Theory question 110
Natural Resources and PetroleumSection B
(a) What are the objectives of the Organisation of Petroleum Exporting Countries (OPEC)?
(b) What are the problems of the OPEC?
(c) What remedies have been adopted to curtail them?
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(a) Objectives: co-ordinate and unify members' petroleum policies; secure fair and stable oil prices; regulate output through quotas; ensure a steady income for members; ensure regular supply to consumers; protect members' interests against oil companies and consuming nations.
(b) Problems: members exceed quotas, causing a glut; price falls; competition from non-OPEC producers; development of alternative energy; political disagreements and wars among members; dependence on Western technology and markets.
(c) Remedies: fixing and revising production quotas; monitoring members' output; reducing output to raise prices; negotiations with non-OPEC producers; regular ministerial meetings to settle disputes.
Answer each part separately.