Use the graph below to answer the questions with a partner.

Look specifically at the years from 1931 to 1971. If you are a country whose main natural resource is oil, what is a problem for your country?

Compare the 1980s and 1990s to 1971. What happened to cause a jump in oil prices?

[Value of the money of that year]

How does OPEC play a role in the world oil market?

Standard:

SS7E6c. Explain the primary function of the Organization of Petroleum Exporting Countries (OPEC)

Essential Question:

Organization of Petroleum Exporting Countries (OPEC)

• As you learned in previous lessons, countries in the Middle East have the greatest percent of oil reserves in the world.• Prior to 1960, oil companies were receiving

the greatest benefits from the Middle East’s abundant natural resource.• In 1960, five oil-rich countries formed the

OPEC organization.• The founding members of OPEC were

Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela.

Why do you think OPEC was formed?

OPEC's ‘Policy Statement' states

that there is a right of all countries to

exercise sovereignty over their natural

resources What doesthat mean?

Let’s see what OPEC says…

http://www.opec.org/opec_web/en/about_us/23.htm

OPEC’s Purpose• Coordinate and unify

petroleum prices in order to promote stability in the world oil market

• Ensure a regular supply of petroleum to other countries

OPEC’s Influence• OPEC sets the price and amount of

oil produced by its member nations

• OPEC has a lot of power and has used oil as a political tactic. For example, in 1973 OPEC stopped exporting oil to countries that supported Israel causing gasoline shortages in the U.S. and other countries.

Founding OPEC MembersMark or Color Saudi Arabia, Iraq, Iran, and Kuwait (right below Iraq)

on your map. Label your Key to match your map.

Add Venezuela

Current OPEC MembersMark or color the remaining OPEC members on your map. Label your Key to

match your map.

How does OPEC play a role in the world oil market?

Summarizing Strategy: Answer the Essential Question