Qatar enters into custody. Opek: goals, objectives, headquarters, history of creation, secretary general
Huge role in international trade plays oil and petroleum products obtained from it. An increase or decrease in the production of this valuable raw material can seriously affect the economic situation in many countries.
As you know, the international organization called OPEC has considerable influence in this area. What is hidden behind this abbreviation and why does OPEC have such influence in the world?
What is OPEC? Decoding the abbreviation.
An organization whose name is known to almost everyone who is even slightly interested in international politics - OPEC- is an association of a number of countries engaged in oil production and selling this raw material on the international market. This abbreviation is a direct transliteration of the English ORES, which stands for Organization of Petroleum Exporting Countries.
Translation of the title into Russian – Organization of Petroleum Exporting Countries. It includes states whose role in oil trade is quite large, and whose pricing policy is capable to one degree or another in the oil industry.
History of the creation of OPEC
The formation of OPEC is directly related to the process of decolonization that swept our planet after the Second World War. Small states that previously had no influence on the world stage, and were often under colonial oppression, realized that they had a certain leverage on world politics.
This lever for them was the production and sale of oil - the most valuable resource on which the world economy. In 1960, the founding meeting of OPEC took place in Baghdad, in which several Arab countries– Saudi Arabia, Iraq, Kuwait and Iran, as well as Venezuela, whose government, in fact, took the initiative to create the organization. 
The unification of oil-producing countries initially aimed to reduce the costs associated with oil production and to confront powerful oil corporations that entered into a cartel agreement to reduce the cost of oil.
In this way, corporations hoped to bring the oil-producing industries of poor countries to bankruptcy and make them their property, or at least increase their influence on the governments of these states. The association of “black gold” exporters made it possible to effectively resist corporations, keeping prices at an economically reasonable level.
Expansion of OPEC and its influence
Despite the fact that OPEC united mainly Arab countries, its governing body, the OPEC Secretariat, was first located in Geneva (Switzerland) and then moved to Vienna (Austria). In subsequent years, the organization was joined by:
- in 1961 - Qatar;
- in 1962 - Libya and Indonesia;
- in 1967 - UAE;
- in 1969 - Algeria;
- in 1971 - Nigeria;
- in 1973 - Ecuador;
- in 1975 - Gabon;
- in 2007 - Angola. 
Subsequently, two countries left the organization - Gabon in 1994 and Indonesia in 2008. Today, OPEC includes 12 states that, to one degree or another, influence global oil production and the cost of “black gold”.
According to experts, today OPEC member countries control from 60 to 70 percent of all world oil production and have the ability to influence its price.
Why is Russia not part of OPEC?
Despite the fact that OPEC was created as a counterweight to transnational corporations, the influence of Western political structures on the governments of the countries that are members of the organization and on the policies they pursue, it is difficult to overestimate. From the moment Russia (then the USSR) entered the world oil trading market, there has been a competitive struggle between it and the OPEC countries, supported by leading Western countries.
One of the most dramatic episodes of this struggle was the decline in oil prices in the 80s of the twentieth century, after the commissioning of an oil pipeline in the USSR transporting " black gold" to Europe.
Many political scientists believe that the deterioration of the global oil trade situation seriously undermined the economy of the USSR and largely contributed to its collapse. In fact, they did not have such a serious impact on the economy of the USSR, since they made up a much smaller share in it than in modern Russia.
One way or another, but economic policy OPEC for a long time was under the control of Western countries and in many ways contradicted the interests of Russia. The turning point in this relationship came in the mid-2000s, when unbridled growth in demand caused oil prices to skyrocket. 
From this moment on, there has been a tendency for a number of OPEC countries to move closer to Russia in many respects. The crisis in the oil industry in 2014-15 only contributed to the strengthening of interaction between Russia and the OPEC states, whose interests came into serious conflict with the interests of their Western partners.
Countries included in OPEC
The Organization of the Petroleum Exporting Countries at Wikimedia Commons
OPEC member countries control about 2/3 of the world's oil reserves. They account for ~35% of global production or half of global oil exports. The proven oil reserves of OPEC countries currently amount to 1199.71 billion barrels.
Organizational goals
The goal of OPEC is to coordinate activities and develop a common policy regarding oil production among the member countries of the organization, maintaining stable oil prices, ensuring stable supplies of oil to consumers, and obtaining returns from investments in the oil industry.
The energy and oil ministers of OPEC member states meet twice a year to assess the international oil market and forecast its development for the future. At these meetings, decisions are made on the actions that need to be taken to stabilize the market. Decisions on changes in oil production volumes in accordance with changes in market demand are made at OPEC conferences.
Organization structure
The highest body of the organization is the Conference of participating countries, convened, as a rule, 2 times a year. The Conference decides on the admission of new members, approves the composition of the Board of Governors, the budget and financial report, appoints the Chairman of the Board of Governors, the Secretary General, his deputies and the auditor.
The Governing Council prepares issues for the Conference and manages the work of the Secretariat, which is a permanent body. The Secretariat conducts research and prepares proposals for the Board of Governors and the Conference, monitors the implementation of decisions made, and draws up draft annual OPEC budgets. It includes administrative, economic, legal, information and technical departments.
Story
1960s
The Organization of Petroleum Exporting Countries was founded at a conference in Baghdad on September 10-14, 1960, at the initiative of five developing oil-producing countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
The 1960s were characterized by the process of decolonization and the formation of new independent states. During this period, world oil production was dominated by seven largest transnational companies, the so-called “Seven Sisters”: Exxon, Royal Dutch Shell, Texaco, Chevron, Mobil, Gulf Oil and British Petroleum. OPEC was established after the Seven Sisters cartel unilaterally reduced the purchase prices for oil, based on which they paid taxes and rent for the right to develop natural resources oil-producing countries.
The purpose of creating the organization was the desire of the new independent states to gain control over their resources and their exploitation, taking into account national interests. In the 1960s, there was an excess supply of oil in world markets, and therefore one of the goals of creating OPEC was to prevent prices from falling further. OPEC developed its collective vision for oil production and created the organization's Secretariat, which was initially located in Geneva, and from September 1, 1965 - in Vienna.
In 1968, OPEC adopted the Declaration “On the Oil Policy of OPEC Member Countries,” which emphasized inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interests of their national development.
During the 1960s, the number of OPEC member countries doubled due to the addition of five more oil-producing countries: Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969).
In November 1962, OPEC was registered with the UN Secretariat as a full-fledged intergovernmental organization. In 1965, OPEC established official relations with the UN Economic and Social Council and became a participant in the UN Conference on Trade and Development.
1970s
During this decade, OPEC's influence on the world market grew significantly due to the fact that the governments of OPEC member countries took control of oil production on their territory.
In the 1970s, OPEC emerged as a powerful oil market organization whose policies significantly influenced crude oil prices. This was facilitated by two most important events in the world: the Arab oil embargo in 1973 and the beginning of the Iranian revolution in 1979.
OPEC has expanded its powers since the first summit of heads of state and government in Algeria in 1975. OPEC called for new era cooperation in international relations in the interests of global economic development and stability. This led to the creation of the OPEC Fund international development in 1976. Member countries have undertaken ambitious socio-economic development schemes.
During the 1970s, the number of OPEC member countries increased to 13 by 1975 due to: Nigeria (1971), Ecuador (1973) and Gabon (1975).
On December 21, 1975, OPEC headquarters was captured by a group of six armed terrorists led by Carlos the Jackal. Three people were killed as a result: an Austrian policeman, a member of the Libyan delegation and an Iraqi security officer.
1980s
At the beginning of this decade, oil prices reached record levels, but then began to decline and in 1986 reached a minimum of about $10 per barrel due to supply exceeding demand and a decrease in hydrocarbon consumption due to the replacement of energy sources.
The share of OPEC member countries in world oil production has fallen sharply, total oil revenues have fallen by a third from previously reached levels, which has caused serious economic difficulties for many member countries of the organization.
Thanks to the measures taken within the organization, prices were stabilized at a level approximately equal to half the price level of the early 1980s, and the share of OPEC member countries in the context of newly growing world production began to recover. This was achieved through the agreement and establishment of oil production quotas for OPEC member countries and the establishment of a pricing mechanism based on the OPEC basket. During these same years, it was possible to establish dialogue and establish cooperation with countries that are not members of OPEC.
1990s
Prices have moved less dramatically during this decade compared to the previous one. Thanks to the timely actions of OPEC, it was possible to avoid an oil supply crisis due to military events in the Middle East in 1990-1991. However, excessive volatility and general price weakness prevailed during this decade due to the economic downturn in Southeast Asia and the mild winter in the Northern Hemisphere in 1998-1999. However, the world experienced a steady recovery, which arose from greater integration of the oil market, which took into account the changes that occurred in the world after the collapse of the USSR and the collapse of the socialist system. This period was also characterized by growing processes of globalization, a revolution in communications and other high-tech areas. Serious changes have occurred in issues of dialogue between oil producers and consumers, as well as in issues of relations between OPEC member countries and non-OPEC members. Since the 1992 Earth Summit, climate change negotiations have gained momentum under the auspices of the United Nations. In these conditions, OPEC seeks to balance oil supplies to the world market.
During this decade, OPEC's composition changed: Gabon left OPEC, and Ecuador suspended its membership in the organization until October 2007.
At the beginning of December 2018, the Qatari authorities decided to leave OPEC and focus entirely on production natural gas and production of liquefied gas.
OPEC "basket"
The term OPEC "basket" (OPEC Reference Basket of crudes) was officially introduced on January 1, 1987. The “basket” price is determined as the arithmetic average of the physical prices of the following types of oil: Arab Light (Saudi Arabia), Basra Light (Iraq), Bonny Light (Nigeria), Es Sider (Libya), Girassol (Angola), Minas (Indonesia), Iran Heavy (Iran), Kuwait Export (Kuwait), Merey (Venezuela), Murban (UAE), Oriente (Ecuador), Qatar Marine (Qatar), Saharan Blend (Algeria).
The historical maximum for the OPEC “basket” is the price level of $140.73 per barrel, registered on July 3, 2008.
In March 2008, Oriente (Ecuador) was added to the basket. In January 2009, Minas (Indonesia) was removed from the basket, and Merey (Venezuela) was added to the basket instead of BCF 17 (Venezuela). Since January 2016, Indonesia has been included in the basket again. Thus, currently, the price of the OPEC basket is determined as the arithmetic average of the physical prices of the 13 above-mentioned types of oil produced by the cartel countries.
OPEC quotas
| A country | Quota (01/07/05) | Loot (03/16) | Loot (05/16) | Loot (06/16) | Possibility of mining |
|---|---|---|---|---|---|
| Algeria Algeria | 894 | 1084 | 1 080 | 1 085 | 1 430 |
| Angola Angola | 1 900 | 1 776 | 1 773 | 1 773 | 1 700 |
| Indonesia Indonesia | - | no data | |||
| Iran Iran | 4 110 | 3 291 | 3 562 | 3 644 | 3 750 |
| Iraq Iraq | 4 189 | 4 281 | 4 217 | ||
| Kuwait Kuwait | 2 247 | 2 772 | 2 740 | 2 800 | 2 600 |
| Libya Libya | 1 500 | 345 | 296 | 332 | 1 700 |
| Nigeria Nigeria | 2 306 | 1 722 | 1 424 | 1 523 | 2 250 |
| Qatar Qatar | 726 | 664 | 659 | 662 | 850 |
| Saudi Arabia Saudi Arabia | 10 099 | 10 120 | 10 241 | 10 308 | 10 500 |
| UAE UAE | 2 444 | 2 682 | 2 826 | 2 914 | 2 600 |
| Venezuela Venezuela | 3 225 | 2 320 | 2 188 | 2 095 | 2 450 |
| Total | 31 422 | 32 251 | 32 361 | 32 643 | 32 230 |
| Algeria | Angola | Ecuador | Iran | Iraq | Kuwait | Libya | Nigeria | Qatar | Saudi Arabia | UAE | Venezuela | Total: | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Population (million people) | 36,30 | 19,05 | 14,31 | 75,35 | 32,44 | 3,57 | 6,56 | 159,64 | 1,70 | 26,11 | 4,74 | 28,95 | 408,72 |
| Area (1000 km²) | 2 382 | 1 247 | 281 | 1 648 | 438 | 18 | 1 760 | 924 | 11 | 2 150 | 84 | 916 | 11859 |
| Population density (inhabitants per km²) | 15 | 15 | 51 | 46 | 74 | 198 | 4 | 173 | 155 | 12 | 56 | 32 | 34,47 |
| GDP per capita (USD) | 4 488 | 4 478 | 3 984 | 4 741 | 3 881 | 36 820 | 11 314 | 1 213 | 75 643 | 16 996 | 56 812 | 10 223 | - |
| GDP in market prices(billion dollars) | 162,92 | 85,31 | 57,00 | 357,22 | 125,90 | 131,32 | 74,23 | 193,67 | 128,59 | 443,69 | 269,10 | 295,96 | 2 324,91 |
| Export value ($ billion) | 57,80 | 49,26 | 17,37 | 83,79 | 52,08 | 65,98 | 46,31 | 70,58 | 72,05 | 235,34 | 198,36 | 65,79 | 1 014,71 |
| Oil exports (billions of dollars) | 38,30 | 47,24 | 9,65 | 71,57 | 51,15 | 61,67 | 41,87 | 61,80 | 29,28 | 196,19 | 74,03 | 62,32 | 745,07 |
| Balance of payments (billions of dollars) | 15,10 | −1,04 | −0,43 | 21,56 | 6,90 | 43,14 | 16,16 | 7,83 | 38,79 | 23,27 | 14,38 | 8,56 | - |
| Proven oil reserves (billion barrels) | 12,20 | 9,50 | 7,21 | 151,17 | 143,10 | 101,50 | 47,10 | 37,20 | 25,38 | 264,52 | 296,50 | 211,17 | - |
| Oil production (1000 b/d) | 1 190 | 1 691 | 476 | 3 544 | 2 358 | 2 312 | 1 487 | 2 048 | 733 | 8 166 | 2 324 | 2 854 | 29 213 |
| Refinery capacity (1000 b/d) | 652 | 39 | 188 | 1 741 | 800 | 936 | 380 | 445 | 80 | 2 109 | 466 | 982 | 8 818 |
| Petroleum products production (1000 b/d) | 631,5 | 47,0 | 185,1 | 1 743,3 | 513,2 | 892,7 | 545,8 | 249,4 | 133,0 | 1 914,0 | 355,4 | 1 414,8 | 8625,2 |
| Consumption of petroleum products (1000 b/d) | 338 | 110 | 220 | 1 775 | 566 | 260 | 299 | 259 | 116 | 1 436 | 238 | 675 | 6 282 |
| Oil export (1000 b/d) | 709 | 1 683 | 340 | 2 583 | 1 890 | 1 430 | 1 118 | 2 464 | 586 | 6 644 | 2 103 | 1 562 | 23 112 |
| Export of petroleum products (1000 b/d) | 314,1 | 7,5 | 28,1 | 370,6 | 5,0 | 631,6 | 48,3 | 23,1 | 321,6 | 950,9 | 187,9 | 751,1 | 3 639,8 |
Russia and OPEC
Relations with Russia have a significant impact on the organization's policies. Out of fear that Russia will increase its market share, OPEC refuses to reduce production unless Russia does the same. This situation is the main obstacle to the recovery of world oil prices.
In 2015, OPEC invited Russia to join, but the country decided to remain an observer.
OPEC problems
OPEC brings together countries whose interests are often opposing. Saudi Arabia and other countries of the Arabian Peninsula are sparsely populated, but have huge oil reserves, large investments from abroad and maintain very close relations with the Seven Sisters. Other OPEC members, such as Nigeria and Venezuela, have high populations and poverty. These poorest countries are pursuing expensive economic development programs and are heavily indebted. They are forced to produce and sell significant volumes of oil, especially if the price of crude oil declines.
Also in the 1980s, Iraq and Iran, which went to war with each other, increased oil production to pay for military expenses. Saudi Arabia pressured Iran and Iraq to return to quota compliance.
Although OPEC countries successfully negotiate oil production quotas, there are no mechanisms within OPEC to monitor and regulate compliance with them. Therefore, quotas are often not met. OPEC countries have produced an average of 31 million barrels of crude oil per day since 2012, despite the fact that total quotas were set at 30 million barrels per day.
A prerequisite for the creation of the Organization of Petroleum Exporting Countries (OPEC, the original abbreviation in English language- OPEC) was the lack of ability for the states of the Middle East region and the Middle East to independently resist the neo-colonial policies pursued against their interests, as well as the glut of oil on the world market. The result is a sharp decline in prices and a steady trend for further decline. Fluctuations in the price of oil became noticeable for established exporters, were uncontrollable, and the consequences were unpredictable.
To avoid a crisis and save the economy, representatives of the governments of interested parties in Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad (September 10-14, 1960), where they decided to establish the Organization of Petroleum Exporting Countries. Half a century later, this association remains one of the most influential for the world economy, but is no longer key. The number of OPEC countries changed periodically. now this 14 oil producing states.
Historical reference
Before the Baghdad conference, prices for “black gold”; dictated by the oil cartel of seven oil companies Western powers, called the "seven sisters". Having become members of the OPEC association, the member countries of the organization could jointly influence the pricing and volume of oil sales. The history of the development of the organization in stages is as follows:
- August 1960 The price drops to a critical level after new players (USSR and USA) entered the oil arena.
- September 1960. A meeting of representatives of Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela is held in Baghdad. The latter initiated the creation of OPEC.
- 1961-1962 entry of Qatar (1961), Indonesia (1962), Libya (1962).
- 1965 Beginning of cooperation with the UN Economic and Social Council.
- 1965-1971 The membership of the association was replenished due to the entry of the United Arab Emirates (1965), Algeria (1969), Nigeria (1971).
- October 16, 1973 Introduction of the first quota.
- 1973-1975 Ecuador (1973) and Gabon (1975) joined the organization.
- 90s. Gabon's withdrawal from OPEC (1995) and Ecuador's voluntary suspension (1992).
- 2007-2008 Resumption of activity by Ecuador (2007), suspension of Indonesia's membership (January 2009 became an importer). Entry into the Union of Angola (2007). Becomes an observer Russian Federation(2008) without the obligation to obtain membership.
- 2016 Indonesia renewed its membership in January 2016, but decided to suspend its membership again on November 30 that year.
- July 2016 Gabon rejoined the organization.
- 2017 accession of Equatorial Guinea.
Within 10 years of its founding, OPEC members experienced rapid economic growth, peaking between 1974 and 1976. However, the next decade was marked by another drop in oil prices, by half. It is easy to trace the relationship between the periods described and turning points in the history of world development.
OPEC and the world oil market
The object of OPEC's activity is oil, and to be precise, its cost. The opportunities provided by joint management of the petroleum products market segment allow you to:
- protect the interests of the states that are part of the organization;
- ensure control over the stability of oil prices;
- guarantee uninterrupted supplies to consumers;
- provide the economies of the participating countries stable income from oil production;
- predict economic phenomena;
- develop a unified industry development strategy.
Having the ability to control the volumes of oil sold, the organization sets itself precisely these goals. Currently, the production level of the participating countries is 35% or 2/3 of the total. All this is possible thanks to a clearly structured, well-functioning mechanism.
OPEC structure
The community is organized in such a way that the decisions taken do not contradict the interests of any of the OPEC member countries. A structured diagram taking into account the importance of divisions looks like this:
- OPEC conference.
- Secretariat with general secretary at the head.
- Board of Governors.
- Committees.
- Economic Commission.
The conference is a meeting held twice every year at which ministers from OPEC member countries discuss key strategic issues and make decisions. Representatives are also appointed here, one from each incoming state who form the board of governors.
The Secretariat is appointed as a result of a meeting of the commission, and the task of the Secretary General is to represent the position of the organization in interactions with other associations. Whatever country is part of OPEC, its interests will be represented by one person (the Secretary General). All his actions are the product of decisions made by the organization’s management after a collegial discussion at the conference.
Composition of OPEC
OPEC includes countries financial well-being which directly depends on fluctuations in the global oil market. Any state can apply. Today, the geopolitical composition of the organization is as follows.
Countries of Asia and the Arabian Peninsula in OPEC
This part of the world map is represented in OPEC by Iran, Saudi Arabia, Kuwait, Iraq, Qatar, the United Arab Emirates and Indonesia (until its release in January 2009). Although the latter is different geographical location, its interests have continuously intersected with other Asian partners since the emergence of the Asia-Pacific Forum Economic Cooperation(ARES).
Countries on the Arabian Peninsula are characterized by monarchical rule. Confrontations have not stopped for centuries, and since the mid-20th century, people have been dying for oil all over the world. A series of conflicts is plaguing Iraq, Kuwait, and Saudi Arabia. Wars are sparked to destabilize the oil market and, as a result, increase the number of petrodollars earned, increasing the demand for oil.
South American countries that are members of OPEC
Latin America is represented by Venezuela and Ecuador. The first is the initiator of the creation of OPEC. Venezuelan government debts last years grew up. The reason is political instability and falling prices on the world oil market. This state prospered only if the cost of a barrel of oil was above average.
Ecuador is also unstable due to its public debt of 50% of GDP. And in 2016, the government of the country had to pay 112 million dollars as a result of the court. American corporations Chevron for failure to fulfill obligations accepted 4 decades ago, as part of the development of South American oil fields. For a small state this is a significant part of the budget.
African countries and OPEC
OPEC's actions protect the welfare of 6 out of 54 African countries. Namely, the interests of:
- Gabon;
- Equatorial Guinea;
- Angola;
- Libya;
- Nigeria;
- Algeria.
This region has high population rates, as well as unemployment and the number of people living below the poverty line. Again this is to blame low price barrels of oil, high level of competition and oversaturation of the oil market with raw materials.
OPEC quotas are leverage on the world economy
The raw material production quota is the norm for oil exports established for community members. October 1973 was the moment when an agreement was signed to reduce output by 5%. Decision changes in production volumes implied a price increase of 70%. These steps were a consequence of the outbreak of the “war doomsday", in which Syria, Egypt, and Israel participated.
Another agreement to reduce oil production, adopted the day after the introduction of the first quota. An embargo was imposed on the USA, Japan and some Western European countries. Within a month, quotas were introduced and abolished, determining to whom, how many barrels of oil per day to put up for sale, and at what price to sell the extracted raw materials.
Over the decades, practice has repeatedly confirmed the effectiveness of these levers of influence, proving the power of the exporting community. OPEC decisions on oil production are made after discussion of the issue by representatives of the organization's member countries.
Russia and OPEC
The influence of the exporting community has declined in recent years, which has made it impossible to pursue a monopoly policy, imposing unfavorable conditions on others. This became possible after oil producers from China, the United States, and the Russian Federation entered the arena. In order for the actions of the community of oil exporting countries to be controlled (not to go beyond the limits where they could harm states that do not have membership), the Russian Federation, represented by the government, took on the role of observer. Russia is an official observer in OPEC, while at the same time representing a counterweight. It has the ability to reduce the price of a barrel by increasing production levels, thereby influencing the global market.
OPEC problems
The main difficulties that we have to deal with are contained in the following theses:
- 7 out of 14 members are at war.
- Technological imperfection, lag behind progress, feudal atavism political system some participating countries.
- Lack of education, lack of qualified personnel at all levels of production in most participating countries.
- Financial illiteracy of the governments of most OPEC member countries, unable to adequately manage large profits.
- Growing influence (resistance) of states that are not members of the coalition.
Under the influence of these factors, OPEC ceased to be the leading regulator of the stability of the commodity market and the liquidity of the petrodollar.
OPEC countries and their capitals on the map (list 15) → members of the Organization of Petroleum Exporting Countries (OPEC). Below is a table of OPEC participating countries + map, capital, alphabetical list, flags and continents, in English and Russian
| No. Flag | Letter | A country | Capital | Continent | Letters |
| 1 | A | Algeria | Algeria | Africa | 5 |
| 2 | A | Angola | Luanda | Africa | 6 |
| 3 | IN | Venezuela | Caracas | South America | 9 |
| 4 | G | Gabon | Libreville | Africa | 5 |
| 5 | AND | Iraq | Baghdad | Asia | 4 |
| 6 | AND | Iran | Tehran | Asia | 4 |
| 7 | TO | Congo | Brazzaville | Africa | 5 |
| 8 | TO | Kuwait | Kuwait City | Asia | 6 |
| 9 | TO | Qatar | Doha | Asia | 5 |
| 10 | L | Libya | Tripoli | Africa | 5 |
| 11 | ABOUT | UAE | Abu Dhabi | Asia | 8 |
| 12 | N | Nigeria | Abuja | Africa | 7 |
| 13 | WITH | Saudi Arabia | Riyadh | Asia | 17 |
| 14 | E | Equatorial Guinea | Malabo | Africa | 21 |
| 15 | E | Ecuador | Quito | South America | 7 |
Presentation with flags for children and adults: the capitals of 15 OPEC countries. The ability to sort the table alphabetically, select the necessary neighboring states around and their capitals, friendly and unfriendly. Go to detailed map in Russian, look around the city, show border areas nearby, find and write down the names. How many adjacent states are neighbors of the 1st and 2nd order, their location in the region, as indicated
See on the diagram who they are neighbors with and the places nearby, where the nearest city on the border is located. List the names of continents and parts of the world, surrounding seas and oceans. Find out the number of letters in the name and which one it starts with, who is a member of the association of oil exporters from their continent
What is OPEC? International Organization of Petroleum Exporting Countries
Goals: coordination of activities and control of oil production volumes, stabilization of the oil products market and oil prices. For this purpose, the countries included in the cartel meet twice a year at OPEC conferences. Russia has been an observer in the OPEC system since 1998. The headquarters of the organization is Vienna, Austria. The next meeting will take place on December 5, 2018.
Full composition - which countries are part of OPEC + capital:
- Algiers, Algeria
- Angola, Luanda
- Venezuela, Caracas
- Gabon, Libreville
- Iran, Tehran
- Iraq, Baghdad
- Congo, Brazzaville
- Kuwait, Kuwait City
- Qatar, Doha
- Libya, Tripoli
- United United Arab Emirates, Abu Dhabi
- Nigeria, Abuja
- Saudi Arabia, Riyadh
- Equatorial Guinea, Malabo
- Ecuador, Quito
All OPEC conference members in English:
Full list - OPEC countries on the map and capitals
The table is alphabetical, it contains all the world's largest oil exporters, which are located on three continents of the earth - Asia, South America, Africa. Conference participants by continent:
According to the list, a group of fifteen participating states international conference in Austria, Europe. Also presented interactive map their locations in the world
Now you know which countries are part of the organization of oil exporting countries OPEC, you can list and show them on the world map 2019
The Organization of the Petroleum Exporting Countries, abbreviated as OPEC, (English OPEC, The Organization of the Petroleum Exporting Countries) is a cartel created by oil-producing powers to stabilize oil prices. Members of this organization are countries whose economies largely depend on revenues from oil exports. The main goal of the organization is control over world oil prices
OPEC was formed at an international conference on September 10-14, 1960 in Baghdad (Iraq). Initially, this organization included five countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Eight more new members were admitted between 1960 and 1975: Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador and Gabon. In December 1992, Ecuador left OPEC, and in January 1995, Gabon was expelled from it.
OPEC, as a permanent non-governmental organization, was created at a conference in Baghdad (Iraq) on September 10-14, 1960. Initially, the organization included Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. These five founding countries were later joined by nine more: Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973-- 1992), Gabon (1975--1994), Angola (2007).
The OPEC Charter was approved at the 2nd conference in Caracas on January 15-21, 1961. In 1965, the charter was completely revised. Later, numerous changes and additions were also made to it.
OPEC was established after the Seven Sisters, a cartel that united British Petroleum, Chevron, Exxon, Gulf, Mobil, Royal Dutch/Shell and Texaco and controlled the refining of crude oil and the sale of petroleum products throughout the world, unilaterally reduced purchase prices for oil, based on which they paid taxes and interest for the right to develop natural resources to oil-producing countries.
The initiator of the creation of the organization was Venezuela, the most developed of the oil-producing countries, which for a long time was subject to exploitation by oil monopolies. Understanding of the need to coordinate efforts against oil monopolies was also brewing in the Middle East. This was evidenced by the Iraqi-Saudi agreement on harmonizing Oil Policy in 1953 and the meeting of the Arab League in 1959, dedicated to oil problems, which was attended by representatives of Iran and Venezuela.
The immediate impetus that led to the creation of the Petroleum Exporters Association was another reduction in reference prices in 1959 by the International Petroleum Cartel, as well as the imposition of restrictions on oil imports into the United States.
The headquarters of OPEC was initially located in Geneva (Switzerland), then on September 1, 1965 it moved to Vienna (Austria).
The main goals of creating the Organization are:
- 1) coordination and unification of the oil policy of the member states;
- 2) determining the most effective individual and collective means of protecting their interests;
- 3) ensuring price stability on world oil markets;
- 4) attention to the interests of oil-producing countries and the need to provide: oil exporter Russia energy supply
- · sustainable incomes of oil-producing countries;
- · efficient, cost-effective and regular supply of consumer countries;
- · fair income from investments in the oil industry;
- · security environment in the interests of present and future generations.
- · cooperation with non-OPEC countries in order to implement initiatives to stabilize the world oil market.
Thus, the main goal of OPEC is the unified protection of its economic interests. In essence, OPEC marked the beginning of interstate regulation in energy sector in relation to the global oil market.
Only founding members and those countries whose applications for admission have been approved by the conference can be full members.
Any other country that exports crude oil on a significant scale and has interests fundamentally similar to those of the member countries may become a full member, provided that its admission is approved by a 3/4 majority, including the votes of all founding members.
The energy and oil ministers of OPEC member states meet twice a year to assess the international oil market and forecast its development for the future. At these meetings, decisions are made on the actions that need to be taken to stabilize the market. Decisions on changes in oil production volumes in accordance with changes in market demand are made at OPEC conferences.
OPEC member countries control about 2/3 of the world's oil reserves. They account for 40% of world production or half of world oil exports. Peak oil has not yet been passed only by OPEC countries and Russia (among the major exporters).
Major oil exporters such as Brunei, Great Britain, Mexico, Norway, Oman and Soviet Union, and then Russia, were never members of OPEC.
One of OPEC's tasks is to represent a unified position of oil-producing countries on the world oil market. From 1960 to 1973, the Organization could not really influence the balance of power in the oil market. The situation changed in the first half of the 1970s, when the Western world faced increasing inflation and a shortage of raw materials. The problem of oil shortage has become apparent. For example, the United States was forced to import about 35% of its petroleum products. At this time, OPEC began to defend its position regarding the principles of profit sharing in the oil market.
In October 1973, the Organization imposed an embargo on oil supplies to the United States in response to the latter's support for Israel in the war with Syria and Egypt. A barrel of oil rose in price from $3 to $5.11. By the end of the 70s, oil consumption began to decline for a number of reasons: the activity of non-OPEC countries in the oil market increased; a general decline in the economies of Western countries began to appear; decline in energy consumption. Oil prices began to decline.
During the 1970s, the price of oil continued to rise, as did the price of base metals, rubber, wheat and cotton. The increase in oil prices caused a boomerang effect and led to an increase in the prices of almost all goods and services. In 1974, the consumer price index rose 11%, so in 1975 President Ford was forced to enact an anti-inflation program.
Oil revenues for major Arab oil-producing countries, 1973-1978. grew at an unprecedented pace. For example, the income of Saudi Arabia increased from $4.35 billion to $36 billion, Kuwait - from $1.7 billion to $9.2 billion, Iraq - from $1.8 billion to $23.6 billion.
However, by the end of the 70s, oil consumption began to decline for a variety of reasons. Firstly, the activity of non-OPEC countries has increased in the oil market. Secondly, a general decline in the economies of Western countries began to appear. Third, efforts to reduce energy consumption have borne some fruit. In addition, the United States, concerned about possible shocks in oil-producing countries due to the high activity of the USSR in the region, especially after the introduction Soviet troops to Afghanistan, were ready to use military force. Eventually, oil prices began to decline.
After the 1973 embargo, Kissinger and Nixon began searching for a partner in the Middle East. Their choice was Iran, which did not take part in the embargo against the United States. Iran allowed ships to refuel in its ports and supported the US position towards the USSR. However, despite all the measures taken, the second oil crisis broke out in 1978. The main reasons were the revolution in Iran and the political resonance that the Camp David agreements caused between Israel and Egypt. By 1981, the price of oil reached $40 per barrel.
Ultimately, market forces, the active development of energy saving programs in Western countries and disagreements among OPEC members led to lower oil prices. Since 1981, the price of oil has been gradually falling, until recently. And although just recently it seemed that the 1981 level was unlikely to be reached in the foreseeable future, the situation has not only worsened, it has gotten out of control. It appears that the necessary lessons have not been learned from the past.
The weakness of OPEC was fully revealed in the early 1980s, when, as a result of the full-scale development of new oil fields outside OPEC countries, the widespread introduction of energy-saving technologies and economic stagnation, the demand for imported oil in the industrial developed countries sharply decreased, and prices fell by almost half.
The main disadvantage of OPEC is that it brings together countries whose interests are often opposing.
Saudi Arabia and other countries on the Arabian Peninsula are sparsely populated but have vast oil reserves, large foreign investments and very close relationships with Western oil companies.
Other OPEC countries, such as Nigeria, have high populations and poverty, have expensive economic development programs, and are heavily indebted. These countries are forced to produce and sell as much oil as possible.
Countries included in OPEC belong to different groups. The radical group includes Iraq, Iran, Libya and Algeria. They traditionally advocate setting prices at the highest possible level. The rest of the countries can be classified as moderate, which accordingly advocates moderate policies. Oil exporting countries realized that by regulating production volumes they could control oil prices, but also oil importing countries, and in a number of cases, oil monopolies, did everything to prevent let OPEC curb the growth of oil supply. In their pressure on OPEC, oil importing countries, and primarily the United States, have used and are using objective differences between OPEC member countries on the issue of expanding oil production. Many researchers emphasize the US desire to disrupt the unity of oil-producing countries and exclude the possibility of their joint actions. American capital, by hook or by crook, sought to strengthen its position in some oil-producing countries.
