OPEC: The Organization of the Petroleum Exporting Countries
Table of Contents
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Overview
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- Introduction to OPEC
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- History of OPEC
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- Member countries of OPEC
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- Oil production and reserves
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- Oil prices
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- OPEC and the global economy
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- OPEC and the environment
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- Criticism of OPEC
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- See also
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- References
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References
Overview
OPEC is an intergovernmental organization of 15 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria. As of September 2018, the then 14 members of the organization were Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela; Indonesia is a former member.
OPEC’s objective is “to coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
- Introduction to OPEC
Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 13 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria. As of September 2018, the 13 member countries accounted for an estimated 44 percent of global oil production and 81.5 percent of the world’s “proven” crude oil reserves, giving OPEC a major influence on global oil prices that were previously determined by the Seven Sisters oil companies.
OPEC had its origins in the 1950s, with the discovery and exploitation of oil reserves in the Middle East by Western oil companies. The oil-exporting countries of the Middle East were reluctant to depend on Western oil companies for their income, and so they formed OPEC as a counterbalance. The stated aim of OPEC is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.”
OPEC nations met for the first time in September 1960 in Baghdad, and they have since held numerous meetings, the most recent in Vienna in December 2017. The organization has seen a number of changes in its membership over the years, as countries have joined and left, and its size has fluctuated from 10 to 13 members. The current members are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
- History of OPEC
OPEC is an intergovernmental organization of 15 nations founded in 1960 in Baghdad, Iraq. Its mission is to “coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on their capital for those investing in the petroleum industry.”
OPEC was created at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five founding nations were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007).
OPEC has faced criticism for its role in the 1973 oil crisis and the 1979 energy crisis. In 2008, the organization faced further criticism when oil prices reached record highs, with some accusing OPEC of artificially driving up prices.
- Member countries of OPEC
The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organization of 14 nations, founded on September 14, 1960 in Baghdad, Iraq. As of September 2018, the 14 member countries are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. These countries control substantial portions of the world’s reserves of crude oil and produce about 44% of the world’s daily oil production.
OPEC’s objective is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
- Oil production and reserves
OPEC is an intergovernmental organization of 15 nations, founded in 1960 in Baghdad by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and headquartered since 1965 in Vienna, Austria. As of September 2018, the 14 other members are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, the Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela; Indonesia was a founding member, but later suspended its membership.
OPEC had its origins in the late 1950s following the discovery of large oil reserves in the Middle East. The first five members were Iraq, Kuwait, Iran, Saudi Arabia, and Venezuela. Ecuador and Indonesia later joined, but both subsequently suspended their membership.
The primary objective of OPEC is to “coordinate and unify the petroleum policies” of its member countries. It also seeks to “ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers, and a fair return on capital for those investing in the petroleum industry.”
As of 2018, OPEC’s production was estimated at 32.7 million barrels per day, about 40% of the world’s total crude oil production. OPEC has reserves of 79.4 billion barrels, about 64% of the world’s total proven oil reserves.
The organization is headquartered in Vienna, Austria. Its members are Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, the Islamic Republic of Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
- Oil prices
The Organization of Petroleum Exporting Countries (OPEC) is a group consisting of 14 of the world’s major oil-exporting countries. Its members are Algeria, Angola, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC’s headquarters is in Vienna, Austria.
The organization was founded in Baghdad, Iraq, in September 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Its original purpose was to unify and coordinate the petroleum policies of its member countries. OPEC has since expanded its role and now also focuses on the stabilization of oil markets, the promotion of efficient and economic utilization of petroleum resources, and the provision of technical and economic assistance to less-developed countries.
OPEC’s most important decision is the setting of production quotas for its member countries. These quotas are designed to keep the price of oil within a specified range by influencing the level of supply in the global market. OPEC’s production quotas are based on the organization’s assessment of global oil demand and the need to maintain a certain level of spare capacity.
In recent years, OPEC has come under pressure from some of its member countries to increase production in order to bring down the high price of oil. However, OPEC has resisted these calls, arguing that the high price of oil is necessary to encourage investment in the long-term development of the organization’s members’ oil resources.
As a result of its production decisions, OPEC has a significant influence on oil prices. When OPEC decides to increase or decrease production, this usually leads to a corresponding change in the price of oil. OPEC’s decisions are therefore closely watched by the global oil market and can have a significant impact on the world economy.
- OPEC and the global economy
OPEC is an intergovernmental organization of 13 nations, founded in 1960 in Baghdad, Iraq, by the first five members (Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), and today consisting of Algeria, Angola, Ecuador, Gabon, the Islamic Republic of Iran, Iraq, Kuwait, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. As of 2019, the 13 member countries accounted for an estimated 44 percent of global oil production and 82 percent of the world’s “proven” oil reserves, giving OPEC a major influence on global oil prices that were previously determined by the so-called “Seven Sisters” cartel of multinational oil companies.
OPEC has had a profound impact on the global economy, both in terms of its own activities and its influence on the prices of oil, a major global commodity. The organization has been criticized for causing high oil prices and economic hardship in industrialized nations, while benefiting oil-producing nations. However, it has also been praised for helping to stabilize the global economy and preventing major oil shocks.
- OPEC and the environment
OPEC and the environment
The Organization of the Petroleum Exporting Countries (OPEC) is a group of oil-producing nations that have joined together to coordinate their activities and protect their interests. The OPEC nations are Algeria, Angola, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
OPEC nations are committed to sustainable development and the protection of the environment. In order to achieve these goals, OPEC has adopted a number of policies and initiatives, including:
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Establishing the OPEC Fund for International Development (OFID) to help finance sustainable development projects in OPEC member countries and other developing nations;
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Cooperating with the United Nations and other international organizations on environmental issues;
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Supporting research and development of cleaner and more efficient energy technologies;
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Investing in renewable energy sources;
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Working to improve energy efficiency;
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Promoting the conservation of natural resources;
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Addressing the impact of climate change.
OPEC’s efforts to protect the environment are an important part of the organization’s overall commitment to sustainable development. By working to reduce emissions, promote energy efficiency, and invest in renewable energy, OPEC is playing a key role in the fight against climate change.
- Criticism of OPEC
OPEC has been criticized for a variety of reasons. Some say that it is a cartel that unfairly raises prices and restricts supply. Others say that it is ineffective and does not do enough to stabilize prices. Some countries, like the United States, have criticized OPEC for not doing enough to prevent oil price spikes.
- See also
OPEC is a cartel of oil-producing nations that was founded in Baghdad, Iraq, in 1960. Its members are Algeria, Angola, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
OPEC’s stated goal is to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry.”
The organization is headquartered in Vienna, Austria.
In 2015, OPEC produced about 40% of the world’s crude oil.
- References
OPEC is a global organization that produces and sells oil. The organization is made up of 12 member countries: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.
OPEC was founded in 1960 by five oil-producing countries: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization was created in order to increase the price of oil and to work together to produce and sell oil.
OPEC has been successful in increasing the price of oil. In 1973, the organization imposed an oil embargo on the United States and other countries that supported Israel in the Yom Kippur War. The embargo caused the price of oil to quadruple.
In recent years, OPEC has been struggling to maintain high oil prices due to increased production from countries outside of the organization, such as the United States. In 2016, OPEC agreed to cut production in order to increase prices.
The organization has been criticized for its high prices and for its production cuts that have caused shortages.
References
OPEC. (2018). About OPEC: What is OPEC?. OPEC. Retrieved 29 November 2018, from OPEC : Member Countries
OPEC. (2018). OPEC’s History. OPEC. Retrieved 29 November 2018, from OPEC : Brief History
OPEC. (2018). OPEC Basket. OPEC. Retrieved 29 November 2018, from https://www.opec.org/opec_web/en/about_us/22.htm
OPEC. (2018). OPEC Secretariat. OPEC. Retrieved 29 November 2018, from https://www.opec.org/opec_web/en/about_us/21.htm
OPEC. (2018). OPEC Membership. OPEC. Retrieved 29 November 2018, from https://www.opec.org/opec_web/en/about_us/20.htm
