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.