Monday, December 21, 2009
Response to Blog Post #6
The information I used to write this post was retrieved from a reliable source (BBC News). The information in the article that I read on their site was very helpful. I was able to reflect strongly enough to produce an intermediate blog post.
Blog Post #6
In the world right now OPEC supplies a little over 35% of the worlds crude oils. And well over 70% of refined oils. Immediately following the last meeting of its members, OPEC, raised oil prices to close to $74 per barrel of oil.
Essentially, OPEC members agreed to robustly raise prices while still maintaining the same export rate of oil. Oil is bought with dollars, meaning that if the U.S. currency fails then the other major conusmers of oil that are using different currency's (such as the euro) will see a price drop for them.
Even though oil supplies/extraction is at an all time high OPEC still played the position of a government and placed basically a tariff on oil exchanges. Limiting how much each member can extract/export. This is an efficient strategy at pulling in more profit and stimulating their own country/state.
Essentially, OPEC members agreed to robustly raise prices while still maintaining the same export rate of oil. Oil is bought with dollars, meaning that if the U.S. currency fails then the other major conusmers of oil that are using different currency's (such as the euro) will see a price drop for them.
Even though oil supplies/extraction is at an all time high OPEC still played the position of a government and placed basically a tariff on oil exchanges. Limiting how much each member can extract/export. This is an efficient strategy at pulling in more profit and stimulating their own country/state.
Thursday, December 17, 2009
Response to Blog Post 5
I found this article by the New York Times extremely helpful. The power of the writing and information provided was strong and relevant to my topic. The article could easily allow someone with no prior knowledge of OPEC or oil production to understand my topic at an intermediate level. Once again the NYT was a great relevant source for my topic.
Blog Post 5
The Middle East
For the longest time the Middle East has been warred over by expanding complex societies as well as religious expansion. The Iraq war that was started 6 1/2 years ago was originally thought to be induced as a way for the United States to tap into Iraq's vast oil supply. Now, major oil companies have finally reached these reserves yet are finding it hard to withdraw a profit from oil extraction there.
The cost of supplying armed guards and protection for these wells has been exorbitant and inefficient in producing a strong and profitable market there. The extraction costs are high as well considering that Iraq's oil wells are far below the surface of the earth's crust.
Iraq's first attempt at becoming a part of OPEC and opening a bid for oil companies to come and drill there was a complete disaster. No oil company wanted to be involved in difficult oil extraction while at the same time fending off the Taliban and Al Qaeda. These made extraction prices/risks too great to establish a long standing oil exportation in Iraq.
For the longest time the Middle East has been warred over by expanding complex societies as well as religious expansion. The Iraq war that was started 6 1/2 years ago was originally thought to be induced as a way for the United States to tap into Iraq's vast oil supply. Now, major oil companies have finally reached these reserves yet are finding it hard to withdraw a profit from oil extraction there.
The cost of supplying armed guards and protection for these wells has been exorbitant and inefficient in producing a strong and profitable market there. The extraction costs are high as well considering that Iraq's oil wells are far below the surface of the earth's crust.
Iraq's first attempt at becoming a part of OPEC and opening a bid for oil companies to come and drill there was a complete disaster. No oil company wanted to be involved in difficult oil extraction while at the same time fending off the Taliban and Al Qaeda. These made extraction prices/risks too great to establish a long standing oil exportation in Iraq.
Response to Blog Post 4
Once again the NYT (New York Times) has proven to be a viable and current source of news regarding my topic. The article was very well written and consisted of enough information to write a blog post on. I found that the style of the article was efficient enough to retain facts and absorb details to memory. I believe that the NYT will continue to provide these strong articles and future blog post ideas.
OPEC Blog Post 4
Thomas Reiss
OPEC
Oil dropped below $70 back in October. What does this mean for us? Well this certainly means that we are not in peak oil. The market demand for oil has been slipping and will continue to slip until consumers develop a stronger demand.
The drop in oil should provide a stimulus to the economy. Costing consumers less to fill up their tanks. In a recent report, the author stated that, “It will most definitely be cheaper for Americans to heat their homes this winter.” A recent government report stated that the reason for these oil costs to have declined is because of vast stockpiles of crude oil within the United States.
If investors are not confident than OPEC will more then likely cause a fluctuation of oil prices, inducing a frenzy of investing/stock trading. A similar pattern emerged in the 1980's. Oil production/price fluctuation was induced. Causing major losses for OPEC but at the same time boosting Asian, Latin America, and American markets.
OPEC
Oil dropped below $70 back in October. What does this mean for us? Well this certainly means that we are not in peak oil. The market demand for oil has been slipping and will continue to slip until consumers develop a stronger demand.
The drop in oil should provide a stimulus to the economy. Costing consumers less to fill up their tanks. In a recent report, the author stated that, “It will most definitely be cheaper for Americans to heat their homes this winter.” A recent government report stated that the reason for these oil costs to have declined is because of vast stockpiles of crude oil within the United States.
If investors are not confident than OPEC will more then likely cause a fluctuation of oil prices, inducing a frenzy of investing/stock trading. A similar pattern emerged in the 1980's. Oil production/price fluctuation was induced. Causing major losses for OPEC but at the same time boosting Asian, Latin America, and American markets.
Response to Blog Post 3
The information that I obtained through the website used was very helpful. There was great detail in the explanation and core facts about OPEC. I thought that this website could provide facts to formulate an opinion as well as facts to write an article. That is why I chose this site.
Wednesday, December 16, 2009
Blog Post #3
OPEC, (organization of petroleum exporting countries) has established policies that will overall place a monopoly on countries that have become dependent on foreign oil. In many ways OPEC operates like a drug cartel. A group of producers that manipulates the exportation of goods in an effort to raise the price of the exported good. OPEC operates as a government structure similar to Iraq/Iran’s. With a president, in charge of representing/giving speeches to media. Also a prime minister, in charge of vetoing, developing new policies to further advance the extremely profitable market of petroleum.
60% of the American Naval Fleet is centralized in the Persian Gulf. To mainly stop the sabotaging of Israel oil tankers by Iranian’s. Also to stop Iranian missiles from destroying the massive oil wells located in the Middle East. If they were to be destroyed, overnight, America would shut down. Oil prices would raise to over $15-20 a gallon. And ultimately our country would be destroyed.
OPEC faces the basic cartel problems as well… Price cheating by members. Basically meaning that after the organization approves of a standard price, members take this as an advantage and lowers their price lower then the regulated. In an effort to increase their profit. This is very comparable to the Mexican/Columbian drug cartel.
60% of the American Naval Fleet is centralized in the Persian Gulf. To mainly stop the sabotaging of Israel oil tankers by Iranian’s. Also to stop Iranian missiles from destroying the massive oil wells located in the Middle East. If they were to be destroyed, overnight, America would shut down. Oil prices would raise to over $15-20 a gallon. And ultimately our country would be destroyed.
OPEC faces the basic cartel problems as well… Price cheating by members. Basically meaning that after the organization approves of a standard price, members take this as an advantage and lowers their price lower then the regulated. In an effort to increase their profit. This is very comparable to the Mexican/Columbian drug cartel.
Wednesday, December 2, 2009
2nd peer blog responce
you did a good job on it. I don't really understand what all that is or means.
Second Peer Blog Response
Notes were detailed,nothing to improve on for that. The color choice is good, and readable, pictures would be nice though. You have websites, and names of books so that good. I dont see much you need to improve on except pictures!
Second Peer Blog Responce
Good so far. It needs a lot more. All you need to do is remember to post the blog.
Tuesday, November 3, 2009
Posting Response to Data
After reviewing the article that I chose best suitable to take notes on I have determined that it will supply me with notes and information for atleast a week. The reading was very dense. Although understanding the text was not difficult, the underlying factors that the authors were trying to reach was unclear. Essentially there was no thesis statement. Just a random list of facts. That, although was helpful, did not promote a strong opinion or structured thought of the interglobalization of OPEC and its subsidized oil.
OPEC Strategies and Oil Rent in a Climate Conscious World
The cheapest liquid substitutes for conventional oil products are derived from extra heavy oils, including, tar sand, natural gas, coal, oil shale, sugar cane, and maybe even ligno-cellulosic biomass. All of these fuels except biomass-based fuels and natural gas, contain a higher net carbon to energy ratio in their original form than conventional oil. If OPEC members behave strategically than they should be able to utilize this ability to increase their rent. When it comes to biomass-based fuels the supply is limited.
Climate regime must be universal. If climate regime is partial then liquid fuels will be produced from regions without a price on carbon. Countries must not protect synthetic fuel production based on unconventional oil. If climate policy is reinstated through energy efficient standards then the demand for oil production will lose momentum. Not all OPEC members would be effected by this. Many members are reported to own unconventional oil reserves.
The carbon energy ratio is higher for liquiefied coal then heavy coal. If OPEC establishes higher energy standards then basically oil production will be slowed. Causing an imbalanced trade export. Creating a monopoly on oil dependent nation-states. Such as the United States.
Climate regime must be universal. If climate regime is partial then liquid fuels will be produced from regions without a price on carbon. Countries must not protect synthetic fuel production based on unconventional oil. If climate policy is reinstated through energy efficient standards then the demand for oil production will lose momentum. Not all OPEC members would be effected by this. Many members are reported to own unconventional oil reserves.
The carbon energy ratio is higher for liquiefied coal then heavy coal. If OPEC establishes higher energy standards then basically oil production will be slowed. Causing an imbalanced trade export. Creating a monopoly on oil dependent nation-states. Such as the United States.
Tuesday, October 27, 2009
5 Paragraph Essay
OPEC, (organization of petroleum exporting countries) has come to my interest not only because OPEC has claimed the title as a permanent oil establishment, but also because life in the United States would be ultimately put to death… If, OPEC was to run out of oil, or if oil production/export is cut. This topic is one that plays the most importance out of all the other research topics other students chose. Why has OPEC dubbed itself, “… permanent oil source” when oil is non-renewable? What are the basic components of OPEC? Does OPEC operate as a corporation or a nation? What are the basic tenants of OPEC?
OPEC is currently establishing a raise in oil prices/production. http://www.opec.org/home/- the organizations home website. Provides history and a very opinionated view of OPEC and how it runs.
http://topics.nytimes.com/topics/reference/timestopics/organizations/o/organization_of_petroleum_exporting_countries/index.html- provides a different view of how OPEC runs and establishes a general ideology of the organization and its sects.
http://www.econlib.org/library/Enc/OPEC.html- provides history of the organization and also its business history.
I found the most helpful articles under non-government effected news sources. (ie… not fox news) All of the articles were relatively new.
www.opec.org, http://topics.nytimes.com/topics/reference/timestopics/organizations/o/organization_of_petroleum_exporting_countries/index.html, and http://www.econlib.org/library/Enc/OPEC.html are three good resources for my topic. The topic I have chose is very broad and should be easy to dig information up on. The New Global Oil Market: Understanding Energy Issues in the World Economy (Chap. 8 "OPEC: Past, Present, and Future")
by Siamack Shojai. 266 pgs. Explains a brief overview of OPEC and its history. The Natural Law Basis of Legal Obligation: International Antitrust and OPEC in Context, in Vanderbilt Journal of Transnational Law
by Joel Brandon Moore. 75 pgs. Does the same, laying an overview of OPEC. These books are able to help me on my search easily because they are very broad on OPEC's influences and things of that nature.
All of the dates I have found range from early 1990s to late 2009. So yes, this topic is virtually unlimited in the amount of resource available. (Until oil runs out.) With new needs to curb global warming and other such problems OPEC may be in serious trouble. OPEC's global effect on the economy will come to play. Also I predict that oil will once again rise dramatically. I would like to learn more about the political and economical policies that drive OPEC. This topic will not become "static" because of its relativity to everyday American life. If OPEC was to shut down overnight so would the United States.
This topic will make me think about the following things: global warming, politics, economics, policies, and greed. There is not really a certain place or person around New England that would be efficient to interview/visit for my topic.
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