Opec Warns Against Reducing Demand for Oil

Countries across the world rely heavily on oil andcould lead to reduced availability in the future.
its byproducts to create much of the energy thatSuch declaration is cause for concern since history
their citizens consume. The availability of gasolineand the principles of economics demonstrate that
to power vehicles, boats and aircraft in the Unitedreduced supply of a high demand product leads to
States of America is dependent largely upon oilhigher prices. Al Hamli reasoned that the exporting
that is imported from other nations, andcountries have minimal resources and that hefty
particularly from members of the Organization ofinvestments in production when demand is
Petroleum Exporting Countries (OPEC).uncertain would be financially wasteful.
OPEC, founded in 1960, is a conglomerate ofThe United States and other industrialized nations
major oil producing and exporting nations that arerely heavily on fossil fuels for energy to fuel
estimated to produce 40 percent of the world'svehicles, heat homes and to produce and
oil and to possess about two thirds of the world'stransport a multitude of other oil dependent
known oil reserves. OPEC monitors the worldwideconsumer products. Nonetheless, concerns about
oil market and establishes pricing for oil whichthe limited nature of oil, unrest about the
affects people throughout the world. According toenvironmental impact of oil and a long held
OPEC's mission is "to coordinate & unify thedependence on imports of foreign oil have
petroleum policies of Member Countries & ensurecontributed to a substantial movement to reduce
the stabilization of oil prices in order to secure andependence on oil for energy.
efficient, economic & regular supply of petroleumThe emergence of alternative forms of energy,
to consumers, a steady income to producers & asuch as wind energy and bio fuel is threatening to
fair return on capital to those investing in theweaken world reliance on fossil fuels for energy in
petroleum industry." The organization also setsthe long term. However, the tremendous extent
production quotas for most of its members.of the world's reliance on oil and natural gas
The Associated Press reports that the presidentsuggest that any changes impacting the demand
of OPEC, Mohamed Al Hamli, has asserted thatfor oil that do take place will do so gradually.
policies aimed at reducing world dependence on oil