OPEC

(Organization of the Petroleum Exporting Countries)

Oil Crisis In The 1970's

OPEC was established in 1960 to control the petroleum production and export policies of its members. OPEC’s headquarters, first located in Geneva, was moved to Vienna in 1965. Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela were the original members. OPEC countries supply about two-fifths of the world's oil consumption and possess about two-thirds of the world's proven oil reserves.

The OPEC oil crisis was a major issue during the 1970's. The problem started when Egypt went to war against Israel. There was a major oil embargo against the U.S. The U.S. was without oil from the Middle East. Oil prices increased because of the U.S. support of Israel in 1973.

Important Terms

Embargo--is the partial or complete prohibition of commerce and trade with a particular country

Consumers-- is the one who pays to consume the goods and services produced.

OPEC 50 years later
OPEC 50 years later