Organization of Petroleum-Exporting Countries

By Abid Ali in Business on June 23rd, 2011

The "West" is quick to point the finger at OPEC whenever oil prices are on the rise. All manner of statistics are produced to blame OPEC nations for their economic troubles.

Take for example that the cartel's members would earn $1 trillion dollars this year as crude trades above $100 a barrel. It may be so.

But let’s not forget that almost $600bn leaves these oil producing nations in remittances (western immigrants benefit as well), company profits (Western oil companies, included) and through the import of consumer goods. In effect, these nations are keeping the global economy ticking.

Let’s be clear, OPEC nations produce 40 per cent of the world’s oil. That means there are nations that produce the other 60 per cent.

By Teymoor Nabili in Business on November 10th, 2009
Photo by Getty Images

The Guardian reports:

[A] senior [International Energy Agency] official claims the US has played an influential role in encouraging the watchdog to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves.


Washington's motive, apparently, is to prevent panic in the markets when traders realise the world has much less oil than we've been told.

The accusation may appear dramatic, but the Guardian's piece is not actually saying anything that wasn't already in the public domain.

Warnings about declining supply and the theory of Peak Oil, have been around for decades, and the IEA's estimates have long been regarded with scepticism.

Al Jazeera Live

What's Hot


Recent Comments

This work is licensed under Creative Commons. Please read our attribution policy.