International Relations Prelims cum Mains Summit & Organizations

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
    • 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.

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