OPEC : Brief History Brief History Home About Us Brief History Brief History The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) – suspended its membership in January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership in December 1992, but reactivated it in October 2007; Angola (2007); and Gabon (1975) - terminated its membership in January 1995 but rejoined in July 2016. OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence.

This was moved to Vienna, Austria, on September 1, 1965. OPEC's objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry. The 1960s OPEC’s formation by five oil-producing developing countries in Baghdad in September 1960 occurred at a time of transition in the international economic and political landscape, with extensive decolonisation and the birth of many new independent states in the developing world. The international oil market was dominated by the “Seven Sisters” multinational companies and was largely separate from that of the former Soviet Union (FSU) and other centrally planned economies (CPEs). OPEC developed its collective vision, set up its objectives and established its Secretariat, first in Geneva and then, in 1965, in Vienna. It adopted a ‘Declaratory Statement of Petroleum Policy in Member Countries’ in 1968, which emphasised the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development.

Membership grew to ten by 1969. The 1970s OPEC rose to international prominence during this decade, as its Member Countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets. On two occasions, oil prices rose steeply in a volatile market, triggered by the Arab oil embargo in 1973 and the outbreak of the Iranian Revolution in 1979. OPEC broadened its mandate with the first Summit of Heads of State and Government in Algiers in 1975, which addressed the plight of the poorer nations and called for a new era of cooperation in international relations, in the interests of world economic development and stability. This led to the establishment of the OPEC Fund for International Development in 1976. Member Countries embarked on ambitious socio-economic development schemes. Membership grew to 13 by 1975. The 1980s After reaching record levels early in the decade, prices began to weaken, before crashing in 1986, responding to a big oil glut and consumer shift away from this hydrocarbon.

OPEC’s share of the smaller oil market fell heavily and its total petroleum revenue dropped below a third of earlier peaks, causing severe economic hardship for many Member Countries. Prices rallied in the final part of the decade, but to around half the levels of the early part, and OPEC’s share of newly growing world output began to recover. This was supported by OPEC introducing a group production ceiling divided among Member Countries and a Reference Basket for pricing, as well as significant progress with OPEC/non-OPEC dialogue and cooperation, seen as essential for market stability and reasonable prices. Environmental issues emerged on the international energy agenda. The 1990s Prices moved less dramatically than in the 1970s and 1980s, and timely OPEC action reduced the market impact of Middle East hostilities in 1990–91. But excessive volatility and general price weakness dominated the decade, and the South-East Asian economic downturn and mild Northern Hemisphere winter of 1998–99 saw prices back at 1986 levels.

However, a solid recovery followed in a more integrated oil market, which was adjusting to the post-Soviet world, greater regionalism, globalisation, the communications revolution and other high-tech trends. Breakthroughs in producer-consumer dialogue matched continued advances in OPEC/non-OPEC relations. As the United Nations-sponsored climate change negotiations gathered momentum, after the Earth Summit of 1992, OPEC sought fairness, balance and realism in the treatment of oil supply. One country left OPEC, while another suspended its Membership. The 2000s An innovative OPEC oil price band mechanism helped strengthen and stabilise crude prices in the early years of the decade. But a combination of market forces, speculation and other factors transformed the situation in 2004, pushing up prices and increasing volatility in a well-supplied crude market. Oil was used increasingly as an asset class. Prices soared to record levels in mid-2008, before collapsing in the emerging global financial turmoil and economic recession. OPEC became prominent in supporting the oil sector, as part of global efforts to address the economic crisis.

OPEC’s second and third summits in Caracas and Riyadh in 2000 and 2007 established stable energy markets, sustainable development and the environment as three guiding themes, and it adopted a comprehensive long-term strategy in 2005. One country joined OPEC, another reactivated its Membership and a third suspended it. 2010 until now The global economy represented the main risk to the oil market early in the decade, as global macroeconomic uncertainties and heightened risks surrounding the international financial system weighed on economies. Escalating social unrest in many parts of the world affected both supply and demand throughout the first half of the decade, although the market remained relatively balanced. Prices were stable between 2011 and mid-2014, before a combination of speculation and oversupply caused them to fall in 2014. Trade patterns continued to shift, with demand growing further in Asian countries and generally shrinking in the OECD. The world’s focus on multilateral environmental matters began to sharpen, with expectations for a new UN-led climate change agreement. OPEC continued to seek stability in the market, and looked to further enhance its dialogue and cooperation with consumers, and non-OPEC producers.

1st OPEC Conference, 10-14 September 1960, Baghdad, Iraq OPEC Board of Governors, 3 September 1962, Geneva, Switzerland 7th OPEC Conference, 23-28 November 1964, Jakarta, Indonesia 32nd (Extraordinary) OPEC Conference, 16–17 March 1973, Vienna, Austria 73rd (Extraordinary) OPEC Conference, 28–30 January 1985, Geneva, Switzerland Third OPEC Summit, 17-18 November 2007, Riyadh, Saudi Arabia Delegates and guests at OPEC's new Headquarters, 17 March 2010, Vienna, Austria 6th OPEC International Seminar, 3-4 June 2015, Hofburg Palace, Vienna, Austria 167th OPEC Conference, 5 June 2015, Vienna, Austria Organization Of Petroleum Exporting Countries (OPEC) - WorldAtlas.com Organization Of Petroleum Exporting Countries (OPEC) The 13 member countries of OPEC control almost three-quarters of the world's proven oil reserves

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Petrochemical facilities and oil wells dominate the landscape of the Arabian Peninsula and the economies of the countries upon it. 5. Overview and Member Countries The birth of the Organization of Petroleum Exporting Countries (OPEC) was a response by the founding member countries to prevent the multi-national oil companies from manipulating crude prices. The intergovernmental organization was formed in 1960 by five major oil producers, namely Iran and Venezuela . OPEC’s stated purpose is “to coordinate and unify the petroleum policies of its member countries and ensure the stabilization of oil markets.” As of June of 2016, its other members are the United Arab Emirates , OPEC’s headquarters moved to Vienna in 1965 (pictured above). Two-thirds of OPEC’s oil reserves are in the Middle Eastern countries around the Persian Gulf being the largest producer and exporter of all, is the de facto leader of OPEC. 4. Organizational History In 1949, as the world was recovering from World War II, Iran to improve coordination among the major petroleum producing countries. In the Middle East , some of the largest oil fields were about to start production.

The world market was dominated by seven multinational companies, five of which were headquartered in the United States , the largest producer and consumer of oil. These companies controlled oil operation and prices of the exporting countries and leveraged enormous political influence. When the companies unilaterally reduced their prices for Middle Eastern and Venezuelan crude oil in 1959, the oil minister of Venezuela , Juan Pablo Perez Alfonso, and his Saudi Arabian counterpart, Abdullah Tariki, called for an “Oil Consultation Commission” of exporting countries, which would first approve price changes. After the companies again reduced Middle Eastern Oil prices in the following year, Perez Alfonso and Tariki organized the Baghdad Conference in September of 1960 to increase crude oil prices of their countries and to respond to unilateral actions of the multinationals. OPEC was the direct result of the conference. 3. Domination of the Global Fuel Market The creation of OPEC saw the beginning of national sovereignty over natural resources. Since then, OPEC has come to play a crucial role in international relations. In the 1970s, when OPEC member countries restricted oil production, prices soared with long interruptions in supply, with long-lasting effects for the global economy.

In 1973, the Middle Eastern members of OPEC, along with Egypt and Syria , declared an oil embargo the western countries as a result of the Yom Kippur War. Prices rose dramatically and disrupted the economies of the U.S. and U.K. , who had to implement programs of petroleum rationing. Even after the embargo ended the following year after intense diplomatic efforts, prices continued to rise . The world went through a recession, signaling an end to the Post-World War II boom. In December of 2014, Lloyd’s ranked “OPEC and the oil men” third on the list of “the top 100 most influential people in the shipping industry”. 2. Challenges and Criticisms Beginning in earnest in the 1980s, OPEC began setting production targets for its member countries. Reduced targets and production have the general tendency to increase prices. OPEC countries often have difficulties in agreeing on policy decisions because individual nations have their own compulsions and priorities. The countries also differ in production and export capacities, costs, reserves, population and economic and political exigencies.

Poorer member countries usually push for lowering exports to raise prices and reserves, which go against Saudi Arabia ’s strategy to ensure a steady flow of oil to all countries for global economic expansion. At times, OPEC members have allegedly acted as a noncompetitive cartel because of the organization’s decisions about oil production and price levels. In fact, economists have gone to the extent of describing OPEC as a textbook example of a cartel that manipulates prices by avoiding and reducing competition. Anti-OPEC sentiment has been so high among U.S. lawmakers that they sought to pass laws to limit the sovereign immunity of OPEC members and bring them under the sphere of Federal laws regulating competition. 1. Prospects for the Future Industrialized countries began to take efforts in the 1980s to reduce their dependence on OPEC oil and the consumption of fossil fuels in general. Commercial exploration revealed major oilfields in Alaska OPEC | multinational organization | Britannica.com multinational organization Alternative Title: Organization of the Petroleum Exporting Countries Related Topics OPEC, in full Organization of the Petroleum Exporting Countries, multinational organization that was established to coordinate the petroleum policies of its members and to provide member states with technical and economic aid. OPEC headquarters in Vienna.

Barbara Gindl—AFP/Getty Images Membership and organization OPEC was established at a conference held in Baghdad Sept. 10–14, 1960, and was formally constituted in January 1961 by five countries: Saudi Arabia , Iran , Iraq , Kuwait , and Venezuela . Members admitted afterward include Qatar (1961), Indonesia and Libya (1962), Abū Ẓabī (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), and Angola (2007). The United Arab Emirates —which includes Abū Ẓabī (the largest of the emirates), Dubayy, ʿAjmān, Al-Shāriqah, Umm al-Qaywayn , Raʾs al-Khaymah , and Al-Fujayrah—assumed Abū Ẓabī’s membership in the 1970s. Gabon , which had joined in 1975, withdrew in January 1995, but it had relatively insignificant oil reserves.

Ecuador suspended its membership from OPEC from December 1992 until October 2007, while Indonesia suspended its membership beginning in January 2009. OPEC’s headquarters, first located in Geneva , was moved to Vienna in 1965. OPEC members coordinate policies on oil prices, production, and related matters at semiannual and special meetings of the OPEC Conference. The Board of Governors, which is responsible for managing the organization, convening the Conference, and drawing up the annual budget, contains representatives appointed by each member country; its chair is elected to a one-year term by the Conference. OPEC also possesses a Secretariat, headed by a secretary-general appointed by the Conference for a three-year term; the Secretariat includes research and energy-studies divisions. OPEC members collectively own about two-thirds of the world’s proven petroleum reserves and account for two-fifths of world oil production. Members differ in a variety of ways, including the size of oil reserves, geography, religion, and economic and political interests.

Four members—Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates—have very large per capita oil reserves; they also are relatively strong financially and thus have considerable flexibility in adjusting their production. Saudi Arabia, which has the largest reserves and a relatively small (but fast-growing) population, has traditionally played a dominant role in determining overall production and prices. Similar Topics North Atlantic Treaty Organization (NATO) Because OPEC has been beset by numerous conflicts throughout its history, some experts have concluded that it is not a cartel —or at least not an effective one—and that it has little, if any, influence over the amount of oil produced or its price. Other experts believe that OPEC is an effective cartel, though it has not been equally effective at all times. The debate largely centres on semantics and the definition of what constitutes a cartel. Those who argue that OPEC is not a cartel emphasize the sovereignty of each member country, the inherent problems of coordinating price and production policies, and the tendency of countries to renege on prior agreements at ministerial meetings.

Those who claim that OPEC is a cartel argue that production costs in the Persian Gulf are generally less than 10 percent of the price charged and that prices would decline toward those costs in the absence of coordination by OPEC. The influence of individual OPEC members on the organization and on the oil market usually depends on their levels of reserves and production. Saudi Arabia, which controls about one-third of OPEC’s total oil reserves, plays a leading role in the organization. Other important members are Iran, Iraq, Kuwait, and the United Arab Emirates, whose combined reserves are significantly greater than those of Saudi Arabia. Kuwait, which has a very small population, has shown a willingness to cut production relative to the size of its reserves, whereas Iran and Iraq, both with large and growing populations, have generally produced at high levels relative to reserves. Revolutions and wars have impaired the ability of some OPEC members to maintain high levels of production.

History Geography of Iran When OPEC was formed in 1960, its main goal was to prevent its concessionaires—the world’s largest oil producers, refiners, and marketers—from lowering the price of oil, which they had always specified, or “posted.” OPEC members sought to gain greater control over oil prices by coordinating their production and export policies, though each member retained ultimate control over its own policy. OPEC managed to prevent price reductions during the 1960s, but its success encouraged increases in production, resulting in a gradual decline in nominal prices (not adjusted for inflation) from $1.93 per barrel in 1955 to $1.30 per barrel in 1970. During the 1970s the primary goal of OPEC members was to secure complete sovereignty over their petroleum resources. Accordingly, several OPEC members nationalized their oil reserves and altered their contracts with major oil companies. Britannica Stories Ringling Bros. Folds Its Tent In October 1973, OPEC raised oil prices by 70 percent.

In December, two months after the Yom Kippur War (see Arab-Israeli wars ), prices were raised by an additional 130 percent, and the organization’s Arab members, which had formed OAPEC ( Organization of Arab Petroleum Exporting Countries ) in 1968, curtailed production and placed an embargo on oil shipments to the United States and the Netherlands, the main supporters of Israel during the war. The result throughout the West was severe oil shortages and spiraling inflation. As OPEC continued to raise prices through the rest of the decade (prices increased 10-fold from 1973 to 1980), its political and economic power grew. Flush with petrodollars, many OPEC members began large-scale domestic economic and social development programs and invested heavily overseas, particularly in the United States and Europe. OPEC also established an international fund to aid developing countries. Although oil-importing countries reacted slowly to the price increases, eventually they reduced their overall energy consumption , found other sources of oil (e.g., in Norway, the United Kingdom , and Mexico), and developed alternative sources of energy, such as coal , natural gas , and nuclear power .

In response, OPEC members—particularly Saudi Arabia and Kuwait—reduced their production levels in the early 1980s in what proved to be a futile effort to defend their posted prices. Production and prices continued to fall in the 1980s. Although the brunt of the production cuts were borne by Saudi Arabia, whose oil revenues shrank by some four-fifths by 1986, the revenues of all producers, including non-OPEC countries, fell by some two-thirds in the same period as the price of oil dropped to less than $10 per barrel. The decline in revenues and the ruinous Iran-Iraq War (1980–88), which pitted two OPEC members against each other, undermined the unity of the organization and precipitated a major policy shift by Saudi Arabia, which decided that it no longer would defend the price of oil but would defend its market share instead. Following Saudi Arabia’s lead, other OPEC members soon decided to maintain production quotas.

Saudi Arabia’s influence within OPEC also was evident during the Persian Gulf War (1990–91)—which resulted from the invasion of one OPEC member (Kuwait) by another (Iraq)—when the kingdom agreed to increase production to stabilize prices and minimize any disruption in the international oil market. Connect with Britannica Facebook Twitter YouTube Instagram Pinterest During the 1990s OPEC continued to emphasize production quotas. Oil prices, which collapsed at the end of the decade, began to increase again in the early 21st century, owing to greater unity among OPEC members and better cooperation with nonmembers (such as Mexico, Norway, Oman, and Russia), increased tensions in the Middle East , and a political crisis in Venezuela. As the 21st century began, international efforts to reduce the burning of fossil fuels (which has contributed significantly to global warming; see greenhouse effect ) made it likely that the world demand for oil would inevitably decline. In response, OPEC attempted to develop a coherent environmental policy. The power of OPEC has waxed and waned since its creation in 1960 and is likely to continue to do so for as long as oil remains a viable energy resource.

Organization of the Petroleum Exporting Countries (OPEC) | Explainz Organization of the Petroleum Exporting Countries (OPEC) 0 Facebook Twitter Subscribe Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental establishment formed by Iraq, Iran, Saudi Arabia, Kuwait and Venezuela (founder members) at the September 10-14, 1960 Baghdad Conference. OPEC was built to coordinate and have identical petroleum policies among participating nations. It helps secure stable and fair prices for producers; ensure regular and economic petroleum supply to consumers and good returns for industry investors. OPEC headquarters in Vienna, Austria. Image credit: Flickr Contrary to popular belief, OPEC doesn’t control the global oil industry. But since close to 55 percent of internationally traded oil originates from OPEC members, the cartel has a major influence on the global oil sector. Though viewed as a threat to Western oil-producing nations, OPEC strives to promote harmony and stability within the oil industry. Brief History For the first five years, OPEC’s headquarters was in Geneva, Switzerland. Later, it was moved to Vienna, Austria (September 1, 1965). Iraq and Saudi Arabia are among the major OPEC producers.

Ecuador and Gabon are the group’s smallest members, in terms of production numbers. By the 1970s, OPEC gained international prominence and had a major say in global market crude oil pricing. During the 1980s, there was a temporary decline in OPEC influence as Western countries started exploiting their native oil resources, looking for alternative energy channels and began energy-reduction initiatives. However, these efforts failed and with the never-ending oil appetite of the West, OPEC rose to prominence once again thereafter. OPEC Conference OPEC meeting. Image credit: Flickr The OPEC Conference is an authoritative body overseeing OPEC operations. It comprises oil and energy ministers of the member countries, who meet twice (March and September) or more (if needed) every year to determine the group’s general policies and production plans. The Conference also looks into membership applications, approves governors from every member country who make up the board. Membership, Members, and Fees The cartel has three types of membership: founder, full and associate. Founder members are nations that were part of the group’s first conference. A full member is any country whose application has been accepted by the group. Founder members are also full members. Associates do not enjoy full membership.

Besides the original members, the other countries that later joined the cartel are as following (with year of joining). Qatar (1961) Angola (2007) Gabon (1975) As an OPEC member, countries have access to insightful information on other countries’ activities. The membership also helps countries negotiate contracts much effectively and efficiently with private oil firms. Every OPEC member has to pay a certain fee annually to stay as the cartel’s member. This fee is the same for all, regardless of the varying oil production capabilities of member nations. OPEC is open to new nations that are major oil exporters and share the organization’s ideals. The new member must have the votes of three-fourths of all active OPEC members, including the support of all founder members. Oil Production OPEC members account for close to 40 percent of global oil production and two-thirds of global oil reserves. The production capacity of each member nation varies. OPEC’s daily oil production (as a group) also changes with time, based on market scenarios and other factors. Organization for Economic Co-Operation and Development (OECD) is the next biggest oil-producing group.

It comprises United States, Canada, Mexico, Austria, Denmark, Belgium, Germany, France, Greece, Iceland, Italy, Ireland, Luxembourg, Norway, Netherlands, Portugal, Sweden, Spain, Switzerland, United Kingdom, Turkey, Japan, Australia, Finland, New Zealand, Czech Republic, South Korea, Poland, Hungary, and Slovakia. OPEC closely monitors oil production of non-OPEC countries to adjust production and thereby maintain required barrel price. Member Exits and Re-Entries Ecuador was the first country to leave OPEC in 1992. According to Magdalena Barreiro, the former Ecuadoran economy minister, the South American country had to quit due to OPEC’s yearly $2 million member fee and the organization denying to increase Ecuador’s production quota. Both the conditions were hurting the country’s already struggling economy. Ecuador however wanted to continue as an associate member of OPEC, so that its membership fees could reduce and oil production exceed the OPEC-set limit. In 2007, Ecuador rejoined the cartel. Gabon was next to quit OPEC. The country moved out in 1995 citing the group not paying heed to its request to reduce the yearly fee.

Indonesia pulled out of OPEC during September 2008 as its oil consumption was exceeding its production. The country was also not happy with the rising oil prices. It was believed the country was disappointed with its lack of influence on the organization, as a result. After 7 years of absence, Indonesia reactivated its OPEC membership. Related Explanations: What is OPEC? | Questions4Thoughts Questions4Thoughts Flag of OPEC OPEC stands for the Organization of the Petroleum Exporting Countries. The OPEC is a cartel of 13 countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Indonesia, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. The organization has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971).

Ecuador and Gabon were members of OPEC, but Ecuador withdrew on December 31, 1992 because they were unwilling or unable to pay a $2 million membership fee and felt that they needed to produce more oil than they were allowed to under the OPEC quota. Similar concerns prompted Gabon to follow suit in January 1995. Angola joined on the first day of 2007. The United States was a member during its formal occupation of Iraq via the Coalition Provisional Authority. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPEC’s Secretary General, recently asked Sudan to join. Iraq remains a member of OPEC, though Iraqi production has not been a part of any OPEC quota agreements since March 1998. Fifteen years after leaving, Ecuador rejoined OPEC in November 2007 after Rafael Correa became president in January 2007. Correa has made OPEC membership a key part of oil policy since taking office.

In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota. One of the principal goals of OPEC is the determination of the best means for safeguarding the Organization’s interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. OPEC’s influence on the market has been negatively criticized. Several members of OPEC alarmed the world and triggered high inflation across both the developing and developed world when they used oil embargoes in the 1973 oil crisis. OPEC’s ability to control the price of oil has diminished somewhat since then, due to the subsequent discovery and development of large oil reserves in the Gulf of Mexico and the North Sea, the opening up of Russia, and market modernization.

OPEC nations still account for two-thirds of the world’s oil reserves, and, as of March 2008, 35.6% of the world’s oil production, affording them considerable control over the global market. The next largest group of producers, the OECD (Organisation for Economic Co-operation and Development) having 30 member countries (Austira, Belgium, Canada, Denmark, France, Germany, Greece, Iceland, Republic of Ireland, Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Turkey, United Kingdom, United States, Japan, Finland, Australia, New Zealand, Mexico, Czech Republic, South Korea, Hungary, Poland and Slovakia) and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world’s total oil production. As early as 2003, concerns that OPEC members had little excess pumping capacity sparked speculation that their influence on crude oil prices would begin to slip. Like this: Opec Research Paper - 5038 Words RESHMA LALA| 115| WHAT DOES OPEC STAND FOR?

The Organization of the Petroleum Exporting Countries (OPEC) was created in 1960 to unify and protect the interests of oil-producing countries. The Organization of the Petroleum Exporting Countries (OPEC) is a group of twelve states made up of Iran, Iraq, Kuwait, Qatar, Saudi Arabia, the United Arab Emirates, Libya, Algeria, Nigeria, Angola, Venezuela and Ecuador. The organization has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its member states. OPEC allows oil-producing countries to guarantee their income by coordinating policies and prices among them. This unified front was created primarily in response to the efforts of Western oil companies to drive oil prices down. The original members of OPEC included Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. OPEC has since expanded to include seven more countries (Algeria, Angola, Indonesia, Libya, Nigeria, Qatar, and United Arab Emirates) making a total membership of 12. OPEC represents a considerable political and economical force. Two-thirds of the oil reserves in the world belong to OPEC members; likewise, OPEC members are responsible for half of the world's oil exports.

The fact that OPEC controls the availability of a substance so universally sought after by modern society renders the organization a force to be reckoned with. BRIEF HISTORY Venezuela and Iran were the first countries to move towards the establishment of OPEC in the 1960s by approaching Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations. The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Later members include Algeria, Ecuador, Gabon, Indonesia, Libya, Qatar, Nigeria, and the United Arab Emirates. In 10–14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries. OPEC was founded in Baghdad, triggered by a 1960 law instituted by American President Dwight Eisenhower that forced quotas on Venezuelan and Persian Gulf oil imports in favor of the Canadian and Mexican oil industries.

Eisenhower cited national security, land access to energy supplies, at times of war. When this led to falling prices for oil in these regions, Venezuela's president Romulo Betancourt reacted by seeking an alliance with oil producing Arab nations as a preemptive strategy to maintain the continued autonomy and profitability of Venezuela's oil resources. As a result, OPEC was founded to unify and coordinate members' petroleum policies. Original OPEC members include Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Between 1960 and 1975, the organization expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon were early members of OPEC, but Ecuador withdrew on December 31, 1992[10] because it was unwilling or unable to pay a $2 million membership fee and felt that it needed to produce more oil than it was allowed to under the OPEC quota,[11] although it rejoined in October 2007.

Similar concerns prompted Gabon to suspend membership in January 1995.[12] Angola joined on the first day of 2007. Norway and Russia have attended OPEC meetings as observers. Indicating... OPEC essay ...Exporting Countries (OPEC) is a permanent, intergovernmental organization, created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) which suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) suspended its membership from December 1992- October 2007; Angola (2007) and Gabon (1975-1994). Until... 1110 Words | 3 Pages OPEC Presentation Essay ... Overview of OPEC Is a permanent, intergovernmental Organization, created at the Baghdad Conference on September, 1960.

Founder Members: Later joined Members •Iran •Iraq •Kuwait •Saudi Arabia •Venezuela •Qatar (1961) •Indonesia (1962) – suspended membership 01/2009 •Libya (1962) •United Arab Emirates (1967) •Algeria (1969) •Nigeria (1971) •Ecuador (1973) – suspended membership 1992-2007 •Angola (2007) •Gabon (1975–1994) Objectives of Opec • OPEC's objective... 1366 Words | 17 Pages Opec Oligopoly Essay ...OPEC Oligopoly Chelsea Weber OPEC Oligopoly Organization of Petroleum Exporting Countries (OPEC) has been called many names; monopoly, oligopoly, cartel, or all of the above. Reading further will give information on to why OPEC is an oligopoly. To give you a brief background on OPEC, explain to you how OPEC acts like a cartel and of why OPEC is a successful oligopoly and cartel. Is...

1296 Words | 4 Pages Opec Power Past and Present Essay ...In this paper, I am going to discuss how the oil cartel known as OPEC (Organization of Petroleum Exporting Countries) impacted the United States economy in the 1970's, how the effects of this are still felt today, and how their power should continue to influence our thinking where foreign policy and energy policy are concerned. First I will explain what OPEC is, its history and how this concerns every citizen in the United States. Then I will discuss how... 1722 Words | 6 Pages Opec Oil Embargo s Effects on the Macro Economy Essay ...Drew Haley Overview The Organization of the Petroleum Exporting Countries (OPEC) was formed in 1960 to unify the policies of oil exporting countries in the Middle East (About Us). During the 1973 Arab-Israeli War, the United States and Netherlands helped Israel in this war with supplies. This angered OPEC countries and acted as a catalyst for the 1973 oil embargo (Reid). Many countries in OPEC and most notably Saudi Arabia, wanted Israel to...

2031 Words | 6 Pages Essay about Opec ...Definition and Introduction to OPEC OPEC, The Organisation of the Petroleum Exporting Countries, is a name that has become synonymous with the worldwide petroleum market. But what does it do, who is involved and how important is OPEC to our day-to-day lives? This article aims to answer these basic questions in a clear and concise fashion. OPEC is a permanent organisation of 12 countries which are world-leaders in oil production. The... 1266 Words | 5 Pages Essay on The Effectiveness of OPEC ...market competitors will keep undercutting each other until neither are making the large revenue's they projected when they entered. It is at this point that OPEC, the organization for petroleum exporting countries steps in. Using strategy following game theory they control supply so that they can maintain prices at a level where member countries of OPEC can increase their individual revenue as a group. In the short term, OPEC's pricing policies increase revenue for...

1877 Words | 5 Pages Economics ...OPEC Presented By Ashok, Vinod and Prashant AGENDA  Introduction to OPEC  OPEC Important Events  Present and Future  Feedback Introduction What is OPEC?  The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.  Members Qatar (1961) Indonesia...

2099 Words | 9 Pages OPEC (Organization of Petroleum Exporting Countries) - InfopediaPk - All facts in one site OPEC (Organization of Petroleum Exporting Countries) OPEC (Organization of Petroleum Exporting Countries) Quick Facts Baghdad, Iraq September 10–14, 1960 in effect January 1961 11,854,977 km2 OPEC (Organization of Petroleum Exporting Countries) is an intergovernmental organization of 12 oil-producing countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. OPEC has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. It is considered to be one of the most effective organizations in the world. Indonesia withdrew in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter again. According to its statutes, one of the principal goals is the determination of the best means for safeguarding the organization's interests, individually and collectively.

It also pursues ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; giving due regard at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry. As of November 2010, OPEC members collectively hold 79% of world crude oil reserves and 44% of the world’s crude oil production, affording them considerable control over the global market. The next largest group of producers, members of the OECD and the Post-Soviet states produced only 23.8% and 14.8%, respectively, of the world's total oil production. History to came in force? OPEC Headquarters Venezuela and Iran were the first countries to move towards the establishment of OPEC in the 1960s by approaching Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communication among petroleum-producing nations. The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.

Later members include Algeria, Ecuador, Gabon, Indonesia, Libya, Qatar, Nigeria, and the United Arab Emirates. In 10–14 September 1960, at the initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of the crude oil produced by their respective countries. OPEC was founded to unify and coordinate members' petroleum policies. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962) – suspended its membership from January 2009. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at the end of that year, having become a net importer of oil and being unable to meet its production quota.

A statement released by OPEC on 10 September 2008 confirmed Indonesia's withdrawal, noting that it "regretfully accepted the wish of Indonesia to suspend its full Membership in the Organization and recorded its hope that the Country would be in a position to rejoin the Organization in the not too distant future." ; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992 October although it rejoined in October 2007; Angola joined on the first day of 2007 and Gabon (1975–1994). OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. Norway and Russia have attended OPEC meetings as observers. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo, OPEC's Secretary General, recently asked Sudan to join.

Iraq remains a member of OPEC, but Iraqi production has not been a part of any OPEC quota agreements since March 1998. Current members OPEC has twelve member countries: six in the Middle East (Iran, Iraq, Kuwait, Qatar, Saudi Arabia, United Arab Emirates), four in Africa (Algeria, Angola, Libya, Nigeria), one in Southeast Asia (Indonesia), and two in South America (Ecuador, Venezuela). Create a free website OPEC - Zimbio OPEC No articles yet. Overview A community portal about OPEC with blogs, videos, and photos. According to Wikipedia.org: The Organization of the Petroleum Exporting Countries is an international organization made up of Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. Since 1965 its international... more A community portal about OPEC with blogs, videos, and photos. According to Wikipedia.org: The Organization of the Petroleum Exporting Countries is an international organization made up of Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

Since 1965 its international headquarters have been in Vienna, Austria. It is considered to be a cartel by many observers . Featured Stories OPEC organisation in poll - public opinion online Details ENG -The Organization of Petroleum Exporting Countries (OPEC) is a cartel of twelve countries made up of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. The organization has maintained its headquarters in Vienna since 1965, and hosts regular meetings among the oil ministers of its Member Countries. Indonesia withdrew its membership in OPEC in 2008 after it became a net importer of oil, but stated it would likely return if it became a net exporter again. According to its statutes, one of the principal goals is the determination of the best means for safeguarding the Organization's interests, individually and collectively. It also pursues ways and means of ensuring the stabilization of prices in international oil ...

No shortage of crude oil by OPEC It takes a price increase There is a lot that we can do to curb speculation, but the claim that rising gas prices are not based on supply and demand is simply not true [“OPEC: No shortage of crude oil in market,” Business, April 19]. Speculators only magnify and quicken the effects of supply and demand. In this case, the cutoff of Libyan oil was almost 2 percent of the world supply and OPEC’s spare capacity turned out to be a mirage. Dick Burkhart, Seattle Read more: The Seattle Times (April 25, 2011) martina - in poll OPEC Chances for Economic Recovery Linked to OPEC Top officials with the Organization of Petroleum Exporting Countries are meeting in Vienna Sunday, and are expected to make a decision about possible cuts in oil production to boost prices. The meeting is being watched closely by the USA and other industrial countries, with some officials warning new cuts and higher oil prices could keep the global economy mired in a recession. OPEC members gathering in Vienna face a difficult decision. Many of the oil-exporting countries would like to see higher prices.

But Saudi Oil Minister Ali al-Naimi says the global recession makes that difficult. ... taktek - in poll OPEC OPEC says it's willing to cut oil production OPEC, supplier of 40 percent of the world's oil, will reduce oil production if necessary to support prices, Secretary General Abdalla el-Badri said. "I am sure if at the May meeting there is a need to cut, they will take that decision," el-Badri said Sunday. "In OPEC member countries, 35 projects have been delayed because of falling oil prices." Production cuts by the Organization of Petroleum Exporting Countries since September have failed to raise oil prices to the $70 a barrel sought by members as the global recession erodes demand. The average price in the first quarter was $43.32 a ... taktek - in poll OPEC

Question: Since 1965, where has the headquarters of the Organization of the Petroleum Exporting Countries (OPEC) been located?
Answer: Vienna, Austria