Blog 3 Hind and Mckenna

The OPEC presentation was interesting in so many ways. The clarification of what OPEC does and what it actually has control over was amazing to learn. In North America it seems that OPEC is vilified and blamed when oil prices fluctuate or if there is any hint at an oil crisis. OPEC only controls around 40% of the oil exportation in the world. When oil prices fluctuate the other 60% has to be held responsible as well. In the oil crisis of 2015, the United States flooded the market with shale oil and the supply all over the world increased. With that came the decrease of prices which actually ended up hurting the United States, as it resulted in the bankruptcy and job loss of many firms. Growing up in Canada, we learnt the other perspective regarding OPEC, in the west they are often portrayed in a negative light. In reality there’s only so much OPEC can do to influence prices in the market. OPEC is not a political organization and it is not a governmental organization, it is an economic organization. OPEC also helps third world member countries extract oil and takes measures to protect the environment while in discovery, extraction and usage. OPEC does what it can to control prices in the market place and keep them at a steady and profitable price. North America, specifically the United States, blames Saudi Arabia for price increases and when we asked that question to Hind Zaher she mentioned that in reality not one country can change the price of oil, it takes multiple countries flooding the market or starving the market to actually change the prices. Blaming OPEC for things they actually cannot completely influence, such as prices or supply, is incorrect and we actually have to be educated on the other countries that control 60% of the other oil exports and hold them accountable. Do you think OPEC has been vilified in North America, and if so why?

- Hind and Mckenna