Opec – Formation and Influence on the World Economy
OPEC – Formation and influence on the world economy
Ahlam
Colorado Heights University
Abstract
The Organization of Petroleum Exporting Countries (OPEC) , is a permanent intergovernmental Organization, created at the Baghdad Conference on September 14 th, 1960, consisting of the world's major oil-exporting nations. It was founded to coordinate and unify the petroleum policies of its members, to serve as a platform for oil producers to achieve their economic objectives by limiting supplies in the hope of keeping prices and profits high. OPEC's influence on the market is undeniable. Because its member countries hold the vast majority of crude oil reserves (about 80%) and nearly half of natural gas reserves in the world, the organization has considerable power politically and economically. Research shows that OPEC is getting weaker, due to competition of Non-OPEC oil producers and the emerging alternative energies that are likely to blossom in the years to come due to rising crude oil prices.
OPEC – Formation and influence on the world economy History The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental
Organization, created at the Baghdad Conference on September 14 th, 1960, Saudi Arabia, Iran, Iraq,
Venezuela and Kuwait. OPEC has since expanded to include other members: Qatar in 1961, Libya in
1962, the United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973, and recently
Angola in 2007 making a total membership of 12. For the first five years, OPEC’s headquarters was set in Geneva, Switzerland. It was moved to Vienna, Austria, on September 1, 1965. (OPEC, March 2009)
OPEC was created in a time when 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- brief history," 2010) The purpose of OPEC is to serve as a platform for oil
Ahlam
Colorado Heights University
Abstract
The Organization of Petroleum Exporting Countries (OPEC) , is a permanent intergovernmental Organization, created at the Baghdad Conference on September 14 th, 1960, consisting of the world's major oil-exporting nations. It was founded to coordinate and unify the petroleum policies of its members, to serve as a platform for oil producers to achieve their economic objectives by limiting supplies in the hope of keeping prices and profits high. OPEC's influence on the market is undeniable. Because its member countries hold the vast majority of crude oil reserves (about 80%) and nearly half of natural gas reserves in the world, the organization has considerable power politically and economically. Research shows that OPEC is getting weaker, due to competition of Non-OPEC oil producers and the emerging alternative energies that are likely to blossom in the years to come due to rising crude oil prices.
OPEC – Formation and influence on the world economy History The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental
Organization, created at the Baghdad Conference on September 14 th, 1960, Saudi Arabia, Iran, Iraq,
Venezuela and Kuwait. OPEC has since expanded to include other members: Qatar in 1961, Libya in
1962, the United Arab Emirates in 1967, Algeria in 1969, Nigeria in 1971, Ecuador in 1973, and recently
Angola in 2007 making a total membership of 12. For the first five years, OPEC’s headquarters was set in Geneva, Switzerland. It was moved to Vienna, Austria, on September 1, 1965. (OPEC, March 2009)
OPEC was created in a time when 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- brief history," 2010) The purpose of OPEC is to serve as a platform for oil
References: Maloney , M. (2011, June 09). Market manipulation fail. Retrieved from http://wealthcycles.com/blog/2011/06/09/opec-is-in-control-of-the-oil-prices Secor, S. (2011, July 11). How does opec affect the world?. Retrieved from http://www.ehow.com/info_8720400_opec-affect-world.html Rousseau, D What does the future hold for opec ? (2nd quarter 2011)