Gents, I have very simple assignment,, In your International Economics textbook, Carbaugh (2017, Chapter 7) provided a historical account of OPEC and its power in controlling the global petroleum...

The dynamics OPEC has faced in the global market in the last ten years
OPEC is an intergovernmental organization with eleven member countries. Coordination and uniform petroleum policies among its member to secure stable and fair price for crude oil is the main objective of OPEC. Oil is leading commercial inputs in the present world and changes in supply and demand, technological breakthrough, regional issues, and financial conditions in leading major economies will have major impact and variations in the price of oil. Over the past five years price of crude oil have halved due to dynamic changes in the global crude oil market (Veronica Cinti, 2007). This sharp fall in price has triggered crisis in major oil exporting countries mainly OPEC. Sharp drop in price has halted the free flow of petrodollars that have been flowing in global financial market and providing costless capital to financial market. Drop in price of crude oil has given windfall gain to oil consuming countries. Slide in price has stemmed from increasing supply of crude by US shell companies that have improved their efficiency in production. Though shell companies have improved their efficiency in production the fact and can dominate the market with cheap source of energy the fact remains that members in the OPEC enjoy some of the cheapest crude oil source.
As per the latest report published by Goldman Sachs Group Inc. OPEC members new project where OPEC members are making investment can make profit of even when crude oil price remain $20 to $40 per barrel. Present crude oil price is hovering around the same. Though the US shell companies have achieved competitive advantage they still need to have a crude price of $50 to $55 per barrel to make their investment venture profitable. Not only they have to make profit but has make good of losses incurred all previous years (Lomborg, 2012).
A dominant player in the OPEC is Saudi Arabia and 75% of the global demand is met by the export done by the...