Headline : Prelims Program: Organization of the Petroleum Exporting Countries (OPEC)
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
- Saudi Arabia
- 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.