Eduqas A-Level Geography A110QS
Coastal LandscapesLandscape
Glaciated LandscapesLandscape
Changing Places
Water and Carbon Cycles
Global Migration
Global Governance of the Oceans
Tectonic Hazards
EcosystemsContemporary theme
Economic Growth and Challenge: IndiaContemporary theme
Economic Growth and Challenge: ChinaContemporary theme
Development in an African ContextContemporary theme
Energy Challenges and DilemmasContemporary theme
Weather and ClimateContemporary theme
Geographical Skills
Energy Challenges and Dilemmas
OPEC, national governments and the oil and gas companies
- 3 things to know
- Component 3 Section B
Overview
National oil company, three international oil companies that operate globally and production sharing agreement.
What you need to know
Answer each one before you reveal it.
What share of the world's oil does OPEC control?
How does OPEC attempt to manage the oil price?
Questions from this subtopic
Each one with the model answer underneath.
- 1
When and by whom was OPEC founded?
Model answer
OPEC was founded at Baghdad in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The stated aim was to coordinate petroleum policy among members.
- 2
What share of the world's oil does OPEC control?
Model answer
OPEC members hold around 80% of the world's proven crude reserves. Members supply roughly 30% of world production.
- 3
How does OPEC attempt to manage the oil price?
Model answer
OPEC sets production quotas for its members in order to raise or restrain total supply. A supply cut lifts the price provided members comply with their quotas.
- 4
Why do OPEC quotas often fail to hold?
Model answer
Each member gains by producing above its quota while the others cut. Non-members outside the agreement can also expand output and take market share.
- 5
What is OPEC+?
Model answer
OPEC+ is the wider grouping formed in 2016 that adds Russia and other non-OPEC producers. The alliance coordinates production cuts across a larger share of world supply.
- 6
Describe the 1973 oil crisis.
Model answer
Arab producers cut output and embargoed states that supported Israel in October 1973. The oil price roughly quadrupled within months and triggered recession in importing countries.
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