Opec Algeria

In: Business and Management

Submitted By AHarris11
Words 870
Pages 4
1. How dependent is your country on its oil? Include in this discussion which countries your country currently is trading their oil with, their largest importing countries, how much oil they are producing and how dependent they are on their oil trade? (8 points).

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization created at the Baghdad Conference on September 10, 1969. The objective of the OPEC is to co-ordinate and unify petroleum polices among Member Countries, in order to secure fair and stable prices for petroleum producers; and efficient, economic, and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. (OPEC.) In 1969, Algeria joined the OPEC. Algeria is OPEC’s largest member county and the largest country in Africa. It is in the northern part Africa with Western Sahara, Mauritania, Mali, Niger, Libya, and Tunisia as its neighbors. Algeria gained its political independence in 1952 from France. Algeria’s population is more 39 million people. The gas and oil sector is the backbone of the economy, which accounts for more than 35 percent of the GDP and two-thirds of its export. Its largest gas and petroleum deposits are found mainly in the Eastern Sahara and these are transported to various sea port by pipelines. Algeria has the 10th largest reserves of natural gas in the world and is the sixth largest gas exporter. It ranks 16th in oil reserves. Algeria's oil and gas export revenue has allowed the country to maintain a comfortable level of foreign exchange reserves, which reached $194 billion by the end of December 2013, according to the country's central bank. The crude oil production is 1193 barrels per day.

2. Identify and explain two types of political risks (see text pp. 344-45 for risks) that a company may face in doing business in your…...

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