Year without Oil :: essays papers

Year with place OilOPEC Oil Embargo There ar several things that come to mind when presented with the picture and topic, further the one that stands out most is shortage. However, shortage is an ironic word to use for it. It wasnt authentically a shortage in the fact that the world is out of oil, which creation a non-renewable resource will be one day, notwithstanding it was an undreamt 130% increase in cost by OPEC, Organization of fossil oil Exporting Countries. This forced the petroleum market to head into a tailspin. OPEC, started by the major oil producing countries in the Middle East, was designed to give price control to the oil producers, instead of the oil manufacturers. Formed in 1960, OPEC was electrostatic a middleman for 10 years, but in the 1970s, they found the in effect(p) time to drive up the price of gas. One viewpoint stern say it was about time that we started paying these countries for what they were up to that point, giving us, but from the other standpoint, OPEC is no to a greater extent than a pledge and monopoly. A cartel is two or more parties, the oil producing countries, hurting an innocent terzetto party, oil consumers. OPEC was created to hurt the oil manufacturers who were taking advantage of the oil producers, but unfortunately the one that got hurt from the agreement be the oil marketing stations and us, the consumer. There are several reasons why it isnt the manufacturers didnt get affected by any of the price raises. First of all, no matter how high the price of crude oil goes, the world still has to keep buying oil products. In fact, the world is using more petroleum products now than it ever has before, and jakes only get it from a few manufacturers, which means a monopoly is feeding an oligopoly. Monopolies are when the economy relies on one source for all of a product, also called a trust. Monopolies are banned in the United States by Anti-Trust Laws. Oligopolies are products, that the economy relies on, that are only available from a few sources. In a wide market, the oil market, these companies can raise prices for consumers and receive massive increases in their profits. To rightfully understand the hardships that happened in the 1970s, and not being around in that time, we can look at the situation we are experiencing today.