Post by Ryosuke Tsukamoto
Topic: OPEC
OPEC was created in 1960 to ensure price stability in the world oil market, to obtain a stable revenue for oil-producing nations and to provide a regular, reliable, efficient and economic's supply to consuming countries and a fair return to investors. One of the important things that is mentioned is that OPEC has to ensure that energy resources readers all people and all nations, regardless of countries' economy because energy is essential for develop of mankind. As for revenue from oil, it's mentioned that 20 percent of revenue goes to a producing country, and 70 percent goes to the government. Also, OPEC estimates that oil and gas will play an important role for decades, and OPEC thinks that cooperation is important. Relatively recently, 8 non-OPEC oil producing nations have become observers of OPEC, and they have a meeting with OPEC. The things that OPEC should do are ensuring stable prices to allow consumers and producers to meet today's needs and providing secure supply to prevent from high price. In my opinion, the idea of OPEC, we have to share our energy resources with whole countries, is important, and it is a debatable question whether we can agree or not.
by Elaine
ReplyDeleteNice to see you on blog.
I think OPEC is an effective organization to prevent other countries from controlling the oil price.
Still, I am not quite understand this:
"As for revenue from oil, it's mentioned that 20 percent of revenue goes to a producing country, and 70 percent goes to the government"
1)20% revenue will go back to its oringinal country but not its government?
2)How does the organization use and distribute the extra 10% revenue?
Thank you
by Lucy
ReplyDeleteHey Ryosuke!
Thanks for sharing and let me know more about OPEC.
Remaining the oil price stable is really important. Because although the higher price will motivate OPEC countries to produce more oil, but in the meantime, it will influence the economy of the countries that want to import oil, which may lead to fewer supply of oil. And that can cause the oil price drop.