Use the graph below to answer the questions

Use the graph below to answer the questions with a partner. [Value of the money of that year] § § Look specifically at the years from 1931 to 1971. If you are a country whose main natural resource is oil, what is a problem for your country? Compare the 1980 s and 1990 s to 1971. What happened to cause a jump in oil prices?

Essential Question: How does OPEC play a role in the world oil market? Standard: SS 7 E 6 c. Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC)

Organization of Petroleum Exporting Countries (OPEC) • As you learned in previous lessons, countries in the Middle East have the greatest percent of oil reserves in the world. • Prior to 1960, oil companies were receiving the greatest benefits from the Middle East’s abundant natural resource. • In 1960, five oil-rich countries formed the OPEC organization. • The founding members of OPEC were Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela.

Why do you think OPEC was formed?

OPEC's ‘Policy Statement' states that there is a right of all countries to exercise sovereignty over their natural resources What does that mean?

Let’s see what OPEC says… http: //www. opec. org/opec _web/en/about_us/23. htm

OPEC’s Purpose • Coordinate and unify petroleum prices in order to promote stability in the world oil market • Ensure a regular supply of petroleum to other countries

OPEC’s Influence • OPEC sets the price and amount of oil produced by its member nations • OPEC has a lot of power and has used oil as a political tactic. For example, in 1973 OPEC stopped exporting oil to countries that supported Israel causing gasoline shortages in the U. S. and other countries.

Founding OPEC Members Mark or Color Saudi Arabia, Iraq, Iran, and Kuwait (right below Iraq) on your map. Label your Key to match your map. Add Venezuela

Current OPEC Members Mark or color the remaining OPEC members on your map. Label your Key to match your map.

Summarizing Strategy: Answer the Essential Question How does OPEC play a role in the world oil market?