In this industry, radical actions by either producers or consumers can have unpredictable consequences. The oil and gas industry is easily influenced by global economic and political conditions. In response to the volatility in basic supply and demand, the Organization of Petroleum Exporting Countries (OPEC) was created in 1960. OPEC’s main goal is to ensure stabilization of prices in the international oil markets. In 1974, the United States organized the western consuming nations in a united front against OPEC with the organization of the International Energy Agency (IEA). Member nations were called upon to reduce their reliance on Middle East oil and thereby have a greater influence on the price of oil.
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