The challenges of OPEC and the creation of incentives for technological innovationOPEC is an unstable cartel representing the same interests as main players in oil-exporting countries. It had its day when it managed to raise the price of oil, thus allowing member countries to obtain a significant amount of bounty collected on behalf of their sovereigns for the cartel and for their loyalty. The essay summarizes a cause and effect that focuses on 2 sets of connections; the first is focused on the lack of effectiveness of OPEC or formal mechanism to circumscribe conflicts with its members, which leads to consequences that affect the oil-dependent industry such as the transport industry, or airlines , making them very vulnerable. The second series focuses on the results of OPEC's mismanagement and its concerns over its limited oil reserves, which on the other hand triggers a new market for new developments in the discovery of alternatives to oil . This looks like a “clumsy cartel”. Through a clumsy cartel, he sometimes manages to have the impact he wishes to have and sometimes not. He had over a decade of good results effectively increasing the price of oil in the 1970s through the early 1980s and now he has had good results again in the last decade and an increase in price above the competitive level and pressure on supply to its most profitable level are the consequences. the goal of successful existing cartels so that they can all enjoy monopolistic profits. Economic theory tells us that they will not charge the "highest price", but the "most profitable price", given each member's supply, while taking into account the supply of the rest of the world . Unfortunately, maintaining a cartel is a difficult task. Amidst paper consumption, the market becomes free to enter. As long as the change is based on technological progress that doubles its capacity every six months, which means it grows to infinity, and as long as it does not depend on limited natural resources, the technological market of the future will be a competitive market. Works Cited Ydstie, John. “Fear of oil spurs FedEx toward energy efficiency.” NPR. April 2, 2012. NPR. February 25, 2014. Spiro, David E. The hidden hand of American hegemony: recycling of petrodollars and international markets. Ithaca, NY: Cornell UP, 1999. “OPEC to Consider Iraqi Oil Production Quota, for First Time Since Gulf War.” »DeseretNews.com. March 29, 2000. February 29. 2014 .