OPEC Oil Cartel Unexpectedly Cuts Production To 1.16 Million Barrels A Day
OPEC has been accused of price fixing and manipulating the world oil markets for profits
In a surprising move, OPEC announced an unannounced cut of oil production from 2 million to 1.16 million barrels a day, causing gas prices to skyrocket. The current price of oil sits at around $70 per barrel and is expected to rise to $80 with the cut, leaving OPEC producers still making a healthy profit while consumers feel the impact at the pump. This unexpected move by OPEC has renewed calls for dismantling the oil cartel.
Many people refer to the Organization of Petroleum Exporting Countries (OPEC) as a cartel that has manipulated the world oil market for decades. The history of OPEC is one of using its power to control the world oil market. OPEC was formed in 1960 in response to Western companies holding the majority of the world’s oil reserves. The goal of OPEC was to unify petroleum-producing nations to gain power over the pricing and production of oil.
Since its inception, OPEC has hurt the global economy. By artificially inflating prices, OPEC has cost consumers trillions of dollars. Furthermore, by restricting production, OPEC has caused shortages and increased dependence on foreign oil. By controlling such a large share of the world’s oil supply, OPEC has contributed to global economic instability. For example, during the 1973 Arab-Israeli War, OPEC imposed an oil embargo on countries that supported Israel, leading to skyrocketing gas prices and long lines at gas stations worldwide.
There are several reasons why dismantling the OPEC cartel is essential. First, it would lead to lower gasoline prices for consumers. Second, it would increase competition and innovation in the energy sector. Third, it would reduce dependence on foreign oil supplies. Fourth, it would help to stabilize the global economy.
In order to dismantle the OPEC cartel, certain steps must be taken. Major non-OPEC producers, such as Brazil, the United States, and Canada, must be brought into an agreement to increase production and break away from cartel quotas. Russia would be a key partner, but considering the war in Ukraine, it is doubtful as the world is trying to ween itself off Russian crude. Alternative energy sources such as solar and wind power must be developed and promoted as viable substitutes for fossil fuels. International organizations such as the International Energy Agency must be more aggressive in their recommendations for oil output annually.
The key step to dismantling the OPEC cartel is to increase oil production in non-OPEC countries. Increasing the production of these countries can be accomplished by providing financial and technical assistance. The second step is to reduce the consumption of oil in OPEC countries. This can be done by increasing oil taxes and investing in alternative energy sources such as solar and wind power. Lastly, encouraging competition among OPEC members can be done by opening the oil market to new entrants and removing government subsidies for oil production.
If OPEC were to be dismantled, there would be positive and negative consequences. On the positive side, dismantling the cartel would lead to lower oil prices, benefiting consumers worldwide. It would also increase competition in the oil market, leading to more innovation and better-quality products. On the negative side, dismantling the cartel could lead to instability in the global economy as oil-producing countries attempt to adjust to lower prices. It could also lead to conflict between different OPEC members as they compete for market share.
While there may be some short-term pain due to dismantling the OPEC cartel, it is essential in the long run for the global economy’s stability and for ensuring that consumers have access to affordable energy. It is time for major oil-producing countries to take action to end the OPEC cartel and create a fair and free global oil market.
Poetry | Rivers Beyond Embankment
Nigeria’s Former Jonathan Tells African Leaders To Put Humanity First
Joke Falaju, Abuja Bags African Heritage awardFormer President Goodluck Jonathan has urged African leaders privilege to hold public offices to become servants of the people, and not turn themselves into the “bosses of the people”.Jonathan stated this while receiving the African Democracy and Peace Icon…
7th Edition Connected Banking Summit East Africa – Innovation & Excellence Awards 2023 Concludes
POSTED ON MARCH 28, 2023 BY AFRICA BUSINESS The Summit brought together the best and brightest minds in the banking, financial services, fintechs and techfin sectors. The event, which took place on 7th March 2023, featured insightful speakers, award-winning companies, and top-notch sponsors. Attendees were treated to a range…
2020 Awards | Social Media For Social Good Award Announces 100 Micro & Macro Social Media Influencers For Good
Social Media For Social Good Award Announces 100 Micro & Macro Social Media Influencers For Good and Set To Award 25 Of Them On The 13th Of June 2020. The most anticipated list of Nigerians using social media for social good which is curated by…
Ergonomic Furniture Dealer Formfunc Studio Awarded SA’s First 6-Star Green Star Award
-African Independent The Green Building Council of South Africa (GBCSA) has awarded Cape Town-based Formfunc Studio, a leading ergonomic furniture supplier, a 6-star Green Star rating following the recent fit-out of their office, showroom and DC in Johannesburg. The project, led by specialist sustainability and…
The Risk And Reward Of ChatGPT In Cybersecurity
Juan is an experienced CTO with a demonstrated history of working in the computer and network security industry. He is an information technology professional skilled in SAP and Oracle applications, computer forensics, vulnerabilities research, IPS/IDS and information security. Unless you’ve been on a retreat in…
Explained – History Of Money From Fiat To Crypto
What is money? Money as a concept has been a cornerstone of human civilization and economic development. To start with the latter, money is a method of storing value and worth, and it also functions as a medium of exchange that allows individuals to exchange…
Studies Show That Nigerian Crypto Foreign Investment Is At A Record Low
Foreign direct investment in Nigeria fell by 33% last year due to a severe shortage of dollars, which discouraged crypto companies from expanding into the country. The largest economy in Africa has a foreign investment problem despite exponential growth in crypto adoption. The National Bureau…
Growing The Bitcoin Development Ecosystem In Africa
– Abubakar Nur Khalil | Bitcoin Magazine Bitcoin development in Africa, with a proper regulatory environment, could equally accelerate the continent and the technology. In this piece, we’ll be analyzing the current state of the Bitcoin developer ecosystem in Africa, ways to improve it and…