One of the main advantages of OPEC is that they control the price of oil. They do this by talking to the Middle East and other countries where most of the oil is imported from and have helped influence the oil prices since 1973. However, this is currently also a disadvantage as OPEC’s short term plans has caused a continuous stream of fluctuations in oil rates and often dramatic rises in these prices. OPEC’s reserves of oil at the end of 2003 stood at approximately 77 per cent of the world reserves which can be seen as both an advantage and disadvantage due to the reasons above.
OPEC works by getting countries to sell oil through their company to keep the levels, in theory steady. Many countries in the Middle East have signed up to be a member of OPEC which brings the world and its oil supply together but with OPEC not seeming to have any long term plans, leaving the world’s oil supply in their hands to deal out to other countries does not always appear the best idea. But, with OPEC announcing better management of oil and better planning we will see whether the disadvantages decrease or whether the company keep going the way they are with oil fluctuating all the time.
OPEC works by getting countries to sell oil through their company to keep the levels, in theory steady. Many countries in the Middle East have signed up to be a member of OPEC which brings the world and its oil supply together but with OPEC not seeming to have any long term plans, leaving the world’s oil supply in their hands to deal out to other countries does not always appear the best idea. But, with OPEC announcing better management of oil and better planning we will see whether the disadvantages decrease or whether the company keep going the way they are with oil fluctuating all the time.
