OPEC The Organization of Petroleum Exporting Countries (OPEC) was organized in 1960. The world was changing and developing rapidly, resulting in the demand for oil doubling every seven years. (OPEC) consists of many of the major oil producing countries including Saudi Arabia, Iran, Iraq, Kuwait, the Arab Gulf States, Nigeria, Venezuela and Algeria. OPEC does not include Russia, the United States, Canada, Norway or the United Kingdom as some of these country were not producer at this time. The fledgling OPEC flexed its muscle in the 1970's. Oil prices increased by 70% to $3.90 per barrel in October 1973 and then to $8.00 per barrel in January 1974. Arab members of OPEC placed an embargo on oil shipments from the U.S. and the Netherlands for their support of Israel. With the increase in the OPEC governments' equity ownership of oil reserves, control over world oil supply by oil companies was further reduced. Prices shot up to $24.00 per barrel in December 1979, $34.00 per barrel in October 1981 with a drop to $29.00 in March 1983. Prices in 1993 and 1994 ranged between $11.00 and $22.00 U.S. per barrel. This price is set on world markets such as the New York Mercantile Exchange. Oil is traded in futures contracts for delivery in two months time. During this same period drilling contractors built new fleets of offshore rigs and the price of construction rose along with the demand. This meant that many contractor were deep in debit. and were totally unprepared for the major down turn that started in the early 80's and still continued into the mid to late 90's. Many companies never recovered. Oil is now traded as a commodity and the price fluctuate in value, the "real value" of energy is now being realized. But for many of the companies of the boom days there will be no recovery