The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental organization. It was created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela to coordinate and unify petroleum policies among member countries, in order to secure fair and stable prices for petroleum producers. For example, if global demand for oil decreases, the organization may decide to lower production targets for its members, thereby reducing the global supply and stabilizing prices.
The significance of this organization in the context of AP Human Geography stems from its influence on global economics, geopolitics, and resource distribution. Its decisions regarding oil production levels have significant effects on the economies of both member and non-member states, affecting trade patterns, transportation costs, and overall economic development. Historically, actions taken by this entity have led to substantial shifts in global power dynamics and have been a factor in various international conflicts and alliances.
