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Monday, November 19, 2012

Should US join OPEC?

The Organization of Petroleum Exporting Countries (OPEC) is always talked about when it comes to international oil. The organization made up of 12 oil producing countries effectively controls a large part of the global supply of oil. As a result their actions pretty much determine international oil prices. But recently there is another country that has emerged as a major oil producing country. This country is none other than US. Owing to improved technology and techniques, US is set to become the largest oil producing nation by 2020. As per the International Energy Agency, it would surpass Saudi Arabia in terms of oil production. But unfortunately this glory is expected to last for only 5 years. After that it would take the second seat below Saudi Arabia. Nevertheless given the fact that it would be a major oil producing nation, the question now is should it join OPEC? After all the ability to pump 11.1 m barrels of oil per day by 2020 should earn it this status. Whether it will happen or not is something that remains to be seen.

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