OPEC essay

Topics: OPEC, Saudi Arabia, Peak oil Pages: 3 (1110 words) Published: January 5, 2014
The Organization of the Petroleum 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 1965, OPEC had its headquarters in Geneva, Switzerland, which was then shifted to Vienna, Austria. More than three-quarters of the world's proven oil reserves are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East, amounting to 72 per cent of the OPEC total. The objective of the OPEC is to coordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; to ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consuming nations; a steady income to producers and a fair return on capital to those investing in the petroleum industry. One of the principal goals of OPEC is to determine the best means for safeguarding the interests of its members, individually and collectively. OPEC also pursues ways and means to eliminate harmful and unnecessary fluctuations in international oil prices. It gives 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. The ability of OPEC to determine production and prices, and thus influence the market, has been widely criticized. Arab members of OPEC alarmed the developed world when they used the "oil weapon" during the Yom Kippur War by implementing oil embargoes and initiating the 1973 oil crisis. However, the ability of OPEC to control the price of oil has diminished in recent...
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