated from nuclear power, according to the International Atomic Energy Agency. In the United States, nuclear power supplies about 15 percent of the electricity overall, but some states get more power from nuclear plants than others. There are more than 400 nuclear power plants around the world, with more than 100 in the United States. The dome-shaped containment building at the Shearon Harris Nuclear Power Plant near Raleigh, NC Have you ever wondered how a nuclear power plant works or how safe nuclear power is? In this article, we will examine how a nuclear reactor and a power plant work. We'll explain nuclear fission and give you a view inside a nuclear reactor. Uranium Uranium is a fairly common element on Earth, incorporated into the planet during the planet's formation. Uranium is originally formed in stars. Old stars exploded, and the dust from these shattered stars aggregated together to form our planet. Uranium-238 (U-238) has an extremely long half-life> (4.5 billion years), and therefore is still present in fairly large quantities. U-238 makes up 99 percent of the uranium on the planet. U-235 makes up about 0.7 percent of the remaining uranium found naturally, while U-234 is even more rare and is formed by the decay of U-238. (Uranium-238 goes through many stages or alpha and beta decay to form a stable isotope of lead, and U-234 is one link in that chain.) Uranium-235 has an interesting property that makes it useful for both nuclear power production and for nuclear bomb production. U-235 decays naturally, just as U-238 does, by alpha radiation. U-235 also undergoes spontaneous fission a small percentage of the time. However, U-235 is one of the few materials that can undergo induced fission. If a free neutron runs into a U-235 nucleus, the nucleus will absorb the neutron without hesitation, become unstable and split immediately. See How Nuclear Radiation Works for complete details. Nuclear Fission The animation below shows a uranium-235 nucleus with a neutron approaching from the top. As soon as the nucleus captures the neutron, it splits into two lighter atoms and throws off two or three new neutrons (the number of ejected neutrons depends on how the U-235 atom happens to split).

Google in China

Google entered China in 2006 with high hopes of taking over the Chinese internet market. In order to become a major player for internet search engines in China, however, they had buckled and filtered search results according to the Chinese government. When Google. cn was launched, a loud public outcry over its giving in to the Chinese government on censoring and filtering search engine results, the company faced a communications crisis. Since Google had always been known for its free thinking, this seemed a vast contradiction. From a communications standpoint, Google’s greatest vulnerability in this crisis lay with a tarnished public image.Since the company’s inception, Google had enjoyed a reputation for ingenuity and creativity. Google had changed the way people use and search on the internet that was free from pop up advertisements and organized information. They promoted different and radical ideas for development in the workplace to foster the creative atmosphere a t the Googleplex in California. The corporate public image is â€Å"the sum total of perceptions of the corporations personality characteristics. † (Spector, 1961 p. 47) Google’s had an outstand public image evidenced by the fact that it was one of the most popular search engines in the world.When Google decided to enter the Chinese market, the company was forced by the Chinese government to impose self-censorship if they were to operate within the boundaries of China. Though executives disagreed with censoring, they â€Å"grudgingly agreed that this is the ethical price they have to pay to place servers in mainland China. † (2006 Jan) If an internet search engine did not filter search results, the government would use its own, which highly slowed down the rate at which the servers could process the request. â€Å"The filtered results would remove any reference to a number of subjects. This policy in China did not align itself with the public image that Google had established and sought to maintain. This new policy brought about harsh criticism, â€Å"Google’s statements about respecting online privacy are at the height of hypocrisy in view of its strategy in China, said groups like the RWB in January of 2006. Google’s policy of self-censorship in China did not sit well with the public or human rights organizations. Though Google seemed to promote free-thinking and free speech on one hand, they were censoring and filtering with the other.Google lost credibility with the public, thus tarnishing its public image and â€Å"loosing 1% of the U. S. market in one month,† as reported in The Business. (2006, Aug) â€Å"Image credibility is based on the constituency’s perception of the organization† (Argenti, 2009, p. 39). When the public image of a company has been compromised it â€Å"can make a huge difference in determining the success or failure of the organization† (Argenti, 2009, p. 40). When the p ublic looses confidence in a company and what they stand for, they no longer wish to use its product.In response, executives at Google attempted to convince the public that they could handle the balancing act between censorship and providing information, and gain back public trust and confidence. Google’s greatest vulnerability in the ordeal with China was damage done to its reputation because we should, as stated in the Bible, â€Å"Earn a reputation for living well in God’s eyes and the eyes of the people. †(Proverbs 3:4) When running a company it is highly important to preserve good standing because when â€Å"good will or trust is lacking, the organization will fail at achieving its objectives (Argenti, 2009, p. 40).

Ethics Module 2 - 1166 Words

1. Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms? Briefly describe each and use examples. The two forms of utilitarianism that Shaw and Barry refer to are act utilitarianism and rule utilitarianism. The act utilitarianism states that we must ask ourselves what the consequences of a particular act in a particular situation will be for all those affected. If its consequences bring more net good than those of any alternative course of action, then this action is the right one and the one we should perform. Shaw and Barry talked about the theory of a woman on her death bed. She had $25,000 in cash under her bed and her dying wish was to give that to her nephew. Her nephew was a known†¦show more content†¦That people should not be discriminated against regardless of their race, religion, gender or disabilities. 5. What is the MAXIMIN rule for making decisions? The maximin rule for making decisions, you should select the alternative under which the worst that could happen to you is better than the worst that could happen to you under any other alternative—that is, you should try to maximize the minimum that you will receive. My opinion on this is that if you are faced with making a decision, you should make the best decision that has the least amount of consequences. This is said to be one of the most widely used rules for making decisions. 6. What is the role of the veil of ignorance in Rawls theory of distributive justice? The veil of ignorance is when the laws/rules are governed, that there is no knowledge of who or the what the situation is that the rules will be administered to. Once the rules are made, the veil will be lifted and they will know who the rules will regulate. Having this is supposed to make the decisions fair and that there be no favoritism when the rules are made. 7. According to Shaw and Barry, deciding what sort of economic arrangements would best promote human happiness requires the utilitarian to consider many things. What are the five considerations mentioned by Shaw and Barry? Shaw and Barry believe that you must consider many things to be able to decide what economic arrangements would best promote human happiness. TheyShow MoreRelatedModule 2 Business Ethics Case Assignme Essay1717 Words   |  7 Pagesï » ¿ TUI University Lisa Tanner Module 2 Case Assignment Ethics 501: Business Ethics and Consequentialism Professor: Dr. Bonnie L. Adams Introduction We’re studying business ethics and every day when we go in our places of business we see so many people such as mangers, leader, and assign shift leaders lacking the knowledge of ethics. We have so many people not living in the deontological ethic world. Their living in their own world doing what they have to do no matter who it affectRead MoreBusiness Ethics-Written Assignment for Module 2 Essay1536 Words   |  7 Pages Business Ethics Written Assignment for Module 2 1. Shaw and Barry distinguish two different forms of utilitarianism. What are these two forms. Briefly describe each and use examples. Act Utilitarianism and Rule Utilitarianism are the two different forms of utilitarianism that Shaw and Barry distinguish. Utilitarianism refers to the greatest happiness principle for the most amounts of people. Act utilitarianism â€Å"states that we must ask ourselves what the consequences of a particular act in aRead MoreThe Texas Education Agency ( Tea ) Uploaded Their Professional Development Modules Onto Www1546 Words   |  7 Pagesskills and knowledge even after you’ve already got the job. Professional development comes in many forms, including video training modules. 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