AP Human Geo: OPEC

What caused the oil crisis and embargo of 1973? Why did this impact oil prices in the United States

Arab countries refused to sell oil to the U.S. because we supported Israel in the Yom Kippur War. The oil prices spiked and inflation

What factors have made the development of solar energy in the country difficult?

Bureaucratic infighting, technical problems, dust and sandstorms, petroleum subsidies

How does OPEC wield power in the global community?

By coordinating their supplies, they can control the total supply which allows them to control prices

How do global conflicts in the region impact the power of OPEC?

If member states are fighting then the overall unity of the organization is disrupted. Makes them weaker

What makes solar as a renewable energy particularly attractive to the Saudi government?

If they keep consuming so much oil, they will run out of oil to export and might even have to start importing oil for themselves. They also have intense sunlight, and they can't run out of it

When was OPEC created and why?

It was created in 1960 to provide stability in their resource and income

What is the connection between water and oil production?

Oil and fresh water are both needed to run factories, and oil is needed to run the plants that separate the salt from the fresh water

What does OPEC stand for, and what is it?

Organization of the Petroleum Exporting Countries. It is a multinational organization aiming to control the prices of oil

What does the future look like for OPEC?

People are turning to renewable energy which is bad for oil sales. We are starting to depend less on OPEC, which is bad for them

Why is burning oil for energy production in Saudi Arabia economically unsustainable?

Saudi Arabia spends more than 10% of its GDPs on oil subsidies. They could get much better prices if they sold the oil they use to other countries

What countries are involved in OPEC?

Saudi Arabia, Iran, Venezuela, Iraq, Nigeria, Qatar, Indonesia, Kuwait, Algeria, United Arab Emirates, Libya, Ecuador, Angola, and Gabon.

How do demographics impact the policy that OPEC members have toward production rates?

Smaller countries who aren't growing as much, like kuwait can conserve more reserves. But bigger countries like Iran and Iraq have large growing populations use all of their resources possible.

What were some unintended consequences of the oil embargo that actually hurt OPEC, in regards to the U.S., later on?

The US reduced its energy consumption, found new oil suppliers (Mexico and Canada), and turned to other forms of energy

What is the "ruling bargain" in Saudi Arabia?

The royal family provides for citizens and they don't have to pay taxes. It is funded by oil exports

How does OPEC's diversity create problems for it?

They have diverse interests and goals which leads to different decision making. Their interests can clash

According to The Atlantic article, what behaviors do Saudis partake in that lead to energy waste?

They use a lot of oil by keeping their air conditioning running all the time, and driving big cars