The Impact of Oil Prices on Economies of OPEC Countries Essay

The Impact of Oil Prices on Economies of OPEC Countries - Essay Example This research paper presents exploratory study, that deals with the overall economic issues, that OPEC countries face in the world economy. The purpose of the paper was to study the overall impacts of oil on OPEC countries. This research had followed a quantitative approach, as the collection of quantitative data is essential for developing a stronger academic framework. United States, Europe, and Japan all are desperate to lessen reliance on oil for safety and ecological reasons. The ways that have been projected are dual: fuel replacement for nuclear or more competent usages of energy. Some advancement has been realized on both fronts. But the cutbacks required mitigating the dependence on oil from Iran, Venezuela, and other OPEC states are further than what can be gained in the short or medium-term. Economists developed variety of theories about the role of OPEC nations in wielding its influence on the marketplace, whether through the self-governing projects of individual associates, via actions and plans commenced by semi-autonomous alliances functioning within the huge groups, or through combined plans cuddled and carried out by the organization en bloc. It is a question, whether OPEC has ever worked effectively in the way of a typical ‘interest group’. Still, OPEC nations have limited production in approaches that are not related to the domestic dearth of oil The American shift in paradigm toward alternative fuels causes some concern in OPEC countries that can see America’s demands lessen over a period of time.