How effective is OPEC?

Answer 1

The effectiveness of OPEC varies dependent of political and economic factors. During the 1973 OPEC induced oil crises their cartel actions created economic emergencies on global economies whose infrastructure were dependent on crude imports. The rise of the United States in 2014 as the world's largest oil and natural gas producer further weakens the effectiveness and coercive powers of the cartel. Moreover, non OPEC states such as Canada and Russia further weaken OPEC's threat of using oil as a weapon. Lastly OPEC states such as Saudi Arabia can and have been known to break the cartel producing as they wish to counteract potential oil crises.