OPEC: The Cartel Controlling the World's Oil
Вставка
- Опубліковано 12 гру 2022
- Sign up for a CuriosityStream subscription and also get a FREE Nebula subscription (the streaming platform built by creators): CuriosityStream.com/TLDRglobal
TLDR Daily: / tldrdaily
Oil is one of the world's most important commodities, and as such, it's unsurprising that those in control of it might want to protect that power. OPEC is their attempt to do this, controlling oil markers and capturing major political power
💬 Twitter: / tldrnewsglobal
📸 Instagram: / tldrnewsglobal
🎞 TikTok: / tldrnews
🗣 Discord: tldrnews.co.uk/discord
💡 Got a Topic Suggestion? - forms.gle/mahEFmsW1yGTNEYXA
Support TLDR on Patreon: / tldrnews
Donate by PayPal: tldrnews.co.uk/funding
TLDR Store: www.tldrnews.co.uk/store
TLDR TeeSpring Store: teespring.com/stores/tldr-spring
Learn About Our Funding: tldrnews.co.uk/funding
TLDR is all about getting you up to date with the news of today, without bias and without filter. We aim to give you the information you need, quickly and simply so that you can make your own decision.
TLDR is a completely independent & privately owned media company that's not afraid to tackle the issues we think are most important. The channel is run by just a small group of young people, with us hoping to pass on our enthusiasm for politics to other young people. We are primarily fan sourced with most of our funding coming from donations and ad revenue. No shady corporations, no one telling us what to say. We can't wait to grow further and help more people get informed. Help support us by subscribing, following, and backing us on Patreon. Thanks!
2:53 pushed *down* oil price even further
US/UK: "Well well well, if it isn't the consequences of my own actions,"
100% true 😂
It is the result of megacorporations trying to protect their oligopoly. In try to keep the little guy down domestically, they created an even bigger threat. One they foolishly think they could control or reason with.
Don't forget France
Actually, OPEC is probably at a low point in terms of its power. The US and Canada, as well as Norway, are not members.
US/UK "I steal your oil and please don't complain."
At the 2:56 mark, I think you meant to say that increased wildcat production of oil pushed DOWN the price of crude oil, NOT up.
Thanks for this overview.
OPEC was mentioned in one of the episodes of season one ‘Narcos: Mexico’ too.
We should drink Oil for longevity
Nah, ur gonna be too reliant on oil
in any other business a cartel would be illegal
@elfrjzI think we should force the opec board to drink crude oil, fuck those greedy bastards
TSMC would like to have a chat with you
not in diamonds...
@@themsky8905 the semiconductor industry is anything but a cartel. If it were you would see them massive cut back on production right now since we’re experiencing a glut of over production of chips
@@themsky8905 not really since if Samsung, Intel or someone else out innovate them TSMC will lose their business
Hey TLDR. I just wanted to offer a quick correction on the price jump that the OPEC embargoes on the US and the Netherlands had caused. OPEC had merely doubled its prices in the aftermath of the Yom Kippur war, but the quintupling had been a result of the Seven Sisters seeing opportunity in adversity and themselves raising prices in supplying a oil hungry US. Timothy Mitchell’s Carbon Democracy covers the exact minutia of what happened really well.
Wow. There are no heroes or villains in capitalism. Just money.
@@ChasmChaos rather, capitalism has redefined relations as such that the hero is he who makes the most money. Talk to kids, they don’t want to be generals or statesmen like Patton or de Gaulle as they once used to. It’s more about becoming the next Musks, SBFs, and Steve Jobs.
Honestly TLDR constantly make mistakes, almost every video. I'm now torn because their content is great and 90% of time the information is helpful, but, I'm finding it difficult to trust them as well because of the errors they make 🙁
@@DJWakki would you rather trust a news channel that purposefully distorts facts in order to sell a narrative or one where mistakes tend to be due to not having enough resources?
@@ChasmChaos You missed the point I'm making, but, to answer your question, honesty No, I know ALL Mainstream News channels have an agenda and have biases view points, been like that since Media began. These days you get more Truth from Podcasts than the actual News 🙄
The Point I'm making is just TLDR has made alot of errors in videos, which does distort a view point. This one you can class as a 'minor' one, but, I remember one video about Pakistan which was misinformed and completely changed the narrative of the 'story' because of it. Most people won't bother to do research and consume, which is why it's important they reduce their mistakes. I acknowledge they are mainly factual, but they are not 100% which people need to keep in mind.
2:35, I know this might seem minor, but 1929 wasn't necessarily a "recession", but as we all know, a "depression" which is a far more serious incident.
Many economists credit the many bailout packages during the 2008 crisis to have prevented the recession from downspiraling into a depression (as unpopular as those may have been).
what everyone got pissed at was these financial institutions got bailed out and very little of that money went to people who needed it the most and whatever was put in place to prevent it from happening again was so inadequate that it was effectively doing nothing at all
The problem is that those very same bailouts extend and exacerbate the problem, not solve it. It merely kicks the can down the road. Depressions ALWAYS occur after periods of artificial inflation caused by bad monetary policy by central planners to game the system. Hence, depressions and deflation are natural market corrections.
I thought the same thing, but thought I'd misheard!!
I think we will have another depression in 2029 because the world operates in cycles
@@davidford3115 doesnt mean theyre a good thing. if you extend the possible depression into a recession long enough for market factors to start producing growth again, youve done your financial institutions a service. if you let it go into a depression because its quick and easy, you have blood on your hands. our society is built on trust, if you can maintain it even when it shouldnt be given, you stay in control. if you give it up, anything could happen. it depends on who is the next group to gain the lost trust.
I love how this story is basically the international oil version of "you either die a hero or live long enough to see yourself become the villain".
Cartels are bad enough without adding the evils of oil to them
Seems fair after the oil producing countries got taken advantage off by our governments for so long. It's like white nationalists complaining of immigrants taking from the system when they are ignorant to the fact how we got so rich in the first place
Cartels countries stay in power because of the wealth oil/gas provides
US stole Russia's share in Europe and even started the Ukraine war against Russia to do so. Remember how brazenly the USa have blown up Nordstream, and now nobody does investigation there out of "national security" concerns? OPEC defends one of it's members against US aggression, they are the goods guys here
There are no heroes in this particular story. So it's more: "you either die a villain or live long enough to become a rich villain"
@@user-op8fg3ny3j its quite funny when stuff like this happens, westerners star whining like small children
The problem with their shale oil machinations was that they by and large failed. It turns out most shale oil producers rode out the storm quite well and inflicted so much pain to national budgets of OPEC countries that they ultimately gave in.
Wait, Royal *Dutch* Shell is British!? 1:33
In the beginning 1:00 you said there were 5 major oil companies. These used to all be owned by one single company - STANDARD OIL - until the American government forced them to break apart by an act of congress.
We need an international Teddy Roosevelt ASAP
BULL MOOSIN IT UP IN HERE!!
Amen
Nah, if we switch electricity generation off of gas, transportation off of oil and to electricity, and switch home heating to electricity (with insulation to help out), we can put this whole thing in the past permanently. Yeah, certain countries will control the supply of key minerals, but you can recycle all of those. Once you build the batteries, solar panels, and wind turbines, you only care about the supply of new stuff when the current stuff breaks, and only if there's not enough recycled stuff locally to fix your stuff. That's a multi-year lead time between 'crisis' and "crisis affects my life", which is plenty of time to fix it if it's a political one (as they usually are).
Also, even if we assume that literally nothing bad will happen because of climate change and economic activity will continue unimpeded, it's cheaper to switch to green electricity and electrify everything, because commodities more or less stay the same price (adjusted for inflation) but technologies can get dirt cheap. Solar panels and batteries cost 10X more just 10 years ago. 90% price drop, and it's still on a downward trend because most of the factories that will cause economies of scale to kick in to overdrive are just being built now.
We have all the technology we need to completely exit this circus and cycle of abuse by oil cartels. Best we spend our money on that. Call your mayor and tell them to invest in heat pumps and building efficiency and an electric vehicle fleet and rooftop solar and stuff like that. It'll speed up the already-rolling ball.
The world has become too big and complicated for one "big man" to solve anything. What we need are numerous government institutions and private companies to all do their part. and that is already happening, the only question is how fast it will go.
Tax carbon and implement a citizen's dividend with the surplus
Of course OPEC would shit a brick and destroy the international economy in response so... Guess we'll just die
Good stuff!
I kept hearing Super Mages and not Super Majors, I was like damn this some high fantasy shit coming lol
You guys (TLDR) have gotten alot better recently (last few months). I am glad that you have turned things around. Long time fan.
Thank you @tldr
0.13 cents a barrel?
Wow
Thanks!
Isn't at least 30% of oil used in industry NOT for energy production?
That would mean that opec would loose their influence on energy prices, but not all of their power. We use plastic everywhere
True, but bioplastics are also a hot topic in the research industry. So who knows, maybe we can also replace that aspect of oil.
Yes, but that'd be more like becoming a dominant supplier of something like Lithium. Important commodity for sure, but doesn't underwrite the entirety of the global economy.
It's annoying to have expensive plastic, but it's way less devastating than losing energy to power the economy.
Way less, more like 5-10% depending on the year
They do want to earn as much capital as possible so they can transition before oil becomes irrelevant.
@@1mol831 The 7 companies can transition. The OPEC countries likely can't. High tech industry is a lot more difficult than pumping oil out of the ground.
Great video, about an important topic!
The only thing I would say is that at 4:48 you could have used the historical accurate flags of Kuwait, Iraq and Iran in 1960. But it’s minor, keep up the great work!
OPEC have a rubbish logo
OPEC have collapsed after this comment
@@Marco-wz3pz lol! you rubish
all that money and they couldnt afford to design a better logo
3:33 didn't know that imperial Germany is a pary of seven sisters..
Good episode. Objective as well! 😃
History of big oil . Brilliant TLDR :D
I hope the new success in fusion technology will decrease the dependence on the OPEC as soon as possible.
USA could just exploit US oil resources to beat OPEC.
@@1mol831 they just said in the video that they have already tried that
Current nuclear power technology is already pretty effective, but it unfortunately has a bad public image.
@@marcocappelli2236 "pretty effective" is misleading if you compare it to something with 0 risk of nuclear fallout and that can be run indefinitely on water (hydrogen). they only have to significantly increase the output from fusion.
@@daniel931016 I mean, relatively speaking, nuclear fission harms less people than coal, even while counting the nuclear accidents. Heck, nuclear power somehow produces less radiation than coal power.
I believe we should switch to less polluting energy sources, which includes nuclear fission, until fusion technology becomes available in a few decades. Because, let's admit, it's going to take a long while.
I am glad I made productive decisions about
my finances that changed my life forever. I am living in Vancouver Canada, bought
my second house in September and hoping to retire next year at 50 if things keep going smoothly for me
Making it out at a young age is quite difficult. I started a side hustle at 17, saved up and made some good investments. l'm 28,live on my own and having a good life for myself. Big ups to you and everyone out there tryingtryinghq
Sounds like plan, how do you put money to work?
@@muyiwamg8841 Yes it sure is. I put in money in investments and get profits. That 's how I make more money without working. This does not sound new to you right ?
@@ibrahimfaizan6047 Thanks for replying me, I've heard so many people talk about investment but none had said how to do it right.
Am hoping on you can explain more on how you make extra income from investments
Oil is such a bothersome resource.
Proceeds to say 'Royal Dutch Shell' after saying its British, come kn its right in the name. It only merged with a British company later.
Came to the comments for this
It merged in 1907, but Henri Detinger (the guy who owned the Royal Dutch OIl Company) explicitly bought the company in part because it came with a free Union Jack (and the resulting political support it afforded in the days when Britain was a global superpower). Detinger later became a vehement Nazi sympathizer, so what do you know.?
Another reason to get rid of oil and gas.
so we need to get rid of opac
you just said America was kind of making its own cartel and even staged coups and no even went to war to stop smaller counties from selling oil in NOT USD, now that them Arabs got a monopoly on something it must be evil and taken out, I mean they have economies to worry about and targets to set and reach it is legitimately a national concern for them.
please do speak of the other side of the story as well & don't forget Saudi helped USA keep dominance for decades in exchange for protection you even mentioned this in your videos.
Royal "DUTCH" shell is clearly British at the start of the 2000's
Netherlands went to British
Surprisingly accurate historical account.
glad he covered the history
You should tell people what the nebula exclusive shows are about. I don't check that often
Two thoughts:
1. Anyone interested in the history of the global oil market should read Daniel Yergin's The Prize- seriously engaging reading (and where I bet TLDR got most of their data from)
2. Kuwait and Saudi Arabia will be the last ones standing on the global oil market. They have the reserves and the low cost per barrel to produce when no other producer will.
I hope renewables and batteries eventually bankrupt them all
It will just be a renewables cartel
Sadly, that's not how capitalism works. Due to their money, they can wait for others to risk experimentation and then jump on the one tech breakthrough that works.
This is why tobacco companies are so heavily into selling vapes and the biggest investors in green-energy are coal and oil companies.
Whenever I start thinking about how oil and OPEC are and always have been one of the west its few weaknesses,
realise how great it is for the West that climate change is forcing our hand to stop relying on oil.
And then I get this funny thought about all these conspiracy theory people being right, just not for the reasons they thought.
I wonder, could it be?
Batteries are very inefficient, losing just as much energy charging them as you get from storage. Just look at the capacity numbers as the temperature drops. This is true even of lithium-ion.
The ONLY realistically viable cheap energy that happens to be clear is nuclear.
Just look at how Germany shut down their reactors a bit ago. All it takes is these guys (and our own oil barons) putting money into spreading fear of nuclear energy to keep their death grip tight.
How is there an error in every single video on this channel?
8:05 Saw the Philippine flag there, are you sure that the Philippines is part of this opec plus? I highly doubt it since my country doesn't export oil, only imports. Oil prices here are so high.
Good content. I would like to see a video on USD, how it is being used as weapon by USA and why countries can't come out of it..
USD took a massive hit. If things keep going as is, there will be two world currency. US and possibly China's dollar.
@@YukiPyro nah china uses USD for international trade so it's unlikely that the chinese yuan is used internationally.
@@YukiPyro not really, but maybe a new currency might rise and become the new global currency. Perhaps opec, india and south east Asia can join up and create a new currency, where countries surrounding like China Australia and most of Africa gets sucked into their orbit, along with some of South America. They will be strong enough to resist US dollar dominance or even turn it into a second rate currency.
4:20 oh I wounder how they did a good job at keeping them down
Haha im sure some money in their budget to make it even more impossible to find the death note
Is Esso apart of the Exxon Mobil??
Will a chocolate cartel not just lead to alternatives or will they bring in alternatives to cacao like carob as well?
Maybe slow down the output a bit guys. A few errors are getting through. Eg:
2:35 - it was the Great Depression, not Great Recession
2:55 - increase supply pushed the price down, not up
Interesting
1:22 if anybody is interested, the first one is Saudi Aramco, wholly owned by the Saudi government.
7:38 yeah my dad lost his job cuz the price of oil got too low to justify drilling for it😡😤
So it was good when UK/US were benefiting but now it is bad.
2:50 prices went down not up
Mossadegh was not replaced by the Shah but rather the Shah was given more power. Fazlollah Zaheidi was Mossadegh's successor
2:55 pushed down
These are the real bad guys, people.
The real life Shinra
Do they kill people in front of their families? What kind of boring cartel is this?
Have you not heard of the public beheadings in Saudi Arabia? They happen daily.
The Nebula bundle deal is just for new Curiosity Stream accounts.
OPEC is a great example of the USA, EU and UK having to endure what they do to other countries. The only people who criticise OPEC are the rich who resent not being richer.
I would no mind that there was a Chocolate cartel
That thing does harm your health in the quantities People consume it nowadays
Higher prices and less consumption would be good IMO
The biggest reason behind the idea is that the chocolate producing countries (specifically the farmers) are getting the *very* short end of the stick.
The major value addition in chocolate is turning the bean into the bar, a process which is atm monopolised by companies in rich nations (eg 🇨🇭).
So farmers, in spite of growing one of the most valuable cash crops, are getting paid very little when compared to the end product, hence the desire to take more control of the production process and get a bigger (and fairer) share
@@theprovost Yeah I completely agree even more now
I searched and you are absolutely right
Farmers with all the hard work get peanuts while the big companies do close to nothing and get big money
@Zaydan Alfariz Yeah that is true but since you still need the choco part either the companies would eat the profit cost (which will never happen) or pass it to the consumer
My hopes is that since these are tight times people would stop eating so much to save for more necessary itens
I know seems stupid for wishing people get less of something they like but it will be good for them in the long run since like I said it's very harmful and addictive
Watching from Iraq
aware
What happened in Iran happened in 1953 and the situation was more complex for one thing the Shah was much more than just a "figurehead" in all fairness.
& the States recently become the oil contributor
Oil industry started with a monopoly from Rockefeller. Governments taking over is better than oligarchs, but how much oil goes to the people?
Our oil. Pay up.
Good thing renewables are so cheap and powerful that Europe is fully self sufficient and has the cheapest electricity.
🤣
Yeah, the energy crunch proves that renewables are a pipe dream.
You're Soo funny mate
I hope countries start scalping lithium to sell at a plus premium to the mighty Europeans. if they want green energy, they better be willing to pay extra for EV batteries and diesel for fueling charging stations.
Eventually…. And maybe it won’t be Europe who becomes fully renewable. I think Singapore will go first.
min 4:48 Venezuela
Given the importance of oil on the global market, the organization that should be in charge of oil should be a worldwide organization that exists as a bridge between consumers, their governments, distributors, producers, and extractors.
This relationship would prevent any cartel control over the market. It would be a highly unstable setting, but given the importance of trade, it is likely there would be even less violence in the world or at least more unity in a world environment. We have very little systematic organization across the globe that can project unity amongst the human population. This wouldn't be the grand setting, but it would be a good start that can lead if more such organizations are established (like replacing the World Financial Bank and the World Food Bank) to a united worldview. Again, not perfect, but better. At least, people interested in business would be very hesistant to support any nationalism unless it was world/global nationalism.
I will now explain the five-part partnership.
1-3) Extractors, Producers and Distributors are the three chief components behind the process of providing oil, although they would differ more so within themselves than between them as there are more applications for oil than gasoline and diesel. Extractors are the companies that harvest and pump oil that involve identifying oil, extracting it, transporting it, but also securing the extraction so it can be maintained. This would consist of not only entrepreneurs and executives, but also labor due to the need for workers for it to be consistently useful. Producers are the companies that involve refineries and processes to transform the oil into products of use based on demand and need. Distributors are again a component of transportation and security, but also your local pump or gas station or convenience store where you buy the product.
4) Governments are involved due to the entry points and environmental regulations as well as preventing criminal activity and corruption which are essential for the process to yield an overall positive in all factors of interest rather than just profit. Even if you reduce nationalism, you still have regional factors to contend with that can disturb the vitality of a world system and undermine its ability to function, such as pirate activity, unwilling or unmindful participants that consequentially harm trade by producing additional costs, and pollution. This wouldn't just consist of a say from governments but also local organizations that can lobby to governments out of such matters of interest.
5) And lastly consumers. Some may argue that consumers are unnecessary due to the association of governments or vice versa, especially if you are already a democracy. I would argue this is not the case. First, not all governments are democracies. Second, not all societies want to be democracies. Third, even without being a democracy, the decision-making process concerning individuals and communities is an essential component in demonstrating and guaranteeing that the process functions as intended and is not some clever means for some people to take advantage over others. We should all enjoy the fruits of our labor, so long as we all in turn contribute to it in some meaningful way that enhances our lives collectively as well as individually.
the world thinks your proposal is cute.
@@antoniolewis1016 You sound jelly.
Royal Dutch shell is British? 🤣
Now do the western led Bretton Woods cartel.
Wasn't cartel something illegal ?
yep
inside a single country, yes in most cases - Depends on their laws. Internationally, not so much. Just look as far as TSMC like someone else mentioned above. Formaing a cartel in this scenario is more like a collective defense/security guarantee and economic tool not so different from companies banding together to get cheaper goods.
It's just a name for groups or individuals coming together to maximise profits. Germany pre-WW1 springs to mind where it was oerfectly legal and allowed for big businesses to make things cheaper with economies of scale. It can also refer to drug cartels.
Why are you calling them a states ? There are counters aren’t they?
@Yannis Karageorgiou thx for tiene explanation 👍, but still why I hear it all the time some country's called states and they call country's
'ate oil, 'ate capitalism. Luv ecology, simple as
"The Great Recession" 😄🙃
No. I think we can safely say The Great Recession happened around 2008, not 1929.
idk if you said drags or dregs, but don't put me in this.
They was also a pretty big oil spill in Kansas recently. One of the biggest onshore oil spills in recent history in the USA!
Another reason why we need to speed up the transition to get off oil!
So, what is the alternative? Solar and wind is NOT viable without massive government subsidies. Only Nuclear is a realistic alternative for cheap energy. And without cheap energy, your economy collapses.
The Great Recession did not happen in the 1920s. (2:35) ... The Great Depression happened.
How did nobody catch this mistake?
2:35 *Great Depression (I know y’all know 🤗)
Last time I checked, I heard prices have been dropping and I've seen this at my local gas stations. They're now below $3.50.
And in the mid 1990s they were less than $1 a gallon. Hell, back in 2018 it was hovering around $2.
"Never settle for less than you deserve. Demand the best, accept nothing less.” -Thomas Morton.
@@davidford3115 how exactly do you force Other countries to produce more oil?
@@davidford3115 and during the pandemic, it was almost below $2.
The least cool cartel, if cartels were cool
Good on them
So much for Western Liberal Policy.
Ya right..i believe u ...that why west nation is so kind of opec country..
This video would have benefited from a little extra context. I understand the schtick of the channel being tl;dr but I don't think that needs to come at the cost of quality.
West should invade OPEC
Opec is a the definition of politicians being hypocritical
precisely. Lambasting Russia while sucking up to Gulf states
OPEC is done for. Russia has forced us to organise and create price caps, that’s not going to disappear after the Ukraine ends...
Isn’t that the same Cartel that the US used to lower oil prices in the 80’s in order to collapse the Soviet Union’s economy which was a success ending the union and unified Germany 😊
I hate this shitty little Rock we live on. The more I learn the less I want to be here, lol
I would argue that there is a case to be made that OPEC is necessary as a counterweight to the concentration of power in the west.
America just perfected cold fusion and this will destroy opec once and for all
I sincerely hope that the yanks boycott all opec countries from getting this technology
With the USA having a huge oil production and reserves, why not just pump it into the markets, instead of keeping it for future use 👍
Because it's controlled by capitalist corporations that are doing very well right now. Why produce more if you're already making bank? The government cannot force them to produce more because that would be communism or something. Besides, politicians always get money from oil companies so there's no reason to try and force them to produce more.
@Zaydan Alfariz doesn’t matter it will ‘look’ like communism to some people and the companies will use that to make it look like the government is trying to push them into nationalization
Interesting. When 7 Western companies controled all oil on earth it wasn't called a cartel. It seems that is only wrong when someone else uses the same tactics.
"Cartel" doesn't just mean "bad thing", but an organisation that controls supply to keep prices (and profits) high. 7 western companies controlling all the oil on Earth was clearly not a good thing, but if their prices are controlled by the free market responding to supply then it's not a cartel.
Like, did you even pay attention to the video?
Seriously, nationalizing oil seems perfectly reasonable for public policy
@@HiHowdyDoody their oil ,their choice eyy?
@@aagamanpokhrel4113 unitl someone is marching in and changing that again.. In a perfect world
@@John_Doe448 TLDR forgot to add the part of history where we joined in with Russia to invade Iran and occupy the oil fields
"Somewhere Europe has to grow out of the mindset that Europe's problems are the world's problems but the world's problems are not Europe's problems." Indian foreign minister S. Jaishanker
Very true my brother. Europe needs to remember what they did to their colonies. they stole trillions from India.
Okay so Europe should just cut all Foreign aid and keep the money for ourselves. Let’s see if the world wakens up. How about banning all European charities and NGOs from operations outside Europe. See how quickly the world wants Europe back.
How about all European militaries pull out of its overseas peacekeeping missions. No French forces in west Africa fighting Boko haram. Saddam hussein would still be in power war mongering fighting Iran and seizing Kuwait. Good luck to Somalia it would fall apart. The UK gives 98 million to India in foreign aid while India spends its money on a space programme.
Bro, India is also affected by this shit cartel, or at least the common people. No matter because of them or the seven sisters, all cartels or oligarchs or mafia are bad.
I'm not gonna justify European colonization, that shit is beyond horrible tho.
@@Normalguy1690 We don't need you grow out of the backward mindset lol
When someone else do it then you call them cartel. While west do the same with technology and banking system you say nothing. Hypocrisy
Lmao, Royal dutch shell was not british. It only became british quite recently, weird mistake since it's literally in the name
Its DUTCH SHELL not BRITISH SHELL
2:53 "(...) which just pushed up oil prices even further, and by 1931 they'd dropped 85%".
...am I missing something here?
Its way past time the US deliver some freedom to these gas station countries.
The US should just pull ALL support and aid to OPEC members and start pumping oil domestically again.
Suddenly that relevance would crumble as hungry neighbors eye the oil wells...
The problem is this relationship between US and OPEC is a two sided deal.
Pulling support from OPEC means no more selling oil in dollar, which means China will be the best partner to replace US for OPEC at that time, which I and even a 5yr old child can think is not a good idea.
@@varunshivan9569 On the other hand, the US dollar is the world reserve currency, so OPEC can't exactly afford to pull off if they want to do international trades (generally speaking)
The US freezing transactions of USD to OPEC would cut into their trade power to the point of business being nigh impossible for members
@@HyperScorpio8688 USD is the reserve currency because Saudi accepted the US request to sell oil only in dollars and in reward guaranteed the Gulf security
@@kayz3947 Except for...
"Because many central banks and financial institutions around the world want to hold U.S. dollars and dollar- backed securities like U.S. Treasury bonds, there is strong demand for U.S. dollars."
@@HyperScorpio8688 59% of world trade happens on dollar and majority of them for oil, if US were to cut that too, I think this will be like shoot yourself in the leg.
The last three treasury officials of US has strictly cautioned against this stupid move, mentioning these kind of decisions will only back fire as the world (non-western countries) will work together to move away from western financial system altogether.
Moreover seizing OPEC US accounts will only lead to international court. As the west always loves to say “international rule-based order”. You can’t say in court “I seized them because I didn’t liked what they did.” There are no rules that says “do as I say”.
Furthermore, the OPEC (gulf countries) knows that oil will not sell that much in future that’s why they need to diversify their income, in this case China is a perfect supreme partner for them, any action which is based on emotions will further damage the west-opec ties and will put opec entirely in china’s pocket which is something to avoid right now.
This is Capitalism idealistic theory vs practice (always sucks in practice, unlike when countries leam towards Market Socialism).
[Edit: obviously i meant Norway 🇳🇴 which leans most Market Socialist ( if using tetma correctly); or Catalonia & Spain in other ways (Mondragon Corporation).
Venezuela was never market socialist, it was a strongly Command Economy (Market vs Command) reliant on one Commodity; i don't know how much on Capitalist/ Socialist Spectrum they were (Workers or Users electing CEOs & Board for means of economic prodiction.
Please don't confuse Market/Command Spectrum with traditonal Capitalism/Socialism Spectrum.]
Yeah, Market Socialism is even less successful. How many examples of centralized planning and control do you need before you realize that it is just a pathetic pipe dream?
Oh, and don't conflate Nordic SOCIAL DEMORACY with socialism. The two are NOT the same thing.
You mean the Market Socialism of Venezuela? Where oil wealth is squandered.
@@franknwogu4911
No, obviously i meant Norway 🇳🇴 which leans more Market Socialist ( if using terms correctly). Venezuela was not market & socialist, it was a strongly Command (Market vs Command) reliant on one Commodity.
@@franknwogu4911
May i suggest you look up what such terms mean?
You might even find out you are a Market Socialist with a preference for small & medium business.
@@franknwogu4911
I try to use terms in the historically correct way, rather than how CPP, USSR or US propaganda changed them.
Thank you for keeping a non-biased news! CNN could only dream.
America could cripple that cartel by drilling our own oil and driving prices down. We need president Trump to do what he did as a president which is exactly that. Vote Trump if you wish to have cheap affordable energy.