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.

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.

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.

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.

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.

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.