What would happen if the United States busted up OPEC?

Question

This is one of the open-ended questions my Economics teacher has given and he wants a thoughtful answer. I would really appreciate it if someone can help me :-)

Answer 1

The price of oil would go up, and almost all former OPEC members would switch from US dollars to euros as the currency of choice. Both would be very detrimental to the US economy, and the latter would virtually render the US dollar worthless.

Answer 2

The US cannot "bust up" OPEC, at least not anymore. The acronym is Organization of Petroleum Exporting Countries. 10-20 years ago we were the main buyers of all the oil, but not anymore, which is one of the reasons the prices have gone up-supply and demand. The US can no more bust up OPEC than it could bust-up the World bank......

Answer 3

Honestly, you have an awesome teacher.
The US should NOT bust up OPEC. The world is already mad as heck at us. The US is using the correct diplomacy. We are allowing OPEC to exist and trying to remain diplomatic with all oil-producing countries. Yet most important of all is that President Bush has emphasized the importance of alternative fuels since his first term.

Answer 4

no longer plenty which could influence you. He extra perfect decrease the spending or the financial Doom later on down the line will make the final Recession/melancholy(has it even ended?) we had appear like an afternoon interior the park... what is going to take place then is they are going to deliver out the Social secure practices tests and repair the debt (they nonetheless herald money and Social secure practices, in the present day, will pay for itself out of our tests). they gained't have the potential to do quite some the rest nevertheless. Arguably a sturdy element. in case you forget approximately relating to the overpaid government workers no longer getting tests. nevertheless the militia won't get carry of tests and that's no longer stable of direction. what is going to take place is our lives as voters will proceed, the sky won't fall and the idiots interior the Senate will could bypass a house invoice faster or later which Obama will sign. in any different case they gained't be doing something, no longer to show spending which Obama is hooked on. we are able to look to Michigan because of the fact the example. Michigan's international did no longer explode whilst their state government shutdown. A Federal government shutdown would be plenty a similar on a greater scale. rigidity? Nope, grab some popcorn and pull up a chair. verify to maintain the pitchfork and torch handy in case they desire to proceed the idiocy of unsustainable deficit spending.

Answer 5

Oil prices would drop like a ROCk....they would come down faster than a democrat could whine in protest.....you would have former members competing to give the best price rather than monopolizing and setting prices...