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…...

Similar Documents

Opec Oil: Economic Events and the Impacts

...OPEC OIL IN 2010: ECONOMIC EVENTS, TRENDS IN DEMAND AND SUPPLY AND IMPACT ON PRICES Etuwat James J.O., American University of Leadership, 2012 1.0 INTRODUCTION This submission is on an organization known by its acronym OPEC but its full name is Organization of the Petroleum Exporting Countries. The write up seeks to identify economic events related to 2010 that have influenced the trends of the supply and demand of OPEC oil and the impact of these events on oil prices. My focus will be on the period of 2010 and to an extent prior to that year. According to their website (OPEC 2012) , the Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization and was created in the Iraq capital of Baghdad after endorsement of accord in 1960 by the founding members, Kuwait, Iraq, Saudi Arabia, Islamic Republic of Iran and Venezuela. Others came in later in alphabetical order: Algeria (1969), Angola (2007), Ecuador (1973), Gabon (1975), Indonesia (1962), Libya (1962), Nigeria (1971), Qatar (1961), United Arab Emirates (1967). However, Ecuador deferred its membership in the period December 1992 to October 2007, Gabon ceased its attachment in 1995. Indonesia shelved its commitment from January 2009. At the moment, OPEC has Member Nations. OPEC had its head office in Geneva, Switzerland, for five years since its creation but transferred Vienna, Austria in 1965. The governing charter of OPEC differentiates between the Founder Members and Full......

Words: 3328 - Pages: 14

Opec

...(2011)[show] * Algeria * Angola * Ecuador * Iran * Iraq * Kuwait * Libya * Nigeria * Qatar * Saudi Arabia * United Arab Emirates * Venezuela | Leaders | - | President | Rostam Ghasemi | - | Secretary General | Abdallah el-Badri | Establishment | Baghdad, Iraq | - | Statute | September 10–14, 1960 | - | in effect | January 1961 | Area | - | Total | 11,854,977 km2 4,577,232 sq mi | Website www.opec.org | | Currency | Indexed as USD-per-barrel | | | | Current members OPEC has twelve member countries: six in the Middle East, four in Africa, and two in South America. Country | Region | Joined OPEC[25] | Production (bbl/day) | Algeria | Africa | 1969 | 2125000 !2,125,000 (16th) | Angola | Africa | 2007 | 1948000 !1,948,000 (17th) | Ecuador | South America | 2007[A 1] | 0485700 !485,700 (30th) | Iran | Middle East | 1960[A 2] | 4172000 !4,172,000 (4th) | Iraq | Middle East | 1960[A 2] | 3200000 !3,200,000 (12th) | Kuwait | Middle East | 1960[A 2] | 2494000 !2,494,000 (10th) | Libya | Africa | 1962 | 2210000 !2,210,000 (15th) | Nigeria | Africa | 1971 | 2211000 !2,211,000 (14th) | Qatar | Middle East | 1961 | 1213000 !1,213,000 (21st) | Saudi Arabia | Middle East | 1960[A 2] | 8800000 !8,800,000 (1st) | United Arab Emirates | Middle East | 1967 | 2798000 !2,798,000 (8th) | Venezuela | South America | 1960[A 2] | 2472000 !2,472,000 (11th) | Total | 33,327,700 bbl/day | WHAT IS OPEC......

Words: 2429 - Pages: 10

Opec

...Organization and Objectives The Organization of the Petroleum Exporting Countries (OPEC), hereinafter referred to as “the Organization”, created as a permanent intergovernmental organization in conformity with the Resolutions of the Conference of the Representatives of the Governments of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela, held in Baghdad from September 10 to 14, 1960, shall carry out its functions in accordance with the provisions set forth hereunder. A. The principal aim of the Organization shall be the coordination and unification of the petroleum policies of Member Countries and the determination of the best means for safeguarding their interests, individually and collectively. B. The Organization shall devise ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations. C. Due regard shall be given at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on their capital to those investing in the petroleum industry. English shall be the official language of the Organization. Membership A. Founder Members of the Organization are those countries which were represented at the First Conference, held in Baghdad, and which signed the original agreement of the......

Words: 744 - Pages: 3

Battle of Algeria

...There’s always more than one side to a story. After watching Gilles Pontecorvo's The Battle of Algiers, I actually felt melancholy for the native Algerians and French even though they were fighting against each other. In the film, Pontecorvo depicts both sides suffering through so much during Algeria’s war for independence. I didn’t know of this war but the film opened my eyes to the discrepancy that was going on in Algeria at this time in history. The film takes place shortly after World War I, and you can see the distress within the people of Algeria. They were totally against imperialistic rule, and indeed they tried to overrule colonialism amongst themselves. The National Liberation Front also known as the FLN was a small group who took matters in their own hands. They had people set off bombs in crowded areas; however I didn’t understand the point of that because they were still killing innocent people by doing this. Yes the French did do horrific things to the Algerian women and children but two wrongs don’t make a right. I felt this wasn’t a smart idea on the FLN part yet again; things were different back then than how it is now. The French fought fire with more fire. I noticed that when there were scenes of the French armies approaching the sounds were different from scenes of the Algerians or the FLN. The scenes of the French army seemed dark and there were always gunshots in the background. To me those are common signs of war or that something evil is about to......

Words: 395 - Pages: 2

Oil and Gas

...Value Chain of the Oil and Gas Industry Main Suppliers Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Natural Gas Producers -Russia -Canada (Sands) -Iran*** -Norway -Algeria -Indonesia -Saudi Arabia -Turkmenistan -Malaysia Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Production: Top Oil Producers * Saudi Arabia * Russia*** * U.A.E * Canada * Venezuela * Kuwait * Nigeria * Mexico * China * Iran Oil (*** top producer) Natural Gas (*** top producer) OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula OPEC: Organization of the Petroleum Exporting Countries- aim in the oil and gas industry is to shift the bargaining power from the large oil companies to the producing countries Member Countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, Venezula Preference Major Competitors IOC’s (Integrated Oil Companies)- companies......

Words: 549 - Pages: 3

Opec

...Exporting Countries (OPEC) have received considerable attention both in the academic literature and in the media. Many conflicting theoretical and empirical interpretations about the nature of OPEC and its influence on world oil markets have been proposed. The debate is not centred on whether OPEC restricts output, but the reasons behind these restrictions. Others explain production cuts in the 1970s in terms of the transfer of property rights from international oil companies to governments (Johany, 1980; Mead, 1979). Others explain output restrictions in terms of coordinated actions of OPEC members. Within the literature, OPEC behaviour ranges from classic textbook cartel to two block cartel (Hnyilicza and Pindyck, 1976), to clumsy cartel (Adelman, 1980), to dominant firm (Salant, 1976; Mabro, 1991), to loosely co-operating oligopoly, to residual firm monopolist (Adelman, 1982) and most recently to bureaucratic cartel (Smith, 2005). Others have suggested that OPEC oscillates between various positions but always acts as a vacillating federation of producers (see for instance Adelman, 1982; Smith, 2005). The existing empirical evidence has not helped narrow these different views. Griffin’s (1985) observation in the mid-1980s that the empirical studies tend to “reach onto the shelf of economic models to select one, to validate its choice by pointing to selected events not inconsistent with model’s prediction” still dominates the empirical approach to studying OPEC behaviour......

Words: 1300 - Pages: 6

Lending Institutions, Healthcare and Human Capital in Algeria

...Lending Institutions, Healthcare and Human Capital in Algeria Lending Institutions, Healthcare and Human Capital in Algeria The central bank gives the system its overall consistency and provides resources to other bodies. In addition, laws and regulations underpinning bank supervision may not be formally deficient. However, the extensive state ownership of banks severely undermines regulatory governance (IMF, 2004). Many uncertainties also surround the preconditions for effective banking supervision and sustainable macroeconomic policies. These uncertainties also hinders well-developed public infrastructure, effective market discipline, efficient resolution of banking problems and appropriate level of systemic protection. Evident in the IMF (2004) report is the award of banking licenses to individuals without experience. The net worth of bank owners could not be reliably established (IMF, 2004). The 1990 law on money did not require full capital payment. This culminated to the failure of the largest private bank in 2003 with assets of 3% of GDP. The Algerian banking system currently has 28 active lending institutions of which 21 are banks and 7 are financial institutions. There is also one development bank and an offshore bank. The total number of lending institutions has increased from end 1999 when there were 21 as a result of private sector development. Even though, currently there are 15 private banks, the public sector remains predominant (IMF, 2004). They have......

Words: 1374 - Pages: 6

Opec

...OPEC and the economics of cartel Presented by Sanjay Gupta Lakshmi Varma Lakshmi Nair Shibin T Renjith Outlines  What is OPEC? 1. 2. 3. Oil – A basic necessity OPEC (Information on OPEC) OPEC Side Line Objectives  Our main premise of this Presentation is to derive economics concepts from OPEC and the economics of cartel.  We will also cover briefly micro economics concepts – Demand and Supply, market structure & pricing decisions and related concepts. 2. OPEC is an epitome of Oligopoly 1. Oil – Life Blood of Indian Economy  OIL - One of the life bloods of our Indian economy is oil.  The impact of oil in today’s Indian economy has been witness by consumers many times.  We have seen how human spending and travel got affected as the price of oil fluctuates. In contrast almost all energies are generated using oil, to mention few; Cars, Trucks, Indian railways, Plane, use oil in order to run their engine.  Therefore if oil supply disturbed for one day we can imagine how the Indian economy can be affected greatly. OPEC - Introduction  About OPEC (pronounced oh-peck)- Organization of the Petroleum Exporting Countries - Organization of the Petroleum Exporting Countries, established in Bagdad, Iraq in 1960. OPEC as a cartel, manipulate supply of oil in the market, in hopes of keeping prices, and profits, high.  It is comprised of 12 members –Algeria, Angola, Ecuador, Islamic Republic of Iran, Iraq, Kuwait, Socialist People’s Liberian Arab...

Words: 1650 - Pages: 7

Antisemitism and Catholic Colonial Algeria in the Time of Dreyfus

...[2] As the site of some of the only murderous violence during the Affair, colonial Algeria deserves particular attention. Examining the Dreyfus Affair from the perspective of French colonial Algeria illuminates the place of antisemitism in Algerian political culture, the development of modern French antisemitism, and the relationship between antisemitism and colonial racism.[3] According to George Fredrickson, antisemitism, like all Western racisms, is predicated on a presumption of basic human equality rooted in Christian and Enlightenment universalism.[4] For those uncomfortable with the implications of this leveling premise, racism offered a means of maintaining social hierarchies by characterizing its victims as innately and irredeemably sub-human. These essentializing distinctions provided the rationale both for the exclusion of Algerian Muslims from French citizenship, and popular efforts to characterize naturalized Algerian Jews as un-French foreigners.[5] Each form of racism, however, is particular to its socio-cultural context, invariably enmeshed in local struggles to define the boundaries of national and group identity.[6] Close examination of the 1899 reporting of La Croix de l'Algérie et de la Tunisie, one of 86 local subsidiaries of the Catholic Assumptionist daily La Croix, provides an illustrative microcosm of these processes in the under-studied space of French colonial Algeria. Deriving from the political and economic particularities of its Algerian......

Words: 11536 - Pages: 47

Oil and Development

...OIL AND DEVELOPMENT INTRODUCTION Oil is one of the most important resource of industrialized nations. It has various uses like to generate heat, fuel vehicles, manufacturing goods like chemicals, plastics, paints, medicines etc. Oil is a non-renewable resource and thus has limited supply and due to its many uses has very high demand. Earlier price of oil was mainly influenced by OPEC. Organization of Petroleum Exporting Countries (OPEC) is type of cartel which mainly determines price of oil by actual supply and demand and partly by expectation. A Cartel is a group of sellers of a product who have joined together to control its production, sales, and price to obtain the advantages of monopoly. OPEC allows its members to organize their economic policies to guarantee income and influence of oil prices globally. OPEC was formed at the Baghdad conference in September 1960. The first members were Iraq, Kuwait, Iran, Venezuela, and Saudi Arabia. The organization later included the United Arab Emirates, Qatar, Algeria, Indonesia, Ecuador, Nigeria, Angola, Libya and Gabon. OPEC has a unique structure because its members are not companies but rather countries. As these countries have formed a cartel, the market is served by a monopoly as the primary purpose of a cartel is not only to drive up prices, necessarily, but to drive competitors out of the market. The members not only agree to the total level of production but also about the amount produced by each member. OIL PRICE TREND......

Words: 719 - Pages: 3

Integrating Ict- Based Applications for Sustainable Tourism Development in Algeria

...Integrating ICT- Based Applications for Sustainable Tourism Development in Algeria BOUTKHIL Guemide Assistant Teacher Department of English Language Faculty of Letters & Languages University of Med Seddik Benyahia. Cité Ouled Aissa B. P. N°98 Jijel (18000) Algeria titanicmaze@hotmail.fr Pr. CHELLALI Benachaiba Assistant Professor Department of Electronics & ICTs Faculty of Electrical Engineering University of Med Tahri B. P. N° 417 Bechar (08000) Algeria. IBTISSAM Bedri Assistant Teacher Department of Political Sciences Faculty of Law & Plitical Sciences University of Med Khaidar 145 RP, BISKRA (07000) Algeria Dr. Salima Maouche Assistant Professor Department of English Language Faculty of Letters & Languages University of Abd Errahmane Mira, Bejaia (06000) Algeria ABSTRACT: Information and Communication Technology (ICT) has inevitable impacts on different industries and their performances. The tourism industry, as the largest and fastest growing industry in the world, cannot be excluded from this technology and its huge impacts. ICT provides information about tourist attractions in different destinations before travelling and improves tourists‘ satisfaction. Although Algeria has great tourism potentials, it still needs to be performed well in promoting its attractions to international tourists via ICT tools yet. This research explores the impact of ICT on foreign tourists‘ satisfaction of the tourism industry and uses...

Words: 9570 - Pages: 39

Sistema Bancario Algeria

...Sistema bancario e sistema dei pagamenti in Algeria Sistema bancario e sistema dei pagamenti in Algeria INDICE Introduzione 1. Analisi contesto macroeconomico 2. Infrastruttura ed intermediazione bancaria in Algeria 2.1 Eventi storici 2.2 Infrastruttura bancaria – finanziaria 2.3 Credito all’economia 2.4 Solidità ed indici di redditività del settore bancario 2.5 Istituti speciali, finanza islamica e microfinanza, centrale rischi e degli impagati 2.5.1 Cassa di risparmio – un’istituzione specializzata 2.5.2 Finanza islamica 2.5.3 Microfinanza 2.5.4 Centrale dei rischi e degli impagati 3. Sistema dei pagamenti: interbancario e al dettaglio Conclusioni Introduzione Codesto lavoro nasce al fine di presentare il sistema bancario e dei pagamenti dell’Algeria. Partendo dall’esame dei documenti ufficiali, tratti dal sito della Banca Centrale, sono riuscito ad estendere il campo di ricerca ad altri rapporti inerenti al fine, ad esempio ricorrendo al sito dell’ABI. Per alcuni dati statistici è stato preso in considerazione il sito della World Bank. La difficoltà dell’elaborato proposto è stata riscontrata soprattutto per la poca affidabilità e per il numero ristretto dei dati da cui attingere. Cosi per evitare di commettere errori mi sono soffermato sull’ anno 2012-13, poiché il rapporto della Banca Centrale non aveva dati più aggiornati. Ed anche per indici quale inflazione e Pil ho deciso di fermarmi e soffermarmi al 2013. Il lavoro si articola......

Words: 5483 - Pages: 22

Algeria

...their settled French counterparts, Algeria took a stand to end French settlement. This sacrifices however only proved to be have disappointing outcomes leaving the country highly fractured both short term and long term, leading up to the civil war of 1992. I say with great emphasis that it is more difficult to govern a government that is faces post-revolutionary crisis than it is to overthrow an entire establishment. Such is proven in the wake of Algeria's revolution in the 1950s which has left an estimated 700,000 dead, and thousands more scarred physically and psychologically. Both sides of the battle, the Algiers and the French paratroopers, used merciless guerrilla tactics and torture against its own people.[1] Algeria continued however to struggle with civilian casualties. Among those the “Berber people at the hands various factions of insurgents, and was successful for a while”[2]. It is my assertion that decolonization France did not grant formal eminent rule, nor did it administer political order and help cultivate Algeria peacefully as a nation. The question remains however, would Algeria have succeeded long term as a nation under French rule? One can argue that Algerian ties to advanced French culture, language, medicine, technological advancement and western culture would have left Algerians in a much better conditions than the alternatives of the ensuing regimes that have depleted French roots in the country. In light of Algeria and pro independent's logic......

Words: 1564 - Pages: 7

The Role of Risk Management on the Impact of Price Volatility

...historic highs in mid -2008 and only to fall in the last four months of 2008” (kojima 2009:9). Economic growth in the United States of America (USA) and the emerging new markets between 2004 and 2008 gave rise to demand for oil and high-rise in the price of oil. This high volatility of prices has led governments and institutions to intervene in the oil market. This coursework aims at showing the impact of oil price volatility in the global market; it also examines the various roles played by governments, financial institutions and The Organisation of Petroleum Exporting Countries (OPEC) in stabilizing and managing the risk, and the remote causes of price volatility. Government intervention in the oil and gas market is due to the high prices, and they have introduced schemes, policies to check and cushion the effects and intensified their efforts in diversifying away from crude oil while OPEC too intervenes by stabilizing the price of crude oil in the international market which is one of the body’s statutory function. Crude oil prices have been defying all known rules of economics, causing various forms of distortion in the market due to volatile and complex nature of oil. This poses a threat to the Global economy, and is damaging to both consumers and producers and in order to check this it has been proposed that a regulatory body should be in place to regulate the market (French Government 2010). Between 2001 and 2004 oil prices gained $10 per barrel over and......

Words: 2866 - Pages: 12

Morocco & Algeria

...Comparison between Morocco and Algeria Morocco and Algeria are neighborhood countries and share almost 1500 Kilometers of frontiers, and both of them are limited be the Mediterranean Sea in the north. Algeria is the second powerful country in Africa after South Africa while Morocco is the fifth one after the Egypt and Nigeria. In addition to Arabs, Sahraouis and Berbers represent the two main populations in the two countries. Moreover, both of them have Arabic as official language and French as second and administrative one since their independences from France colonization. Another similarity between Algeria and Morocco is their identical climates that differ as we move along both countries, extreme temperatures in the south, and moderate weather in the north. Despite these numerous similarities, Morocco and Algeria differ in three major domains: Their area, their resources, and their political systems and actions over the history of country. The first big dissimilarity between Algeria and Morocco is their areas. In fact, Algeria counts four times the area of Morocco. Algeria extends in more than two millions kilometers square and it is the second big country in Africa after the Sudan and the eleventh worldwide whereas Morocco has only seventh hundred thousand kilometers square whereof two-hundred fifty in Western Sahara which makes Morocco in the eight rank of superficies in Africa and the fifth-seventh in the world. Morocco claims a big part of Algeria that......

Words: 897 - Pages: 4