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OPEC's Oil Control 
 Is That a Bad or Good Policy?

 

 

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Fabiola Fernandez

fabiolafernandez@WMconnect.com

Walton High School

 

 

INTRODUCTION

 

For the past 50 years, one of the main sources of energy used by developed and developing nations has been oil.  Nations possessing oil reserves have the power. Global development had an even larger impact on the use of energy and other resources. Worldwide demand for these resources has led to both environmental and political problems.

 


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HISTORICAL BACKGROUND

 

OPEC (Organization of the Petroleum Exporting Countries) is an international Organization of eleven developing countries which are heavily reliant on oil revenues as their main source of income. Membership is open to any country which is a substantial net exporter of oil and which shares the ideals of the Organization. The current members are Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Since oil revenues are so vital for the economic development of these nations they aim to bring stability and harmony to the oil market by adjusting their oil output to help ensure a balance between supply and demand.

OPEC's eleven Members collectively supply about 40 per cent of the world's oil output, and possess more than three-quarters of the world's total proven crude oil reserves.

In 1990, Iraq invaded Kuwait and threatened to stop the distribution of Kuwait’s oil. Fears began to mount that Iraq would also invade Saudi Arabia, another major source of oil and OPEC’s member. Iraq’s objective was to cut off petroleum supplies to the world, and take OPEC’s control. When an international economic embargo failed to change Iraq’s politics, countries of the United Nations moved to start the war on Iraq.

*                      Was this a wise policy?

*                      Was this done just to control oil supplies for the benefit of developed countries?

*                      Did the war on Iraq help to control the price of petroleum around the world?

 

All eleven OPEC’s members are developing countries, whose economies rely on oil export revenues. One of OPEC’s primary missions is to achieve table oil prices, which are fair and reasonable for oil producer and consumers.

 

Are Gas Prices in NY Stable and Reasonable?

 

 

    

 

Is OPEC being greedy and all New Yorkers are paying the PRICE?

 


There are a lot of opinions and misconceptions (existing policy towards Iraq) in regards to why we are at war with Iraq. Much of the American Public is not convinced that our reasons for war are justified:

-War will prevent further organization of the OPEC momentum towards the euro as an oil transaction currency standard.

-America wants control over Iraq's oil reserves

Did the war on Iraq help to control the price of petroleum in US?

 

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TASK

 

Students will write a 200 words essay analyzing the following points and issues in oil situation:

v    History of OPEC

v    OPEC’s impact on the world economy

v    Immediate consequences in New York

v    Possible solution to the existing OPEC policy

v    Their new policy  to help New Yorkers economy

 

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PROCESS

To help you write your essay, use the following links to complete the six public policy worksheets.

 Identify the problem  http://www.maxwell.syr.edu/plegal/TIPS/worksheet1.html

 Gathering evidence http://www.maxwell.syr.edu/plegal/TIPS/worksheet2.html

Identify causes of the problem  http://www.maxwell.syr.edu/plegal/TIPS/worksheet3.html

Evaluate the policy  http://www.maxwell.syr.edu/plegal/TIPS/worksheet4.html

Develop a solution to the problem  http://www.maxwell.syr.edu/plegal/TIPS/worksheet5.html

Selecting the best solution  http://www.maxwell.syr.edu/plegal/TIPS/worksheet6.html

 

Resources 

 

Ř     http://www.globalwitness.org/

Ř     http://www.globalwitness.org/campaigns/oil/

Ř     http://www.history.rochester.edu/fuels/tarbell/MAIN.HTM

Ř     http://www.eia.doe.gov/emeu/cabs/choke.html

Ř     http://quote.bloomberg.com/apps/news?pid=10000103&sid=anflYPb0SK6U&refer=us

Ř     http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3563398&thesection=business&thesubsection=latest

Ř     http://www.nzherald.co.nz/latestnewsstory.cfm?storyID=3561769&thesection=business&thesubsection=latest

Ř     http://www.newsday.com/news/local/wire/ny-bc-ny--jonesbeach-windmi0502may02,0,4815405.story?coll=ny-ap-regional-wire

Ř     http://www.eere.energy.gov/buildings/state_energy/connections/stellar_project.cfm?volume=34

Ř     http://t3.preservice.org/T0301008/whywar.htm

Ř     http://www.petroleumworld.com/

Ř     http//:www.opec.org

Ř     http//:www.eia.doe.gov

 

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CONCLUSION

 

Global development has had a variety of effects, both positive and negative. This development requires the use of energy. Nations with less production of oil face the disruption on the distribution or in the increase of its price. This situation makes the availability of the oil resource to decline. The government ha to implement a new policy or find some alternatives to make this product more accessible and available for these nations.

 

EVALUATION

 

SCALES

Unacceptable  1

Adept  2

Advanced 3

Research and Interpret Data/Information

 

Incorrectly interprets data or information with little or no analysis or conclusion. Little or no evidence of research presented.

Correctly interprets data or information, but analysis or conclusion may

not be supported by research.

 Correct interpretation of data or information. Analysis and conclusion

are based on research.

Appropriate Vocabulary

Inappropriate vocabulary and use occurs.

Some inappropriate vocabulary present, or limited use of appropriate

vocabulary.

Articulates appropriate vocabulary and terms associated with the subject

matter.

Organization/Format

 

Little evidence of a cohesive plan. Little or no description or detail. Ideas seem scrambled, jumbled, or disconnected.

 

Organizes material in an appropriate manner, but may lack some clarity

or consistency. Presents basic information but may have extraneous

material.

Organizes material in a clear, appropriate, and precise manner.

 

Content

 

Little evidence of appropriate content.

 

Material is appropriate, but may lack a clear connection to the purpose.

Material content is clear, relevant, accurate, and concise.

Writing Conventions

 

Little or no evidence of correct writing. Poor conventions seriously limit the paper's readability.

Minor errors are present, but they do not detract from the readability of

the paper.

Enhances the readability of the paper.

 

 

STANDARDS

 

English

 

v    Standard 1: Students will read, write, listen, and speak for information and understanding.

As listeners and readers, students will collect data, facts, and ideas; discover relationships, concepts, and generalizations; and use knowledge generated from oral, written, and electronically produced texts. As speakers and writers, they will use oral and written language to acquire, interpret, apply, and transmit information.

v    Standard 2: Students will read, write, listen, and speak for literary response and expression. Students will read and listen to oral, written, and electronically produced texts and performances,

v    Standard 3: Students will read, write, listen, and speak for critical analysis and evaluation.

As listeners and readers, students will analyze experiences, ideas, information, and issues presented by others using a variety of established criteria.

 

Social Studies

 

Students will use a variety of intellectual skills to demonstrate their understanding of major ideas, eras, themes, developments, and turning points in the history of the United States and New York.

 

v    Standard 4 The skills of historical analysis include the ability to: explain the significance of historical evidence; weigh the importance, reliability, and validity of evidence; understand the concept of multiple causation; understand the importance of changing and competing

interpretations of different historical developments.

Students:

• analyze historical narratives about key events in New York State and United States history to identify the facts

and evaluate the authors’ perspectives

• consider different historians’ analyses of the same event or development in United States history to understand how different viewpoints and/or frames of reference influence historical interpretations

• evaluate the validity and credibility of historical interpretations of important events or issues in New York State or United States history, revising these interpretations as new information is learned and other interpretations