Question

Select an oil-rich and oil-poor country in the region and discuss the differences between their economies, government, and role in global geopolitics.

Answer 1

The oil rich country - Iraq is covered by desert; and the country's geography does not support the development of most of the industries. Before discovery of oil, most of the residents of the region had traditional lives and made a living by raising animals, fishing, or farming. However when large energy companies from the oil-poor country such as U.S. and Europe started drilling for oil, their life and economy changed. Most of the oil-poor country in the world, such as the United States depends on oil rich country to sustain a variety of industries. U.S. have diversified economies and when industry fails or even does poorly, there are others to pick up the slack

OPEC, also known as The Organization of the Petroleum Exporting Countries was founded in Baghdad, Iraq, with the an agreement that was signed in September 1960 by five countries namely Islamic Republic of Iran, Saudi Arabia, Iraq, Kuwait, and Venezuela. Currently there are 14 members in the organization. It increased the prices of oil and in response to higher gas prices, consumers in the U.S. found ways for reducing the consumption of OPEC oil. As global oil supplies began to rise, prices fell sharply and Iraq also had to suffer.

The Iran government are faced with planning for a future without the resource that has sustained the country's economy. U.S. decided not to join OPEC for the avoidance of future oil crisis. Although the prices of oil are high now, but in the coming years the more unconventional oil and gas would likely to leave U.S. shores. The more large logistics organisations and others would shift to innovated optimized technologies that will limit the usage of oil. Moreover there would be the bevy of alternative fuels for transport waiting in the wings for the new oil price spike, inclusive of natural gas, electric batteries, and hydrogen. Thus the U.S alliance for oil-for-security is not needed with OPEC.