UPSC Express

Headline : Prelims Program: Organization of the Petroleum Exporting Countries (OPEC)

Details :

About Organization of the Petroleum Exporting Countries (OPEC)

• OPEC is a permanent intergovernmental organization of 14 oil-exporting nations.
• It coordinates and unifies the petroleum policies of its Member Countries.
• The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, in 1960 by five countries (Founder Members of the Organization):
  • Islamic Republic of Iran
  • Iraq
  • Kuwait
  • Saudi Arabia
  • Venezuela
• The current OPEC members are the following:Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia (the de facto leader), United Arab Emirates, and
• The OPEC headquarters are located in Vienna, Austria.

OPEC: Global Scenario

• The formation of OPEC was the first step towards national sovereignty over natural resources.
• Over a period of time, the decisions of the organisation have played a prominent role in the global oil market.
• The influence of OPEC on international trade has been challenged by:
  • The expansion of non-OPEC energy sources
  • The climate change solutions
  • Shale gas resources by US
  • By the recurring temptation for individual OPEC countries to exceed production targets
• The mission of the Organization of the Petroleum Exporting Countries (OPEC) is to:
  • Coordinate and unify the petroleum policies of its Member Countries
  • Ensure the stabilization of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers
  • Steady income to producers
  • Fair return on capital for those investing in the petroleum industry

Note: OPEC has been in news recently and the related topics have been covered on portal.