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OPEC: Key Facts and Functions

OPEC is an intergovernmental organization consisting of 14 major oil-exporting countries founded in 1960 in Baghdad by five countries including Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization aims to coordinate and unify petroleum policies among member countries to ensure stable oil prices and a steady supply of oil globally. Together OPEC members supply over 40% of global crude oil and control nearly 80% of worldwide proven oil reserves.

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126 views2 pages

OPEC: Key Facts and Functions

OPEC is an intergovernmental organization consisting of 14 major oil-exporting countries founded in 1960 in Baghdad by five countries including Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The organization aims to coordinate and unify petroleum policies among member countries to ensure stable oil prices and a steady supply of oil globally. Together OPEC members supply over 40% of global crude oil and control nearly 80% of worldwide proven oil reserves.

Uploaded by

Nasih Noori
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

1.

The Organization of the Petroleum Exporting Countries (OPEC) is a group


consisting of 14 of the world’s major oil-exporting nations. OPEC was founded in
1960. OPEC, which describes itself as a permanent intergovernmental
organization, was created in Baghdad in Sept. 1960 by its founding members:
Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. The headquarters of the
organization are in Vienna, Austria, where the OPEC Secretariat, the executive
organ, carries out OPEC’s day-to-day business. According to its statutes, OPEC
membership is open to any country that is a substantial exporter of oil and shares
the ideals of the organization. After the five founding members, OPEC added 11
additional member countries as of 2019. They are, in order of joining, Qatar
(1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria
(1969), Nigeria (1971), Ecuador (1973), Gabon (1975), Angola (2007), Equatorial
Guinea (2017), and Congo (2018). However, Qatar terminated its membership
on Jan. 1, 2019, and Indonesia suspended its membership on Nov. 30, 2016, so
as of 2019 the organization consists of 14 states.
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2.  purpose of OPEC for members 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 members collectively supply about 41.9% of the world's crude oil production.

Together, OPEC members control about 79.4% of the world's total proven crude
reserves.

OPEC member countries monitor the market and decide collectively to raise or lower oil
production in order to maintain stable prices and supply.

A unanimous vote is required on raising or lowering oil production.

Each member country controls the oil production of its country, but OPEC aims to
coordinate the production policies of member countries.

Oil and energy ministers from OPEC member countries usually meet twice a year to
determine OPEC's output level. They also meet in extraordinary sessions whenever
required

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3. OPEC, Russia and other oil-producing nations agreed on Sunday to cut
output by a record amount, representing around 10 percent of global supply,
to support oil prices amid the coronavirus pandemic
The group, known as OPEC+, agreed to reduce output by 9.7 million barrels
per day (bpd) for May-June.

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