Energy Players

OPEC - Organisation of Petroleum Exporting Countries12 Members: Algeria Angola Ecuador Iran Iraq Kuwait Libya Nigeria Qatar Saudi Arabia United Arab Emirates Venzuela 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. AlgeriaUS 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. Repubicans have benefitted the most from these contributions. OPEC is a cartel - an agreement between countries to fix the prices of oilAdvantages: 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