Opec unites countries. What the Organization of the Petroleum Exporting Countries Does: The Role of OPEC in the Modern World

(The Organization of the Petroleum Exporting Countries, OPEC) - international organization set up to coordinate sales and pricing of crude oil.

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

OPEC as a permanent organization was established 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. The countries that founded the organization were later joined by nine more: Qatar (1961), Indonesia (1962-2009, 2016), Libya (1962), United United Arab Emirates(1967), Algeria (1969), Nigeria (1971), Ecuador (1973-1992, 2007), Gabon (1975-1995), Angola (2007).

Currently, OPEC has 13 members, taking into account the emergence of a new member of the organization - Angola and the return of Ecuador in 2007 and the return of Indonesia from January 1, 2016.

The goal of OPEC is to coordinate and unify the oil policies of member countries in order to ensure fair and stable prices for oil producers, efficient, economical and regular supplies of oil to consumer countries, as well as a fair return on capital for investors.

The organs of OPEC are the Conference, the Board of Governors and the Secretariat.

The supreme body of OPEC is the Conference of Member States, convened twice a year. It determines the main activities of OPEC, decides on the admission of new members, approves the composition of the Board of Governors, considers reports and recommendations of the Board of Governors, approves the budget and financial report, and adopts amendments to the OPEC Charter.

The executive body of OPEC is the Board of Governors, formed from governors who are appointed by states and approved by the Conference. This body is responsible for directing the activities of OPEC and for implementing the decisions of the Conference. Meetings of the Board of Governors are held at least twice a year.

The secretariat is headed by the Secretary General, who is appointed by the Conference for a term of three years. This body exercises its functions under the direction of the Board of Governors. It ensures the work of the Conference and the Board of Governors, prepares messages and strategic data, disseminates information about OPEC.

Supreme Administrative official OPEC is the Secretary General.

OPEC Acting Secretary General Abdullah Salem al-Badri.

The headquarters of OPEC is located in Vienna (Austria).

According to current estimates, more than 80% of the world's proven oil reserves are in OPEC member countries, with 66% of general reserves OPEC countries are concentrated in the Middle East.

The proven oil reserves of the OPEC countries are estimated at 1.206 trillion barrels.

As of March 2016, OPEC oil production has reached 32.251 million barrels per day. Thus, OPEC exceeds its own production quota, which is 30 million barrels per day.

general information

OPEC countries meeting

Which states are included

Oil production in Iran

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

Organization policy

OPEC meeting

Attempts to resolve the situation

Falling oil prices

Price policy

Extraordinary meeting

OPEC meeting in Vienna

Finally

Trusted countries

The abbreviation OPEC stands for "Association of Petroleum Exporting Countries". The main purpose of the organization was to regulate the prices of black gold on the world market. The need for such an organization was obvious. In the middle of the 20th century, oil prices began to fall due to a glut of the market. 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 keep oil prices on a global scale, it was necessary to force the 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. To solve this problem, OPEC was created.

List of countries that are members of OPEC

Today, 14 countries participate in the work of the organization. Twice a year, consultations between representatives of the organization are held at the OPEC headquarters in Vienna. At such meetings, decisions are made to increase or decrease the oil production quotas of 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 volume belongs to Saudi Arabia followed by Iran and Iraq. All in all, 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 one in the economy. Therefore, the decline in world oil prices deals a strong blow to the income of OPEC members.

African countries that are members of OPEC

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

Most of the "African" members of OPEC joined the organization in 1960-1970. At that time, many African states liberated themselves from colonial rule. 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 a high population, but also a high percentage of poverty. To cover the costs of social programs, the governments of these countries are forced to extract a lot of crude oil. In order to withstand competition from European and American oil-producing transnational corporations, African countries joined OPEC.

Asian countries that are members of OPEC

Political instability in the Middle East predetermined the entry of Iran, Saudi Arabia, Kuwait, Iraq, Qatar, and the United Arab Emirates. The Asian member countries of the organization are characterized by low population density and huge foreign investment. Oil revenues are so huge 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. There is a civil war going on in Iraq and Libya. The lifting of sanctions against Iran threatens to increase oil production in this country, despite the obvious excess of the OPEC quota for oil production.

Latin American countries that are members of OPEC

Only two countries Latin America OPEC members are Venezuela and Ecuador. Despite the fact that Venezuela is the initiator of the founding of OPEC, the state itself is politically unstable. Recently (in 2017), a wave of anti-government protests swept through Venezuela related to the ill-conceived economic policy of the government. Per recent times The country's public debt has grown significantly. For some time the country kept afloat due to high oil prices. But as prices plummeted, so did the Venezuelan economy.

Non-OPEC Oil Exporting Countries

Recently, OPEC has lost the levers of pressure on 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 it is:

Despite the fact that Russia is not a member of OPEC, it is a permanent observer in the organization. The increase in oil production by non-OPEC countries leads to a decrease in the cost of oil on the world market. However, OPEC cannot influence them, since even the members of the organization do not always comply with the agreements and exceed the allowable 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, at the initiative of five developing oil-producing countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. In the future, several other countries joined them.

OPEC's goal is the coordination of activities and the development of 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 a return on investment in the oil industry.

For a more efficient calculation of the cost of oil produced in the member countries of the organization, the so-called " OPEC oil basket» - a certain set of grades 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

The Organization of the Petroleum Exporting Countries is currently composed of the following 12 countries:

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

In 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 lower 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, the purpose of which was to obtain new independent states control over their resources and their exploitation, taking into account national interests, as well as preventing a further fall in oil prices.

The organization began its activity in January 1961, having created the Secretariat of the organization in Geneva. In September 1965 he was transferred 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 Petroleum Policy of the 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 natural resources in the interests of their national development.

During the 1970s, OPEC's influence on the world market not only grew, but 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 tight control, secondly, by the embargo on the supply of oil by Arab countries in 1973, and, thirdly, by the beginning of the Iranian revolution in 1979.

Countries that are members of OPEC

In September last year, the OPEC organization celebrated its anniversary. It was established in 1960. Today, OPEC countries occupy a leading position in the field of economic development.

general information

OPEC in translation from English "OPEC" - "Organization of Petroleum Exporting Countries". This is an international organization created to control the volume of sales of crude oil and the setting of its price.

By the time OPEC was created, there were significant surpluses of black gold in the oil market. The appearance of an excess amount of oil is explained by the rapid development of its vast deposits. The main supplier of oil was the Middle East. In the mid-1950s, the USSR entered the oil market. The production of black gold in our country has doubled.

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

OPEC countries meeting

Which states are included

To date, this organization includes 12 powers. These include the states of the Middle East, Africa and Asia.

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

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

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

Countries that are members of OPEC

What are the 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 impact 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 in 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 mining is given to Iran. Today, this state, which is a major oil exporter, occupies 5.5% of the world market. Kuwait should be considered no less a major exporter. The extraction of black gold brings the country 90% of the profit.

Oil production in Iran

Until 2011, Libya occupied an enviable place in oil production. Today, the situation in this once richest state can be called not just difficult, 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 one day alone.

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

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

Indonesia as part of the 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, the states with rich oil reserves have only one way out - to diversify the economy as soon as possible. This happens due to the development of new technologies that contribute to the conservation of resources.

Organization policy

In addition to the goal of unifying and coordinating oil policy, the organization has a no less priority task - to consider the stimulation of economical and regular deliveries of goods by members of those states that are consumers. Another important goal is to obtain a fair return on capital. This is true for those who actively invest in the industry.

The main governing bodies of OPEC include:

The conference is supreme body this organization. The highest position should be considered the position of General Secretary.

Meetings of 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 task is to develop a clear plan to stabilize the situation. The third purpose of the meeting is to predict the situation.

OPEC meeting

The forecast of the organization 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 kept at the rate of 40-50 US dollars per 1 barrel. At the same time, representatives of these states did not rule out that prices could rise up to $60. This could happen only in the event of an intensive growth of the Chinese economy.

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

Today, oil prices are close to the critical point. But the situation on the market is such that prices can both rapidly fall and rise.

Attempts to resolve the situation

Falling oil prices

After the start of another economic crisis that swept the whole world, the OPEC countries decided to meet in December 2015. Prior to 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, which at the end of 2015 was given by the experts of the organization, the crisis will not affect only Qatar. In 2016, the price of Brent crude was about $60 per barrel.

Price policy

Today, the situation for the OPEC members themselves is as follows:

1. Iran - the price by which a deficit-free budget of the state is provided - 87 US dollars (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 the current volume of oil production to 5 percent. This information has not yet been confirmed.

Saudi Oil Minister Ali al-Naimi

The situation within the organization itself can be called critical. The year of black gold that has fallen in price has hit hard on the pockets of the OPEC states. According to some reports, the total income of the participating states may drop to 550 billion US dollars a year. The previous five-year plan showed much higher rates. Then the annual income of these countries is 1 trillion. USD.

Extraordinary meeting

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

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

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

OPEC meeting in Vienna

One of the largest oil exporters - Saudi Arabia - did not hide the fact that it was not going to discuss with the rest of the OPEC members and "observers" a decrease in production. Iran also plans to significantly increase its production volumes. Today, this state says that it plans 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 not possible to accept the agreement again. According to experts, the situation with oil prices in 2017 and 2018 will not stabilize.

Finally

OPEC headquarters building in Vienna

In 2018, the members of the organization will stick to the traditional course. There are supposed to be some restrictions. But the hypothetical "sanctions" are likely to be symbolic. This is because countries will not comply with the proposed restrictions.

Which countries are members 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 economy largely depends on income from oil exports.

OPEC as a permanent non-governmental organization was established 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 the composition that occurred in 2007: the emergence of a new member of the organization - Angola and the return to the bosom of the organization of Ecuador.
OPEC headquarters.

The headquarters of OPEC was originally located in Geneva (Switzerland), then on September 1, 1965 moved to Vienna (Austria).

The purpose of OPEC is to coordinate activities and develop a common policy regarding oil production among the member countries of the organization, maintain stable oil prices, ensure stable oil supplies to consumers, and obtain a return on investment in the oil industry.

Energy and oil ministers of the 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 to be taken to stabilize the market. Decisions on changes in oil production 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. The peak of oil has not yet been passed only by the OPEC countries and Russia (from large exporters).

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) to coordinate sales and pricing of crude oil.

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

Brief economic characteristics of the OPEC member states (in 2005)

Main objectives of OPEC

The main objectives of the creation of the Organization are:

• Coordination and unification of the oil policy of the Member States.
• Determination of 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 of oil-producing countries; efficient, cost-effective and regular supply of consumer countries; fair returns on investments in the oil industry; protection environment for the benefit of present and future generations.
• cooperation with non-OPEC countries in order to implement initiatives to stabilize the world 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 significant amounts of crude oil and has interests fundamentally similar to those of member countries can become a full member, provided that its admission is approved by a 3/4 majority vote, including the votes of all founding members.

Organizational structure of OPEC

The supreme body of OPEC is the Conference of Ministers of the member states, there is also a Board of Directors, in which each country is represented by one delegate. She, as a rule, attracts the closest attention not only of the press, but also key players in the global oil market. The conference determines the main directions of OPEC policy, ways and means of their practical implementation, and decides on reports and recommendations submitted by the Board of Governors, as well as on the budget. It entrusts the Council with the preparation of reports and recommendations on any matter of interest to the organization. The conference itself forms the Board of Governors (one representative from the country, as a rule, these are the ministers of oil, mining or energy). She chooses the president and appoints the general secretary of the organization.

The Secretariat carries out its functions under the direction of the Board of Governors. The Secretary General is the highest official of the Organization, authorized representative OPEC and the 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 a primary global energy source in line with OPEC's objectives, closely monitors changes in energy markets and informs the Conference of these changes. .

History of development and activity of OPEC

The task of OPEC since the 1960s has been to represent a common position of 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. The war between Egypt and Syria, on the one hand, and Israel, on the other, which suddenly began in October 1973, made significant adjustments to the balance of power. With the support of the United States, Israel managed to quickly regain the lost territories and 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 by 70% selling prices for the Western European allies of the United States. Overnight, a barrel of oil rose 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 already about 85% of American citizens were accustomed to getting to work in their own car. Although President Nixon imposed severe restrictions on the use of energy resources, the situation could not be saved, and a period of economic recession began for Western countries. At the peak of the crisis, the price of a gallon of gasoline in the US rose from 30 cents to $1.2.

Wall Street's reaction was immediate. Naturally, on the wave of super profits, the shares of oil companies went up, but all other shares lost an average of 15% between October 17 and the end of November 1973. The Dow Jones index during this time fell from 962 to 822 points. In March 1974, the embargo against the United States was lifted, but the effect that it produced could not be smoothed out. In two years, from January 11, 1973 to December 6, 1974, the Dow fell by almost 45% - from 1051 to 577 points.

Revenues from the sale of oil for the main Arab countries-producers of oil in 1973-1978. grew at an unprecedented pace. For example, the revenues of Saudi Arabia grew 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 OPEC Fund for International Development, a multilateral development finance institution. Its headquarters is 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 (on concessional terms) of three types: for projects, programs and support of the balance of payments. Resources consist of voluntary contributions from member countries and profits generated from the fund's investment and lending operations.

However, by the end of the 1970s, oil consumption began to decline for a variety of reasons. First, non-OPEC countries have increased their activity in the oil market. Secondly, a general decline in the economies of Western countries began to manifest itself. Thirdly, 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 in the event of a repeat of the situation with oil supplies to use military force. Ultimately, oil prices began to decline.

Despite all the measures taken, in 1978 a second oil crisis erupted. The main reasons were the revolution in Iran and the political resonance caused by the agreements at Camp David between Israel and Egypt. By 1981, the price of oil had reached $40 per barrel.

The weakness of OPEC was fully manifested in the early 1980s, when, as a result of the full development of new oil fields outside the OPEC countries, the widespread introduction of energy-saving technologies and economic stagnation, the demand for imported oil in industrialized countries fell sharply, and prices fell by almost half. After that, 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 - up 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 more than doubled in price - from 27 to 12 dollars per barrel.

The fourth oil crisis erupted in 1990. On August 2, Iraq attacked Kuwait, prices jumped from $19 a barrel in July to $36 in October. However, then oil fell to its previous level even before the start of Operation Desert Storm, which ended in the military defeat of Iraq and the economic blockade of the country. Despite persistent overproduction of oil 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 different reasons for this sharp drop in oil prices. Many tend to place all the blame on the decision of OPEC, adopted at the end of November 1997 in Jakarta (Indonesia), to raise the ceiling on oil production, as a result of which additional volumes of oil were supposedly thrown onto the markets and prices fell. The efforts made by OPEC members and non-members in 1998 undoubtedly played a major role in preventing a further collapse of the world oil market. Without the measures taken, the price of oil, according to some experts, could fall to 6-7 dollars per barrel.

Development problems of OPEC countries

One of the main shortcomings of OPEC is that it brings together countries whose interests are often opposed. Saudi Arabia and other countries on the Arabian Peninsula are sparsely populated but have huge oil reserves, large foreign investments, and very close relationships with Western oil companies.

Other OPEC countries, such as Nigeria, are characterized by high population and poverty, they pursue costly economic development programs and are heavily indebted.

The second seemingly simple problem is the banal "what to do with money." After all, it is not always easy to properly dispose of the downpour of petrodollars that has poured into the country. The monarchs and rulers of the countries that were overwhelmed with wealth sought to use it "for the glory of their own people" and therefore started various "constructions 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 passed, when the ardor cooled a little due to the fall in oil prices and the decline in government revenues, did the state budget funds begin to be spent more reasonably and competently.

third, main problem is to compensate for the technological backwardness of the OPEC countries from the leading countries of the world. Indeed, by the time the organization was created, some of the countries included in its composition had not yet got 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, the life of people did not pass without a trace for the people. The main stages of industrialization were the nationalization of some foreign companies, such as ARAMCO in Saudi Arabia, and the active attraction of private capital into the industry. This was carried out through comprehensive state assistance to the private sector of the economy. For example, in the same Arabia, 6 special banks and funds were created, which provided assistance to entrepreneurs under state guarantees.

The fourth problem is the insufficient qualification of national personnel. The fact is that workers in the state turned out to be unprepared for the introduction of new technologies and were unable to maintain modern machine tools and equipment that was supplied to oil producing and processing enterprises, as well as other plants and enterprises. The solution to this problem was the involvement of foreign specialists. It wasn't as easy as it seems. Because soon it gave rise to a lot of contradictions, which all intensified with the development of society.

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

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 economy largely depends on income from oil exports. The main goal of the organization is to control world oil prices.

OPEC was formed international conference September 10-14, 1960 in Baghdad (Iraq). Initially, this organization included five countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Eight new members were admitted between 1960 and 1975: Qatar, Indonesia, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador and Gabon. In December 1992, Ecuador withdrew from OPEC, and in January 1995, Gabon was excluded from it.

OPEC as a permanent non-governmental organization was established at a conference in Baghdad (Iraq) 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 included British Petroleum, Chevron, Exxon, Gulf, Mobil, Royal Dutch/Shell and Texaco and controlled the processing of crude oil and the sale of petroleum products around the world, unilaterally reduced purchase prices for oil, on the basis of which they paid taxes and interest for the right to develop natural resources 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 subjected to the exploitation of oil monopolies. Understanding the need to coordinate efforts against the oil monopolies was also brewing in the Middle East. This was evidenced by the Iraqi-Saudi agreement on the coordination of the Oil Policy in 1953 and the meeting of the Arab League in 1959, devoted to oil problems, which was attended by representatives of Iran and Venezuela.

The immediate impetus for the founding of the Petroleum Exporters' Association was another reduction in reference prices in 1959 by the International Petroleum Cartel, as well as restrictions on US oil imports.

The headquarters of OPEC was originally located in Geneva (Switzerland), then on September 1, 1965 moved to Vienna (Austria).

The main objectives of the creation of the Organization are:

• 1) coordination and unification of the oil policy of the Member States;
• 2) determination of 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 for security: exporter oil Russia energy supply
• · sustainable income of oil-producing countries;
• · efficient, cost-effective and regular supply of consumer countries;
• · Fair income from investments in the oil industry;
• · protection of the environment for the benefit 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 fact, OPEC laid the foundation for interstate regulation in the energy sector in relation to the world 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 significant amounts of crude oil and has interests fundamentally similar to those of member countries can become a full member, provided that its admission is approved by a 3/4 majority vote, including the votes of all founding members.

Energy and oil ministers of the 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 to be taken to stabilize the market. Decisions on changes in oil production 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. The peak of oil has not yet been passed only by the OPEC countries and Russia (from large exporters).

Major oil exporters such as Brunei, Great Britain, Mexico, Norway, Oman and the Soviet Union, and then Russia, have never been members of OPEC.

One of the tasks of OPEC is to present a unified position of oil-producing countries in 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 rising inflation and a shortage of raw materials. The problem of lack of oil has declared itself. For example, the US was forced to import about 35% of petroleum products. At this time, OPEC began to defend its positions regarding the principles of profit sharing in the oil market.

In October 1973, the Organization imposed an oil embargo on 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 1970s, oil consumption began to decline for a number of reasons: the activity of non-OPEC countries increased in the oil market; a general decline in the economies of Western countries began to manifest itself; 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 price of almost all goods and services. In 1974, the consumer price index rose by 11%, so that in 1975 President Ford was forced to adopt an inflation control program.

Revenues from the sale of oil for the main Arab oil-producing countries in 1973-1978. grew at an unprecedented rate. For example, the revenues of Saudi Arabia grew 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 1970s, oil consumption began to decline for a variety of reasons. First, non-OPEC countries have increased their activity in the oil market. Secondly, a general decline in the economies of Western countries began to manifest itself. Thirdly, efforts to reduce energy consumption have borne some fruit. In addition, the United States, concerned about possible shocks in oil-producing countries by the high activity of the USSR in the region, especially after the introduction of Soviet troops into Afghanistan, was ready to use military force in the event of a repetition of the situation with oil supplies. Ultimately, oil prices began to decline.

After the 1973 embargo, Kissinger and Nixon began looking for a partner in the Middle East. Their choice fell on Iran, which did not take part in the embargo against the United States. Iran allowed ships to be refueled in its ports and supported the US position towards the USSR. Nevertheless, despite all the measures taken, in 1978 a second oil crisis erupted. The main reasons were the revolution in Iran and the political resonance caused by the agreements at Camp David between Israel and Egypt. By 1981, the price of oil had reached $40 per barrel.

Ultimately, market forces, the active development of energy conservation programs in Western countries and disagreements among OPEC members led to lower oil prices. Since 1981, the price of oil has been falling smoothly, until recently. And although until quite recently it seemed that the level of 1981 was unlikely to be reached in the foreseeable future, the situation not only worsened, it got out of control. It seems that the necessary lessons from the past have not been learned.

The weakness of OPEC was fully manifested in the early 1980s, when, as a result of the full development of new oil fields outside the OPEC countries, the widespread introduction of energy-saving technologies and economic stagnation, the demand for imported oil in industrialized countries fell sharply, and prices fell by almost half.

The main disadvantage of OPEC is that it brings together countries whose interests are often opposed.

Saudi Arabia and other countries on the Arabian Peninsula are sparsely populated but have huge oil reserves, large foreign investments, and very close relationships with Western oil companies.

Other OPEC countries, such as Nigeria, are characterized by high population and poverty, they pursue costly economic development programs and are heavily indebted. These countries are forced to extract and sell as much oil as possible.

OPEC countries belong to different groupings. The radical grouping 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 a moderate policy. The countries - oil exporters realized that by regulating production volumes they could control oil prices, but the countries - importers of oil, and in a number of cases, oil monopolies did everything not to let OPEC contain the growth of oil supply. In their pressure on OPEC, the oil-importing countries, and primarily the United States, have used and continue to use objective differences between the OPEC member countries on the issue of expanding oil production. Many researchers emphasize the desire of the United States to break the unity of the oil-producing countries, to exclude the possibility of their joint actions. American capital, by hook or by crook, sought to strengthen its positions in some oil-producing countries.

In the media every now and then there is such an abbreviation as OPEC. The goals of this organization are to regulate the black gold market. The structure is quite an important player on the world stage. But is everything really so rosy? Some experts are of the opinion that it is OPEC members that control the situation on the “black gold” market. However, others believe that the organization is only a cover and a "doll", which, by manipulating more powerful powers, only strengthens its power.

Common Facts

It is the Organization of the Petroleum Exporting Countries that has the designation OPEC. A more accurate decoding of the name of this structure in English language sounds like Organization of Petroleum Exporting Countries. The essence of the activity of the structure lies in the fact that it allows states where the fundamental sector of the economy is the extraction of black gold to influence the market of petroleum products. That is, one of the main tasks of the organization is to establish the cost per barrel, which is beneficial to large market players.

Association members

On the this moment Thirteen countries are members of OPEC. They have only one thing in common - the presence of deposits of flammable liquid. The main members of the organization are Iran, Iraq, Qatar, Venezuela and Saudi Arabia. The latter has the greatest authority and influence in the community. Among the Latin American powers, the representative of this structure, in addition to Venezuela, is Ecuador. The hottest continent included the following OPEC countries:

• Algeria;
• Nigeria;
• Angola;
• Libya.

Over time, a couple more Middle Eastern states, such as Kuwait and the United Arab Emirates, have also joined. However, despite this geography, the OPEC countries have organized their headquarters in Vienna, the capital of Austria. Today, these oil exporters control forty percent of the total market.

Historical background

The history of the creation of OPEC begins with a meeting of world leaders in the export of black gold. These were five states. The place of their meeting was the capital of one of the powers - Baghdad. What prompted the countries to unite can be explained very simply. One of the factors influencing this process is the phenomenon of decolonization. Just at the time when the process was actively developing, the countries decided to get together. It happened in September 1960.

The meeting discussed ways to get out of the control of global corporations. At that time, many lands that were dependent on the metropolises began to be liberated. Now they could set the direction of the political regime and the economy on their own. Freedom of decision - that's what the future members of OPEC wanted to achieve. The goals of the nascent organization included stabilizing the cost of a combustible substance and organizing its own zone of influence in this market.

At that time, Western companies occupied the most authoritative positions in the black gold market. These are Exxon, Chevron, Mobil. It was these major corporations who proposed to lower the price per barrel by an order of magnitude. They explained this by the totality of costs affecting the oil rent. But since in those years the world did not particularly need oil, demand was lower than supply. The powers, from the union of which the organization of oil exporting countries would soon emerge, simply could not allow the implementation of this proposal.

Growing sphere of influence

First of all, it was necessary to settle all the formalities and organize the work of the structure according to the model. The first headquarters of OPEC was in the capital of Switzerland - Geneva. But five years after the founding of the organization, the Secretariat was moved to Austrian Vienna. Over the next three years, provisions were developed and formed that reflected the rights of OPEC members. All these principles were combined into a Declaration, which was adopted at the meeting. The main essence of the document is a detailed explanation of the possibilities of states in terms of control of national natural resources. The organization gained wide publicity. This attracted the entry of new members into the structure, which were Qatar, Libya, Indonesia and the United Arab Emirates. Later, another major oil exporter, Algeria, became interested in the organization.

The headquarters of OPEC transferred the right to control over production to the governments of the countries included in the structure. This was the right move and led to the fact that in the seventies of the last century, OPEC's influence on the world black gold market was very large. This is confirmed by the fact that the price per barrel of this combustible substance directly depended on the decision of this organization.

In the seventy-sixth year, the work of OPEC acquired new tasks. The goals have received a new direction - it is an orientation towards international development. The latter decision led to the emergence of the OPEC Fund. The policy of the organization has acquired a somewhat updated look. This led to the fact that several more states became willing to join OPEC - African Nigeria, Gabon and Latin American Ecuador.

The eighties brought destabilization to the work of the organization. This is due to falling prices for black gold, despite the fact that before that it reached its maximum levels. This led to the fact that the share of OPEC member countries in the world market decreased. According to analysts, this process has led to a deterioration in the economic situation in these states, since this sector is based on the sale of this fuel.

The nineties

In the early 1990s, the situation reversed. The cost of a barrel has increased, and the organization's share in the global segment has also expanded. But there were reasons for this too. These include:

• introduction of a new component of economic policy - quotas;
• new pricing methodology - "OPEC basket".

However, even this improvement did not satisfy the members of the organization. According to their forecasts, the rise in prices for black gold should have been an order of magnitude higher. An obstacle to what was expected was the unstable economic situation in the countries of Southeast Asia. The crisis lasted from 1998 to 1999.

But at the same time, the development of the industrial sector has become a significant advantage for the states that exported oil. A huge number of new industries appeared in the world, the resources of which were precisely this combustible substance. Conditions for the rise in the price of a barrel of oil were also created by intensive globalization processes and energy-intensive businesses.

Some changes were also planned in the structure of the organization. In place of Gabon and suspended its work in the structure of Ecuador came Russian Federation. The observer status for this largest exporter of black gold has become a significant plus for the authority of the organization.

new millennium

The new millennium for OPEC was marked by constant fluctuations in the economy and crisis processes. Oil in price either fell to a minimum level, or soared to sky-high figures. At first, the situation was quite stable, there was a smooth positive dynamics. In 2008, the organization updated its composition, and Angola accepted membership in it. But in the same year, the crisis factors sharply worsened the situation. This was manifested in the fact that the price per barrel of oil fell to the level of the year 2000.

In the next two years, the cost of black gold leveled off a bit. It has become as comfortable as possible for both exporters and buyers. In 2014, the newly activated crisis processes lowered the cost of a combustible substance to a value that was at zero. But, in spite of everything, OPEC is steadfastly experiencing all the difficulties of the world economy and continues to influence the energy resources market.

Basic goals

Why was OPEC created? The goals of the organization are to maintain and increase the current share in the global market. In addition, structure has an impact on pricing. In general, these tasks of OPEC were established during the creation of the organization and there were no significant changes in the direction of activity. The same tasks can be called the mission of this association.

OPEC's current goals are as follows:

• improvement of technical conditions to facilitate the extraction and transportation of black gold;
• expedient and effective investment of dividends received from the sale of oil.

The role of the organization in the global community

The structure is registered with the United Nations under the status of an intergovernmental organization. It was the UN that formed some of the functions of OPEC. The association has its say in solving some issues related to the world economy, trade and society.

An annual meeting is held at which representatives from the governments of the oil exporting countries discuss the future direction of work and the strategy of activity in the world market.

Now the states that are members of the organization are engaged in the extraction of sixty percent of the total volume of oil. According to analysts' calculations, this is not the maximum level they can reach. Only Venezuela develops its storage facilities and sells its reserves to the full. However, the association still cannot reach a consensus on this matter. Some believe that it is necessary to extract the maximum possible in order to prevent the increase in the influence of the United States in the world energy market. According to others, the increase in production only leads to an increase in supply. In this case, a decrease in demand will lead to a decrease in prices for this combustible substance.

Organization structure

The main person of the organization is OPEC Secretary General Mohammed Barkindo. For everything that the Conference of the States Parties decides, it is this person who is responsible. At the same time, the Conference, convened twice a year, is the leading governing body. During their meetings, the members of the association deal with the following issues:

• consideration of a new composition of participants - the granting of membership to any country is discussed jointly;
• personnel changes;
• financial moments - budgeting.

The above problems are being addressed specialized body which is called the Board of Governors. In addition to it, departments occupy their place in the structure of the organization, each of which studies a certain range of topics.

An important concept in the organization of the work of OPEC is also the "price basket". It is this definition that plays a key role in pricing policy. The meaning of the "basket" is very simple - it is an average value between the cost of a combustible substance of various brands. The brand of oil is set depending on the producing country and grade. Fuel is divided into "light" and "heavy".

Quotas are also a lever of influence on the market. What are they? These are restrictions on the extraction of black gold per day. For example, if quotas are reduced, there is a deficit. Demand starts to outstrip supply. Accordingly, due to this, the price of a combustible substance can be increased.

Prospects for further development

Just how many countries are in OPEC now does not mean that this composition is final. The abbreviation fully explains the goals and objectives of the organization. Many other states want to follow the same policy and are waiting for approval for membership.

Modern analysts believe that soon not only the oil exporting countries will dictate the conditions in the energy market. Most likely, black gold importers will set the direction in the future.

The development of national economies will determine how comfortable the conditions for imports will be. That is, if the industrial sector is developed in the states, this will cause the stabilization of prices for black gold. But in the event that production requires excessive fuel consumption, there will be a gradual transition to alternative sources energy. Some businesses may simply be liquidated. This will cause a decrease in the price of a barrel of oil. So, we can conclude that the most reasonable solution is to find a compromise between protecting their own national interests and oil-exporting countries.

Other experts consider such a situation that there will be no substitute product for this combustible substance. This will significantly strengthen the influence of exporting countries on the world stage. So, even despite the crisis and inflationary processes, the decline in prices will not be particularly significant. While some deposits are being developed rather slowly, demand will always exceed supply. This will also help these powers to enjoy greater prestige in the political sphere.

Problem moments

The main problem of the organization is the difference in the position of the participating countries. For example, Saudi Arabia (OPEC) has a low population density and at the same time huge deposits of "black gold". Also, a feature of the country's economy is investment from other states. Saudi Arabia has established partnerships with Western companies. In contrast, there are countries that have a fairly large number of inhabitants, but at the same time a low level of economic development. And since any energy-related project requires large investments, the state is constantly in debt.

Another problem is that the profit received from the sale of black gold must be properly distributed. In the first years after the formation of OPEC, members of the organization spent finances right and left, boasting of their wealth. Now it is considered bad form, so the funds have become more wisely spent.

Another point that some countries are struggling with and which is one of the main tasks at the moment is technical backwardness. In some states, there are still remnants of the feudal system. Industrialization should provide big influence not only on the development of the energy industry, but also on the quality of life of people. Many enterprises in this sector lack qualified workers.

But main feature of all OPEC member countries, as well as the problem is their dependence on the extraction of black gold.