OPEC Collaborations and its Power over Oil Market

Background on OPEC

OPEC is a permanent intergovernmental organization of 13 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965.

OEPC has passed through various challenges since 1960s. It was formed at first by five oil-producing developing countries at a time of transition in the international and political landscape. In 1970, its member took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. In 1980s, OPEC’s share of the smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. In the 1990s, a solid recovery followed in a more integrated oil market, which was adjusting to the post-Soviet world, greater regionalism, globalisation, the communications revolution and other high-tech trends.

During the 2000s, an innovative OPEC oil price band mechanism helped strengthen and stabilise crude prices in the early years of the decade. From 2000s till now, the global economy represented the main risk to the oil market early in the decade, as global macroeconomic uncertainties and heightened risks surrounding the international financial system weighed on economies. Escalating social unrest in many parts of the world affected both supply and demand throughout the first half of the decade, although the market remained relatively balanced.In addition to the collaboration between OPEC countries, OPEC had several collaborations with non-OPEC countries, such as China; producers and consumers, etc. 

What needs to be done?

So what are you supposed to do in this TMA? 
You are to choose ONE of the collaborations identified above to study and to answer the questions below in approximately 1500 words. Your answer has to be in essay format with an introduction, and a conclusion for each question. 

Before choosing a collaboration to study and analyse, make sure to do your own research and ensure that the information needed for this TMA is available. This is very important since this TMA does not only rely on course material but on external resources that you will be choosing. 

Challenges Faced by OPEC

QUESTIONS

Question 1 (50 Marks) (Word limit: 750 words)

Why did OPEC decide to team up and collaborate with other companies? Analyse the partnership that you have chosen as your case study. 

Hint: in your essay, you need to consider the following:
-    The six bases for collaborative advantage. 
-    The collaboration chosen and identify the general aims of the partnership and the main bases considered.
-    Discuss, based on the case chosen, whether the end result is collaborative advantage or collaborative inertia. 
-    Clearly identify the collaboration you have chosen and the resources you are referring to. 

Guidance
-     Pay attention: do not to copy information as is whether from the course material or the case you have chosen. You are to provide a discussion and demonstrate understanding of various concepts and not just list and describe. 
-    YOU MUST REFER TO EXTERNAL RESOURCES as they are the main source for the TMA in addition to course material. 
-    Remember to cite your sources in the text and to prepare a table of references at the end. 
-    Referring to course material alone is not enough. Referring to external resources alone is not enough. You need use the course material as the base to explore and explain the information in the chosen external resources.  

For many years, OPEC had a power over oil pricing and setting restrictions on the oil market. Critically discuss to which extent OPEC power over the oil market diminished over the years. 

Referring to these three resources is MANDATORY. In addition to these resources, you may refer to additional Hint: in your essay, you need to consider the following:
-    Power over, power for and power to. 

-     Do not copy information as is whether from the course material or the articles you are to refer too. 
-    You are to provide a discussion and demonstrate understanding of various concepts and not just list and describe. 
-    YOU HAVE TO REFER TO THE THREE ARTICLES mentioned in the question as they are the main sources for the TMA in addition to course material. You may refer to additional articles to support discussion. 
-    Remember to cite your sources in the text and to prepare a table of references at the end. 

1.    Cut-off date: Specific date to be specified later by deanship. If you feel that you are unable to meet the cut-off date of the TMA because of unusual circumstances, please contact your tutor as soon as possible to discuss a possible extension to the cut-off date. The exact cut-off date will be assigned in due course. 
TMA weight: 20% of total course grade. 
2.    Course material: 
-    Chapters 1 and 10. 
3.    Format: Write your answers in essay format. Failing to do so could result in grade deduction from presentation marks up to 5 marks. You may, however, use bullet points, diagrams, tables, or any graphs to support your arguments. 
4.    Plagiarism: Write your answers using your own words. Plagiarism will be penalized depending on its severity and according to AOU plagiarism policy (Enclosed after these instructions you will find the Arab Open University Rules of Cheating and Plagiarism).
5.    Word count: Answers are expected to be within +/- 10% of the word limit. Answers that fall below or above this range can lose up to 5 marks. 
6.    Referencing:  Use Harvard referencing style for in-text citation and make a table of references at the end. Failing to do so could result grade deduction of referencing marks up to 5 marks.  
7.    Research: Use a minimum of two additional sources of information. It is strongly recommended that you use scholarly articles found in the E-library at LMS. You can lose up to 5 marks if you do not use at least two external sources. In addition, although text books assigned in the course may be used freely as references, you are required to use a minimum of 2 external sources. It is recommended that you use scholarly studies found in the E-library link at the LMS. Failing to do so could result in grade deduction of referencing marks up to 5 marks. If you do not find required additional information at the e-library, you can always refer to Google scholar. 

The Arab Open University Definitions of cheating and plagiarism
According to the Arab Open University By-laws, “The following acts represent studies of cheating and plagiarism: 
•    Verbatim copying of printed material and submitting them as part of TMAs without proper academic acknowledgement and documentation.
•    Verbatim copying of material from the Internet, including tables and graphics.
•    Copying other students’ notes or reports.
•    Using paid or unpaid material prepared for the student by individuals or firms.
•    Utilization of, or proceeding to utilize, contraband materials or devices in examinations.”

Examples of Plagiarism
Copying from a single or multiple sources, this is where the student uses one or more of the following as the basis for the whole, or a good part, of the assignment: 
1.    Published or unpublished books, studies or reports
2.    The Internet
3.    The media (e.g.TV programmes, radio programmes or newspaper studies) 
4.    An essay from an essay bank
5.    A piece of work previously submitted by another student
6.    Copying from a text which is about to be submitted for the same assignment.