The International Trusteeship Organization is dealing with the issues. Organization of Petroleum Exporting Countries (OPEC): organizational characteristics and operational goals

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Historical reference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 an oil cartel of seven Western oil companies 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 described periods and turning points 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 with 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 total number. 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 departments 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, United United Arab Emirates and Indonesia (before release in January 2009). Although the latter has something different geographical location, its interests have continuously intersected with other Asian partners since the inception 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 as a result of the trial. 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 barrel of oil, high level 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 Yom Kippur War, in which Syria, Egypt, and Israel participated.

Another agreement to reduce oil production, adopted the day after the introduction of the first quota. To the USA, Japan and some Western European countries an embargo was imposed. 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 of the state system of 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.

The Organization of the Petroleum Exporting Countries, founded in 1960 by a number of countries (Algeria, Ecuador, Indonesia, Iraq, Iran, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates and Venezuela) with the purpose of coordinating the volume of sales and setting prices for crude oil. oil.

Due to the fact that OPEC controls approximately half of the world's oil trade, it is able to significantly influence the level of world prices. Per share oil cartel, which was registered with the UN as a full-fledged intergovernmental organization in 1962, accounts for about 40% of world oil production.

Brief economic characteristics of OPEC member states (in 2005)

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	Algeria	Indonesia	Iran	Iraq	Kuwait	Libya	Nigeria	Qatar	Saudi Arabia	UAE	Venezuela
Population (thousand people)	32,906	217,99	68,6	28,832	2,76	5,853	131,759	824	23,956	4,5	26,756
Area (thousand km 2)	2,382	1,904	1,648	438	18	1,76	924	11	2,15	84	916
Population density (persons per km 2)	14	114	42	66	153	3	143	75	11	54	29
GDP per capita ($)	3,113	1,29	2,863	1,063	27,028	6,618	752	45,937	12,931	29,367	5,24
GDP at market prices (millions of $)	102,439	281,16	196,409	30,647	74,598	38,735	99,147	37,852	309,772	132,15	140,192
Export volume (million $)	45,631	86,179	60,012	24,027	45,011	28,7	47,928	24,386	174,635	111,116	55,487
Oil export volume (million $)	32,882	9,248	48,286	23,4	42,583	28,324	46,77	18,634	164,71	49,7	48,059
Current balance ($ million)	17,615	2,996	13,268	-6,505	32,627	10,726	25,573	7,063	87,132	18,54	25,359
Proven oil reserves (million barrels)	12,27	4,301	136,27	115	101,5	41,464	36,22	15,207	264,211	97,8	80,012
Proven reserves natural gas(billion cubic meters)	4,58	2,769	27,58	3,17	1,557	1,491	5,152	25,783	6,9	6,06	4,315
Crude oil production volume (1,000 bbl/day)	1,352	1,059	4,092	1,913	2,573	1,693	2,366	766	9,353	2,378	3,128
Natural gas production volume (million cubic meters/day)	89,235	76	94,55	2,65	12,2	11,7	21,8	43,5	71,24	46,6	28,9
Oil refining capacity (1,000 bbl/day)	462	1,057	1,474	603	936	380	445	80	2,091	466	1,054
Petroleum products production (1,000 barrels/day)	452	1,054	1,44	477	911	460	388	119	1,974	442	1,198
Consumption of petroleum products (1,000 bbl/day)	246	1,14	1,512	514	249	243	253	60	1,227	204	506
Crude oil export volume (1,000 bbl/day)	970	374	2,395	1,472	1,65	1,306	2,326	677	7,209	2,195	2,198
Petroleum products export volume (1,000 bbl/day)	464	142	402	14	614	163	49	77	1,385	509	609
Volume of natural gas exports (million cubic meters)	64,266	36,6	4,735	--	--	5,4	12	27,6	7,499	--

Main goals of OPEC

The main goals of creating the Organization are:

• Coordination and unification of the oil policies of the member states.
• Determining the most effective individual and collective means of protecting their interests.
• Ensuring price stability on world oil markets.
• Attention to the interests of oil-producing countries and the need to ensure: sustainable income for oil-producing countries; efficient, cost-effective and regular supply of consumer countries; fair returns 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 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.

Organizational structure of OPEC

The highest body of OPEC is the Conference of Ministers of the states included in the organization; there is also a Board of Directors, in which each country is represented by one delegate. As a rule, it attracts the closest attention not only from the press, but also from key players in the global oil market. The conference determines the main directions of OPEC's policies, ways and means of their practical implementation and makes decisions on reports and recommendations submitted by the Board of Governors, as well as on the budget. It instructs the Council to prepare reports and recommendations on any issues of interest to the organization. The Conference is formed by the Board of Governors itself (one representative per country, as a rule, these are the ministers of oil, extractive industries or energy). She also elects the president and appoints the general secretary of the organization.

The Secretariat carries out its functions under the guidance of the Board of Governors. The Secretary General is the highest official Organization, OPEC Plenipotentiary Representative and Head of the Secretariat. He organizes and directs the work of the Organization. The structure of the OPEC secretariat includes three departments.

The OPEC Economic Commission is dedicated to promoting stability in international oil markets at fair price levels so that oil can maintain its importance as the primary global energy source in accordance with OPEC's objectives, closely monitoring changes in energy markets and keeping the Conference informed of these changes .

History of the development and activities of OPEC

OPEC's mission since the 1960s has been to provide common position oil producing countries in order to limit the influence of the largest oil companies on the market. However, in reality OPEC in the period from 1960 to 1973. could not change the balance of power in the oil market. Significant adjustments to the balance of power were made by the war that suddenly began in October 1973 between Egypt and Syria, on the one hand, and Israel, on the other. With the support of the United States, Israel managed to quickly regain the lost territories and already in November sign ceasefire agreements with Syria and Egypt.

October 17, 1973 OPEC opposed US policy by imposing an embargo on oil supplies to this country and increasing selling prices for the United States' Western European allies by 70%. Overnight, a barrel of oil rose in price from $3 to $5.11. (In January 1974, OPEC raised the price per barrel to $11.65). The embargo was introduced at a time when about 85% of American citizens were already accustomed to driving their own car to work. Although President Nixon introduced strict restrictive measures on the use of energy resources, the situation could not be saved, and for Western countries a period of economic recession began. At the peak of the crisis, the price of a gallon of gasoline in the United States rose from 30 cents to $1.2.

Wall Street's reaction was immediate. Naturally, in the wake of super profits, shares of oil producing companies went up, but all other shares in the period from October 17 to the end of November 1973 lost an average of 15%. During this time, the Dow Jones index fell from 962 to 822 points. In March 1974, the embargo against the United States was lifted, but the effect it had had could not be smoothed out. In the two years from January 11, 1973 to December 6, 1974, the Dow fell nearly 45%, from 1,051 to 577.

Oil revenues for major Arab countries-oil producers in 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.

In the wake of high oil revenues in 1976, OPEC created the Fund international development OPEC is a multilateral development financial institution. Its headquarters are also located in Vienna. The Fund is designed to promote cooperation between OPEC member states and other developing countries. International institutions whose activities benefit developing countries and all non-OPEC developing countries can benefit from the fund. The OPEC Fund provides loans (for preferential terms) three types: for projects, programs and balance of payments support. Resources consist of voluntary contributions from member states and profits generated through the fund's investment and lending operations.

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, 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.

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.

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. After this, the oil market experienced calm and a gradual decline in oil prices for 5 years. However, when in December 1985 OPEC sharply increased oil production to 18 million barrels per day, a real price war began, provoked by Saudi Arabia. Its result was that within a few months, crude oil fell in price by more than half - from 27 to 12 dollars per barrel.

The fourth oil crisis occurred in 1990. On August 2, Iraq attacked Kuwait, prices jumped from $19 a barrel in July to $36 in October. However, then oil prices fell to its previous level even before the start of Operation Desert Storm, which ended with the military defeat of Iraq and the economic blockade of the country. Despite persistent oil overproduction in most OPEC countries and increased competition from other oil-producing countries, oil prices remained relatively stable throughout the 1990s compared to the fluctuations they experienced in the 1980s.

However, at the end of 1997, oil prices began to fall, and in 1998, the world oil market was gripped by an unprecedented crisis. Analysts and experts cite many various reasons this sharp drop in oil prices. Many are inclined to place all the blame on OPEC's decision, made at the end of November 1997 in Jakarta (Indonesia), to raise the oil production ceiling, as a result of which additional volumes of oil were allegedly released onto the markets and a decrease in prices occurred. The efforts made by OPEC and non-OPEC countries in 1998 undoubtedly played a critical role in preventing a further collapse of the global oil market. Without the measures taken, the price of oil, according to some experts, could have fallen to 6-7 dollars per barrel.

Development problems of OPEC countries

One of the main disadvantages of OPEC is that it brings together countries whose interests are often opposed. Saudi Arabia and other countries Arabian Peninsula They are sparsely populated, but have huge oil reserves, large investments from abroad and maintain very close relations with Western oil companies.

Other OPEC countries, such as Nigeria, have high populations and poverty and have expensive programs economic development and are in huge debt.

The second seemingly simple problem is the banal “where to put the money.” After all, it is not always easy to properly manage the shower of petrodollars pouring into the country. The monarchs and rulers of the countries upon which wealth fell, sought to use it “for the glory of their own people” and therefore started various “construction projects of the century” and other similar projects that cannot be called a reasonable investment of capital. Only later, when the euphoria from the first happiness had passed, when the ardor had cooled a little due to the fall in oil prices and the decline in government revenues, did the state budget begin to be spent more wisely and competently.

Third, main problem is compensation for the technological backwardness of the OPEC countries from the leading countries of the world. After all, by the time the organization was created, some of the countries that were part of it had not yet gotten rid of the remnants of the feudal system! The solution to this problem could be accelerated industrialization and urbanization. The introduction of new technologies into production and, accordingly, people’s lives did not pass without leaving a mark on the people. The main stages of industrialization were the nationalization of some foreign companies, for example ARAMCO in Saudi Arabia, and the active attraction of private capital into industry. This was carried out through comprehensive government assistance to the private sector of the economy. For example, in Arabia, 6 special banks and funds were created that provided assistance to entrepreneurs under state guarantees.

The fourth problem is the insufficient qualifications of national personnel. The fact is that workers in the state were unprepared for the introduction of new technologies and were unable to maintain modern machines and equipment that were supplied to oil production and processing enterprises, as well as other factories and enterprises. The solution to this problem was to attract foreign specialists. It wasn't as easy as it seems. Because this soon gave rise to a lot of contradictions, which intensified with the development of society.

Thus, all eleven countries are deeply dependent on the income of their oil industry. Perhaps the only exception among OPEC countries is Indonesia, which receives significant income from tourism, timber, gas and other raw materials. For the remaining OPEC countries, the level of dependence on oil exports ranges from a low of 48% in the case of the United Arab Emirates to 97% in Nigeria.

general information

OPEC countries meeting

Which states are included?

Oil production in Iran

• tourism;
• timber extraction;
• gas sales;
• sale of other raw materials.

Organization policy

Meeting of OPEC member countries

Attempts to resolve the situation

Falling oil prices

Price policy

Extraordinary meeting

OPEC meeting in Vienna

Finally

Trusteeship countries

The abbreviation OPEC stands for "Association of Petroleum Exporting Countries". The main goal organization was to regulate prices for black gold on the world market. The need to create such an organization was obvious. In the middle of the 20th century, oil prices began to fall due to market glut. The Middle East sold the most oil. It was there that the richest deposits of black gold were discovered.

In order to pursue a policy to maintain oil prices on a global scale, it was necessary to force oil-producing countries to reduce the rate of its production. This was the only way to remove excess hydrocarbons from the world market and raise prices. OPEC was created to solve this problem.

List of countries that are members of OPEC

Today, 14 countries take part in the organization’s work. Consultations between representatives of the organization are held twice a year at OPEC headquarters in Vienna. At such meetings, decisions are made to increase or decrease oil production quotas for individual countries or the entire OPEC.

Venezuela is considered the founder of OPEC, although this country is not a leader in oil production. The palm in terms of volumes belongs to Saudi Arabia, followed by Iran and Iraq. In total, OPEC controls about half of the world's black gold exports. In almost all member countries of the organization, the oil industry is the leading industry in the economy. Therefore, the decline in world oil prices causes swipe by income of OPEC members.

African countries that are part of OPEC

Of the 54 African states, only 6 are members of OPEC:

Most of the “African” OPEC participants joined the organization in the 1960-1970s. At that time, many African states freed themselves from the colonial rule of European countries and gained independence. The economy of these countries was focused mainly on the extraction of minerals and their subsequent export abroad. African countries are characterized by high populations but also high rates of poverty. To cover the costs of social programs the governments of these countries are forced to produce a lot of crude oil. In order to withstand competition from European and American oil-producing transnational corporations, African countries joined OPEC.

Asian countries included in OPEC

Political instability in the Middle East predetermined the entry of Iran, Saudi Arabia, Kuwait, Iraq, Qatar, and the United Arab Emirates. The organization's Asian member countries are characterized by low population density and huge foreign investment. Oil revenues are so enormous that Iran and Iraq paid for their military expenses in the 1980s by selling oil. Moreover, these countries fought against each other.

Today, political instability in the Middle East threatens not only the region itself, but also threatens world oil prices. It's going on in Iraq and Libya Civil War. The lifting of sanctions from Iran threatens to increase oil production in this country, despite the obvious exceeding of the OPEC oil production quota.

Latin American countries that are members of OPEC

Only two countries Latin America included in OPEC are Venezuela and Ecuador. Despite the fact that Venezuela is the country that initiated the founding of OPEC, the state itself is politically unstable. Recently (in 2017), a wave of anti-government protests swept across Venezuela due to the government’s ill-conceived economic policies. Behind Lately The country's public debt has increased significantly. For some time, the country kept afloat due to high oil prices. But as prices fell, the Venezuelan economy also collapsed.

Non-OPEC oil exporting countries

Recently, OPEC has lost its leverage over its members. This situation is largely due to the fact that several oil importing countries that are not members of OPEC have appeared on the world market.

First of all this:

Despite the fact that Russia is not a member of OPEC, it is a permanent observer in the organization. An increase in oil production by non-OPEC countries leads to a decrease in the price of oil on the world market. However, OPEC cannot influence them, since even members of the organization do not always comply with agreements and exceed permissible quotas.

Organization of Petroleum Exporting Countries (OPEC)

OPEC(transliteration of the English abbreviation OPEC - The Organization of Petroleum Exporting Countries, literally translated as the Organization of Petroleum Exporting Countries) is an international intergovernmental organization of oil-producing countries created to stabilize oil prices.

The organization was formed during an industry conference in Baghdad on September 10-14, 1960, on the initiative of five developing oil-producing countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Subsequently, several more countries joined them.

OPEC's goal is to coordinate activities and develop a common policy regarding oil production among the member countries of the organization, maintaining the stability of world oil prices, ensuring uninterrupted supplies of raw materials to consumers and obtaining returns from investments in the oil industry.

To more effectively calculate the cost of oil produced in the member countries of the organization, the so-called “ OPEC oil basket“—a certain set of types of oil produced in these countries. The price of this basket is calculated as the arithmetic average of the cost of the varieties included in it.

Composition of OPEC

Currently, the Organization of the Petroleum Exporting Countries includes the following 12 countries:

*Ecuador was not a member of the organization from 1992 to 2007.

At a certain period, the organization also included: Indonesia (joined in 1962, suspended membership in 2009) and Gabon (joined in 1975, left in 1995).

Background and history of creation

In the 1960s of the last century, some states, in particular those that later joined OPEC, gained their independence. At the time, global oil production was ruled by a seven-company cartel known as Seven sisters«:

At some point, this cartel decided to unilaterally reduce the purchase price of oil, resulting in a reduction in taxes and rents that they paid to countries for the right to develop oil fields on their territory. This event served as a catalyst for the establishment of OPEC, whose goal was to obtain new independent states control over its resources and their exploitation, taking into account national interests, as well as preventing a further fall in oil prices.

The organization began its activities in January 1961, creating the Secretariat of the organization in Geneva. In September 1965 he was moved to Vienna. In 1962, the Organization of the Petroleum Exporting Countries was registered with the UN Secretariat as a full-fledged intergovernmental organization.

In 1968, the Declaration “On the Oil Policy of OPEC Member Countries” was adopted, the content of which emphasized the inalienable right of the member countries of the organization to exercise permanent sovereignty over their own countries. natural resources in the interests of their national development.

During the 1970s, OPEC's influence on the world market not only grew, it became the most important organization, on whose policies crude oil prices began to depend. This state of affairs was facilitated, firstly, by the governments of states taking oil production on their territories under strict control, secondly, by the embargo on oil supplies by Arab countries in 1973, and thirdly, by the beginning of the Iranian revolution in 1979.

Countries that are part of OPEC

Last September, OPEC celebrated its anniversary. It was created in 1960. Today, OPEC countries occupy a leading position in the field of economic development.

general information

OPEC translated from English “OPEC” - “Organization of Petroleum Exporting Countries”. This international organization, created to control the volume of sales of crude oil and set the price for it.

By the time OPEC was created, there was a significant surplus of black gold in the oil market. The appearance of excess oil is explained by the rapid development of its vast deposits. The main supplier of oil was the Middle East. In the mid-50s of the twentieth century, the USSR entered the oil market. The volume of black gold production in our country has doubled.

The result of this was the emergence of serious competition in the market. Against this background, oil prices fell significantly. This contributed to the creation of OPEC. 55 years ago, this organization pursued the goal of maintaining an adequate level of oil prices.

OPEC countries meeting

Which states are included?

Today this organization includes 12 powers. These include states in the Middle East, Africa and Asia.

Russia is not a member of OPEC. Characterizing the powers that are part of this organization is not an easy matter. Only one thing can be said with confidence: just like 55 years ago, today the countries on the list are united by oil policy.

The initiator of the creation of this organization was Venezuela. Initially, the list included it, as well as the leading oil exporting states. After this, the list was replenished with Qatar and Indonesia. Libya was included in the list not during the time of Colonel Gaddafi, as many people think, but under King Idris, in 1962. The Emirates entered the list only in 1967.

In the period 1969-1973. the list was supplemented by such members as Algeria, Nigeria and Ecuador. In 1975, Gabon joined the list. In 2007, Angola joined the list. It is not known for certain whether OPEC will be added to the list in the near future.

Countries that are part of OPEC

What are countries?

The states that are part of this organization in 2018 produce only 44% of the world's oil production. But these countries have a huge influence on the black gold market. This is explained by the fact that the states that are part of this organization own 77% of all proven oil reserves throughout the world.

Saudi Arabia's economy is based on oil exports. Today, this black gold exporting state has 25% of oil reserves. Thanks to the export of black gold, the country receives 90% of its income. The GDP of this largest exporting state is 45 percent.

The second place in gold production is given to Iran. Today this state, a major oil exporter, occupies 5.5% of the world market. Kuwait should be considered an equally large exporter. The extraction of black gold brings the country 90% of its profits.

Oil production in Iran

Until 2011, Libya occupied an enviable place in oil production. Today the situation is this, there is no time richest state, can be called not just complex, but critical.

Iraq has the third largest oil reserves. The southern deposits of this country can produce up to 1.8 million black gold in just one day.

It can be concluded that most of the states that are members of OPEC are dependent on the profits that their oil industry brings. The only exception of these 12 states is Indonesia. This country also receives income from such industries as:

• tourism;
• timber extraction;
• gas sales;
• sale of other raw materials.

Indonesia as part of OPEC countries

For other powers that are part of OPEC, the percentage of dependence on the sale of black gold can range from 48 to 97 indicators.

When difficult times come, states with rich oil reserves have only one option - to diversify their economies as quickly as possible.

Organization policy

This happens due to the development of new technologies that help save resources.

In addition to the goal of unifying and coordinating oil policy, the organization has an equally priority task - to stimulate economical and regular supplies of goods by members to those states that are consumers. Another important goal is to achieve a fair return on capital. This is relevant for those who actively invest in industry.

The main governing bodies of OPEC include:

Meetings between energy ministers and black gold specialists take place twice a year. The main purpose of the meeting is to assess the state of the international oil market. Another priority is to develop a clear plan to stabilize the situation. The third purpose of the meeting is to forecast the situation.

Meeting of OPEC member countries

The organization’s forecast can be judged by the situation on the black gold market last year. Representatives of the member countries of this organization argued that prices would be maintained at $40-50 per barrel. At the same time, representatives of these states did not rule out that prices could rise to $60. This could only happen if China’s economy grew intensively.

Judging by latest information, in the plans of the management of this organization there is no desire to reduce the amount of oil products produced. Also, OPEC has no plans to interfere in the activities of international markets. According to the organization's management, it is necessary to give the international market a chance to regulate itself.

Today, oil prices are close to a critical point. But the market situation is such that prices can either rapidly fall or rise.

Attempts to resolve the situation

Falling oil prices

After the start of the next economic crisis, which swept the whole world, OPEC countries decided to meet in December 2015. Before this, 12 states met in June 2015, when there was a record drop in black gold futures. Then the size of the fall was catastrophic - up to 25 percent.

Judging by the forecast given by the organization’s experts at the end of 2015, the crisis will not affect only Qatar. In 2016, the price of Brent oil was about $60 per barrel.

Price policy

Today the situation for the OPEC participants themselves is as follows:

1. Iran - the price that ensures a deficit-free state budget is $87 (the share in the organization is 8.4%).
2. Iraq - $81 (share in the organization - 13%).
3. Kuwait - $67 (share in the organization - 8.7%).
4. Saudi Arabia - $106 (share in the organization - 32%).
5. UAE - $73 (share in the organization - 9.2%).
6. Venezuela - $125 (share in the organization - 7.8%).

According to some reports, at an informal meeting held in December 2015, Venezuela made a proposal to reduce current oil production to 5 percent. This information has not yet been confirmed.

Saudi Arabian Oil Minister Ali al-Naimi

The situation within the organization itself can be called critical. A year of significantly lower prices for black gold has hit the OPEC countries hard in the pocket. According to some estimates, the total income of member states could drop to $550 billion per year. The previous five-year plan showed much higher indicators. Then the annual income of these countries is 1 trillion. US dollars.

Extraordinary meeting

According to the Minister of Oil Industry of Iran, the existing problem can only be solved in the long term.

In February 2016, a decision was made to hold another meeting. The initiative was taken by six OPEC members:

The Russian Federation and Oman were also supposed to take part in the discussion. The objective of the extraordinary meeting was to conclude an agreement that would suit all participants of the 2016 meeting.

OPEC meeting in Vienna

One of largest exporters oil - Saudi Arabia - did not hide the fact that it was not going to discuss with the other OPEC members and “observers” a reduction in production. Iran also plans to significantly increase its production volumes. Today this state declares that its plans are to increase the volume to 500 thousand barrels/day.

On November 30, 2017, a new meeting of the member countries of the organization was held. Unfortunately, it was again impossible to accept the agreement. According to experts, the situation with oil prices in 2017 and 2018 will not stabilize.

Finally

OPEC headquarters building in Vienna

In 2018, members of the organization will adhere to the traditional course. Presumably, some restrictions are planned. But the hypothetical “sanctions” will most likely be symbolic. This is because countries will not comply with the proposed restrictions.

Which countries are part of OPEC?

OPEC headquarters.

OPEC countries - Algeria
Petroleum, crude oil and natural gas, manufactures

OPEC countries - Indonesia
Petroleum, tin, natural gas, nickel, timber, bauxite, copper, fertile soils, coal, gold, silver

OPEC countries - Iran
Petroleum, natural gas, carpets, iron and steel

OPEC countries - Iraq
Crude petroleum, oil commodities

OPEC countries - Kuwait
Petroleum, petroleum products, oil commodities

OPEC countries - Libya
Mineral fuels, crude oil

OPEC countries - Nigeria
Crude oil, petroleum products, oil commodities, heating oil

OPEC countries - Qatar
Crude oil, petroleum products, heating oil, oil commodities

OPEC countries - Saudi Arabia

OPEC countries - UAE
Crude oil and refined petroleum, oil commodities

OPEC countries - Venezuela
Mineral products (mainly petroleum and iron ore), petrochemicals

The Organization of the Petroleum Exporting Countries, abbreviated as OPEC, (English OPEC, The Organization of the Petroleum Exporting Countries) is an international intergovernmental organization created by oil-producing powers in order to stabilize oil prices. Members of this organization are countries whose economies largely depend on revenues from oil exports.

OPEC, as a permanent non-governmental organization, was created at a conference in Baghdad on September 10-14, 1960. Initially, the organization included Iran, Iraq, Kuwait, Saudi Arabia and Venezuela (the initiator of the creation). 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) , 2007), Gabon (1975-1994), Angola (2007).
Currently, OPEC has 13 members, taking into account the changes in composition that occurred in 2007: the emergence of a new member of the organization - Angola and the return of Ecuador to the fold of the organization.
OPEC headquarters.

OPEC's headquarters were initially located in Geneva (Switzerland), then moved to Vienna (Austria) on September 1, 1965.

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 international market oil 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).

O PEC translated from English is the organization of oil exporting countries. The purpose of creating OPEC was and is to control oil production quotas and prices. OPEC was created in September 1960 in Baghdad. The list of members changes periodically during the existence of the organization and as of 2018 (July) it includes 14 countries.

The initiators of the creation were 5 countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) year), Angola (2007) and Equatorial Guinea (2017).

As of today (February 2018), OPEC includes 14 countries:

1. Algeria
2. Angola
3. Venezuela
4. Gabon
5. Kuwait
6. Qatar
7. Libya
8. United Arab Emirates
9. Nigeria
10. Saudi Arabia
11. Equatorial Guinea
12. Ecuador

Russia is not a member of OPEC.

Countries included in the organization control 40% of all oil production on earth, that’s 2/3. The leader in oil production in the world is Russia, but it is not part of OPEC and cannot control the price of oil. Russia is an energy-dependent country.

The level of economic development and well-being of Russians depends on its sale. Therefore, in order not to depend on oil prices on the world market, Russia should develop other sectors of the economy.

So, several times a year the ministers of OPEC countries gather for meetings. They assess the state of the world oil market and predict the price. Depending on this, decisions are made to reduce or increase oil production.

We constantly see the abbreviation "OPEC" in the news, and it is not surprising - after all, this organization today provides significant influence on the formation of world prices for “black gold”. OPEC is the Organization of the Petroleum Exporting Countries (OPEC, The Organization of the Petroleum Exporting Countries), created in 1960. Its headquarters were originally located in Geneva, but were moved to Vienna in 1965.

By the time OPEC was founded, there was a significant surplus of oil on the market, the emergence of which was caused by the beginning of the development of giant oil fields - primarily in the Middle East. In addition, the market entered Soviet Union, where oil production doubled from 1955 to 1960. This abundance has caused severe competition in the market, leading to a constant decline in prices. The current situation was the reason for the unification of several oil exporting countries into OPEC in order to jointly resist transnational oil corporations and maintain the required price level.

Initially, the organization included Iran, Iraq, Saudi Arabia and Venezuela. They were then joined by Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola. Ecuador left OPEC in 1992 but returned in 2007. Gabon left the organization in 1994. As a result, today there are 13 countries in OPEC.

The organization officially sets itself the following main goals:

protect the interests of the organization’s member countries; guarantee stability of prices for oil and petroleum products; ensure regular supplies of oil to other countries; guarantee member countries of the organization a stable income from oil sales; determine strategies for oil production and sales.

In the first years of its existence, OPEC was unable to achieve its goals. But this changed in 1973, when Egyptian and Syrian troops attacked Israeli positions. In this war, called Yom Kippur, western world supported the Israeli side. In response, OPEC announced the first embargo limiting oil exports to countries Western Europe and the United States, which caused the first oil crisis in world history. In just six months, by the beginning of 1974, oil prices jumped by 130% and reached $7 per barrel, and by the end of 1979 they were already $18 per barrel. The crisis strengthened the organization’s position so much that the mid-70s became the “golden age” of OPEC. However, the West began to establish closer ties with the USSR, which was actively increasing oil supplies. In addition, international oil companies have shifted their attention to other important oil areas such as the North Sea and the Gulf of Mexico. The embargo also contributed to the start of development of the giant Prudhoe Bay field in Alaska, with initial oil reserves exceeding 1.3 billion tons (9.5 billion barrels).

Gradually, OPEC's position was weakened.

During the 1980s, the price of oil fell steadily. If in 1981 it reached $40 per barrel, then five years later its level approached $10 per barrel. Iraqi President Saddam Hussein called on OPEC to raise the selling price, which became the reason for the Gulf War in 1990-1991. The Iraqi invasion of Kuwait and the ensuing Persian crisis deprived OPEC of unity and affected oil prices, which rose to $30 per barrel. As soon as the fear of oil shortages caused by these military conflicts dissipated, prices plummeted downward. In 1998, OPEC countries lifted all restrictions on production and exports, which immediately affected the markets - prices again dropped below $10 per barrel.

To solve the problem, it was proposed to reduce the production of “black gold” - this initiative is attributed to Venezuelan President Hugo Chavez. In 2000, Chavez convened a summit of OPEC heads of state for the first time in 25 years. However, the terrorist attacks of September 11, 2001 in the United States, as well as the invasions of Afghanistan and Iraq, caused a sharp rise in oil prices, which allowed them to far exceed the levels that OPEC members wanted to achieve.

The energy and oil ministers of OPEC member states meet twice a year to assess the state of the international oil market and make decisions on necessary actions aimed at stabilizing the market and making forecasts for the future. Production volumes, which change in accordance with market demand dynamics, are adopted at OPEC conferences.

Today, the organization's members control approximately two-thirds of the planet's proven oil reserves. OPEC provides 40% of world production and half of world exports of this precious raw material. The organization coordinates oil production policy and world crude oil pricing, and also sets quotas for oil production volumes. And despite the popular belief that OPEC’s time has passed, it still remains one of the most influential global players in the oil industry, determining its further development.

OPEC is an organization of oil exporting countries (from the English OPEC, The Organization of the Petroleum Exporting Countries).

This structure is an international intergovernmental organization. It was created by states in which oil is produced in order to stabilize the price of oil. The organization includes states whose economies depend on profits from the export of “black gold”.

Creation of OPEC

To fight oil monopolies, developing countries that export oil decided that they needed to join forces and begin an active struggle. Thus, in 1960, the main exporters in Baghdad liquid fuel on the world market - Venezuela, Iraq, Iran, Kuwait and Saudi Arabia - became the founders of the Organization of Petroleum Exporting Countries (OPEC). OPEC registered with the United Nations on September 6, 1962 under UN Resolution No. 6363.
The formation of OPEC became possible thanks to the idea of ​​Venezuela, which at that time was the most developed of all oil-producing states. And it was in this country that oil monopolies were exploited for a long time. Awareness of the urgent need to coordinate efforts against oil monopolies also arose in the Middle East. This is evidenced by the Iraqi-Saudi agreement on the harmonization of Oil Policy, which was signed in 1953, as well as the meeting of the Arab League in 1959, which was dedicated oil problems. Representatives from Venezuela also attended this meeting.
The first charter was approved at the 2nd conference in Caracas on January 15-21, 1961. However, four years later the charter was completely revised. But even after this, numerous changes and additions were often made to the charter. Today, OPEC accounts for approximately 40% of global oil production. The first OPEC headquarters was located in Geneva (Switzerland), but later moved to Vienna (Austria).
Another impetus for the formation of the oil exporters' association was another drop in reference prices in 1959 by the International Petroleum Cartel, as well as the establishment of restrictions on oil imports into the United States.
Today, the OPEC organization consists of 14 countries: Algeria (since 1969), Indonesia (since 1962), Iraq (since 1960), Iran (since 1960), Kuwait (since 1960), Lebanon ( since 1962), Nigeria (since 1971), Qatar (since 1961), Saudi Arabia (since 1960), Angola, United Arab Emirates (since 1967) and Venezuela (since 1960) , Equatorial Guinea. Previously, Gabon and Ecuador belonged to OPEC, but they decided to end their membership in this organization. People often think that Russia is also a member of OPEC, but this is not true. Russia is not on the list of member states of the organization, but is required to attend all meetings of the organization.
Any state that exports a lot of oil and adheres to the same ideals that the organization follows can become a member of OPEC.

Why was OPEC created?

The main goals of creating such an organization include:

• coordination and unification of the oil policies of countries that are members of the organization
• identifying the most effective individual and collective methods of protecting the interests of such countries
• guarantee of a stable price for black gold on the global oil market
• stable incomes of oil producing states
• efficient, cost-effective and regular supply of consumer countries
• fair returns from investments in the oil industry
• environmental protection in the interests of living and future generations.

Organization structure

The Organization of Petroleum Exporting Countries has as the cartel's main governing body the Conference of Participating Countries, convened twice a year. The conference addresses the following issues:

• admission of new members
• formation of the composition of the Board of Governors
• budget volume and financial reporting
• elections of the Chairman of the Board of Governors, the Secretary General, as well as his deputies and auditor.

The Board of Governors develops issues for the Conference, manages the activities of the Secretariat, which is a permanent operating body. The Secretariat monitors and draws up initiatives for the Board of Governors and the Conference, monitors the implementation of approved resolutions, and draws up draft annual OPEC budgets.

In the early 80s, oil futures were introduced, as a result of which the financial market began to exert enormous pressure on the formation of the price of oil. It is worth noting that in 1983, oil futures positions for 1 billion barrels of oil appeared on the New York Mercantile Exchange, and in 2011 their number reached 365 billion barrels, which is 12 times the volume of global oil production in 2010.
OPEC members, in the process of adopting any resolutions on changing oil production quotas to adjust world prices, in reality only determine the desired direction for the movement of world prices. Participants in financial markets, especially “speculators,” provide active assistance and also use fluctuations in the price of oil for their own purposes, thereby significantly distorting the effect at which OPEC’s measures are aimed.

Russia and OPEC

In 1998, Russia became an observer in OPEC.

Since this year, Russian representatives have been taking part in sessions of the OPEC Conference. In addition, Russian experts attend meetings of specialists and other events of the organization together with representatives of states that are not members of it. Frequent meetings of Russian ministers are held with the leadership of OPEC and partners from OPEC countries.
Russia is the initiator of organizing a regular Russia-OPEC Energy Dialogue and signing an Agreement (Memorandum) on the Energy Dialogue. The authorized representative from Russia in this event is the Ministry of Energy of the Russian Federation.
Experts note Russia's significant influence on the organization's policies. As a result of fears that Russia will increase its volume in the market, OPEC does not want to reduce production unless Russia reduces it too. This situation is the main obstacle to the restoration of global oil prices. Two years ago, Russia was offered to become a member of OPEC, but refused.

oil production, OPEC, oil exports, oil exporters, oil cost, oil prices, OPEC

Heading:

The implementation of international commodity agreements regulating activities in certain market segments is carried out by the International commodity organizations(MTO) in the form:

• International organizations;
• International Councils;
• International Advisory Committees;
• International research groups(MOMENT).

All of these institutes are engaged in studying the state of world commodity markets, namely: the current relationship between supply and demand for specific raw materials, the dynamics of prices and conditions.

Currently there are International Councils for olive oil, tin, grain.

MIGs apply to rubber, lead and zinc, and copper.

There is an International Cotton Advisory Committee and a Tungsten Committee.

Iran has the second largest oil reserves after Saudi Arabia (18 billion tons) and occupies 5.5% of the global oil products trading market. Particular attention is paid to economic diversification through the development of precision engineering, automotive engineering, the rocket and space industry, and information technology.

A major oil exporter is Kuwait. Oil production provides 50% of Kuwait's GDP, its share in the country's exports is 90%. The country also has developed oil refining and petrochemicals, production of building materials, fertilizers, food industry, pearl mining. Desalination in progress sea ​​water. Fertilizers constitute an important part of the country's exports.

Iraq has the second largest oil reserves in the world. Iraqi state-owned companies North Oil Company and South Oil Company have a monopoly on the development of local oil fields. Iraq's southern fields, managed by SOC, produce about 1.8 million barrels of oil per day, accounting for almost 90% of all oil produced in Iraq.

Thus, Most OPEC countries are deeply dependent on the income of their oil industry. Perhaps the only exception among the member countries of the organization is Indonesia, which receives significant income from tourism, timber, gas and other raw materials. For the remaining OPEC countries, the level of dependence on oil exports ranges from a low of 48% in the case of the United Arab Emirates to 97% in Nigeria.

During a crisis, the strategic path for countries dependent on oil exports is to diversify their economies through the development of the latest resource-saving technologies.