Identify Country A.

Briefly describe what is meant by the OPEC cartel.

Explain two geopolitical impacts of the rise in global oil consumption since 1990.

Suggest two reasons why sources of renewable energy have become more important in many countries in recent years.

China [1 mark].

Award [1 mark] for a comment that recognizes what OPEC is – eg the Organization of Petroleum Exporting Countries or names of the members (Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela). Award [1 mark] for the operation as a cartel – formed to fix prices and/or production quotas.

There are many possibilities.

Award [1 mark] for each basic explanation of a valid impact and a further [1 mark] for its development.

The increase in global consumption has led to geopolitical pressures in some parts of the world as oil-hungry countries seek additional supplies of oil to meet their anticipated future demand. It has increased tensions in parts of the Middle East since that area has the world’s largest oil reserves to which oil-importing countries such as the US want to preserve their access. Equally, it has led to growing international tension over likely sources of oil, such as those in the Arctic, Sudan and South China Sea, that are currently not exploited. On the other hand, the rise in consumption has led to higher prices for oil, leading to more investment in non-oil sources of energy. Reference may be made to conflicts that have their origin in the securing of access to oil supplies. Comments may refer to variations in the rate of increase with NICs having a faster increase in demand which causes tensions. Some impacts may arise through the transport of oil and pollution incidents that are a consequence – be careful to credit only where they lead to geopolitical impacts.

Award [1 mark] for each valid reason, and an additional [1 mark] for its development, exemplification or further explanation.

Possible reasons could include:

• adoption of a green agenda
• energy security
• the desire to increase sustainability
• the declining availability and/or rising costs of fossil fuels
• the need to avoid global warming
• meeting pledges, for example, Kyoto-Copenhagen
• an increased investment in renewable energy technologies
• technological breakthroughs that have reduced the costs of renewable energy infrastructure
• alternative to nuclear since Fukushima.