Prepared by :

Gage Glassnor

OPEC Oil Production and

Inflation Concerns

PROPOSAL
 Executive
Summary
Inflation is on the rise throughout the world as we
come out of the pandemic. With the oil Industry
being one the companies hardest hit In the years
following 2020. Now with the on-going war between
Russia and Ukraine, as well as rapidly Increasing
Inflation the breakeven point on a barrel of oil has
Increased. Which has decreased the revenue oil
companies have been taking In per barrel that Is sold
for gas and many other oil byproducts. Our best
option to ensure stability would to be work with
governments of first world countries. By creating a
plan to ensure profits for the future and to create a
stable price In oil production.
 Justification for
Proposal
With consumers being hurt at the pump world
leaders are looking for solutions to reduce gas
prices. Which has lead to a great opportunity
discussed by the President of the United States, In
which he would be In agreeance with. If the price of a
barrel Is lowered the President mentioned
purchasing oil from OPEC to replenish the Federal
Oil Reserve, which Is nearly halfway to being empty
meaning, If we were to do this we are ensuring a
potential sale of over 300 million barrels of oil.
Which will bring In 21 billion dollars of sales going
towards the United States oil reserve.
IMPLEMENTATION:
Communicate with participating
parties and find a common ground
to carry out the plan to reduce prices
and drive consumer spending.

Establish a timeline and a legal

binding contract to ensure that all
parties follow through with their
duties.

With all terms In agreement, begin

to Implement and cut costs to turn a
profit while also reduce the price of
an oil barrel. However, limitations
Include the possibility that the costs
can be cut down enough to ensure
that a profit Is still being made.
Profits may be lower for the time
being, but In the long run there will
be a long term client(s).
 Next Steps:
Find clients(countries) that need their oil
reserves replenished or filled. Thus creating a
source of revenue beyond the normal creation of
gas and other oil byproducts.

Negotiate terms of agreement and common

grounds that are required for this
sale/partnership to occur.

Sell and distribute oil to the countries who agree

to do business. It will also reduce the threat of
Interference and restrictions by other countries
for the oil prices per barrel.
 Conclusion: :

Reducing the price of oil barrels will create new agreements

and sources of revenue.
While profits may be lower for the time being, It gives an
opportunity to make partnerships and please consumers.
Risks of government Intervention will be greatly reduced If
we lower barrel prices. Otherwise If we refuse then the
control that OPEC has on oil prices and the entire Industry
can be greatly reduced.

References:
Breakeven crude oil production costs around the world. Market News & Forecasts,
Charts, Broker Reviews. (n.d.). Retrieved October 27, 2022, from
https://www.fxempire.com/education/article/breakeven-crude-oil-production-costs-
around-the-world-646083

Home. OPEC. (n.d.). Retrieved October 27, 2022, from

https://www.opec.org/opec_web/en/index.htm

Malik, H. (2021, December 3). OPEC+ unchanged with oil price near Fiscal Breakeven.
Tellimer. Retrieved October 27, 2022, from https://tellimer.com/article/opec-
unchanged-with-oil-price-near-fiscal-bre

Q.ai - Powering a Personal Wealth Movement. (2022, October 21). Oil prices 2022:
Here's what investors need to know. Forbes. Retrieved October 27, 2022, from
https://www.forbes.com/sites/qai/2022/10/20/oil-prices-2022-heres-what-investors-
need-to-know/?sh=36858b3b73e0