OPEC

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Organization of the Petroleum Exporting Countries
Flag of Organization of the Petroleum Exporting Countries
Flag
Location of Organization of the Petroleum Exporting Countries
Headquarters Vienna, Austria
Official language English[1]
Type Cartel
Membership
Leaders
• President
Diezani Alison-Madueke
Abdallah el-Badri
Establishment Baghdad, Iraq
• Statute
10–14 September 1960
• in effect
January 1961
Area
• Total
11,854,977 km2 (4,577,232 sq mi)
Population
• Estimate
372,368,429
• Density
31.16/km2 (80.7/sq mi)
Currency Indexed as USD -per-barrel
Website
www.opec.org

OPEC, the Organization of the Petroleum Exporting Countries is an international organization. Since 1965, the headquarters of OPEC is in Vienna, Austria. OPEC was established in Baghdad, Iraq on 10–14 September 1960.[2]

Its work is to "coordinate and unify the petroleum policies" of its members. Also 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".[3][4][5][6]

According to the United States Department of Energy Energy Information Administration (EIA), OPEC crude oil production is an important factor affecting global oil prices. OPEC sets production targets for its member nations and generally, when OPEC production targets are reduced, oil prices increase.[7] Projections of changes in Saudi production result in changes in the price of crude oil.[7]

OPEC was formed in 1960 when the international oil market was largely dominated by multinational companies known as the 'seven sisters'.[8]:503 The formation of OPEC was a turning point in state control over natural resources.[8]:505 In the 1960s OPEC made sure that oil companies could not unilaterally cut prices.[8]:505 In December 2014, OPEC and the oil men were named in the top 10 most influential people in the shipping industry by Lloyds.[9]

Members[change | change source]

14 countries are members of OPEC.[10] The names of these countries are:

  1. Algeria
  2. Angola
  3. Ecuador
  4. Equatorial Guinea
  5. Gabon
  6. Iran
  7. Iraq
  8. Kuwait
  9. Libya
  10. Nigeria
  11. Qatar
  12. Saudi Arabia
  13. The United Arab Emirates
  14. Venezuela.

Indonesia was a former member.

Aims[change | change source]

Member countries of the OPEC came together to form this international organization with several aims. Some of the aims are:

  • To protect the interest of the member countries.
  • To make sure that the price of petroleum products do not change much.
  • To make certain a regular supply of petroleum oil to other countries.
  • To make sure that member countries get the right amount of money from sale of oil products.
  • To decide policies to follow relating to production and sale of petroleum oil.

However, OPEC has not always been able to achieve all these aims.

Related pages[change | change source]

References[change | change source]

  1. "OPEC Statute" (PDF). Organization of the Petroleum Exporting Countries. 2008. p. 8. Retrieved 8 June 2011. English shall be the official language of the Organization. 
  2. "2014 World Oil Outlook (WOO)" (PDF), OPEC, Vienna, p. 396, 2014, ISBN 978-3-9502722-8-4 
  3. "About", OPEC, Vienna, nd, retrieved 12 December 2014 
  4. "Statute" (PDF), OPEC, 2012, retrieved 12 December 2014 
  5. "Opec and Oil Prices: Leaky Barrels". The Economist. Retrieved 12 May 2014. 
  6. "Our Mission". OPEC. Retrieved 16 February 2013. 
  7. 7.0 7.1 "Energy & Financial Markets: what drives crude oil prices?", EIA, 2014, retrieved 12 December 2014 
  8. 8.0 8.1 8.2 Yergin, Daniel 1991. The Prize: the epic quest for oil, money, and power. New York: Simon & Schuster.
  9. http://www.lloydslist.com/ll/news/top100/article453573.ece
  10. http://www.opec.org/opec_web/en/about_us/25.htm

Other websites[change | change source]