Description: War Thunder is a next generation military MMO game dedicated to...
Details Organizations
(transliteration of the English abbreviation OPEC - The Organization of Petroleum Exporting Countries, in literal translation - the Organization of Petroleum Exporting Countries) is an international intergovernmental organization of oil-producing countries, created to stabilize oil prices.
Organization of Petroleum Exporting Countries
Foundation date
Date of commencement of activity
Headquarters location
Vienna, Austria
General Secretary
Mohammad Sanusi Barkindo
Official site
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.
The impact of OPEC on the oil market
According to the International Energy Agency (IEA), OPEC countries account for more than 40% of world oil production and about 60% of the total volume of oil traded on the international market.
The price of oil is dictated primarily by the balance of supply and demand. And the offer, as you can see from the above statistics, is determined by the actions of OPEC. It is for this reason that the Organization of the Petroleum Exporting Countries plays an extremely important role in the oil industry.
Even though many experts in recent times see a decrease in the influence of OPEC on the oil market, however, oil prices are still largely dependent on the actions of the organization. History knows many examples when market instability was generated by simple rumors related to the actions of the organization, or a statement by one of the members of the OPEC delegation.
OPEC's main tool for regulating oil prices is the introduction of so-called production quotas among the members of the organization.
OPEC quotas
OPEC quota- the limiting volume of oil production established at the general meeting both for the entire organization as a whole and for each individual OPEC member country.
The reduction in the overall level of cartel production by distributing the production of oil from OPEC countries quite logically leads to an increase in quotations by black gold. With the abolition of quotas (this has happened in the history of the oil industry), oil prices have fallen significantly.
The system of setting quotas or "production ceiling" was spelled out in the Charter of the organization, approved in 1961. However, for the first time this method was applied only at the 63rd Extraordinary OPEC Conference on March 19-20, 1982.
Organization of the Petroleum Exporting Countries in numbers
1242.2 billion barrels
Total proven oil reserves of OPEC member countries
The share of reserves of the member countries of the organization from all world oil reserves
39,338 thousand barrels per day
The volume of oil production by OPEC countries
OPEC share in world oil production
Share of OPEC world exports
BP Energy Review data for 2018.
*Data from the International Energy Agency for 2018.
OPEC countries
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, countries whose economies are directly dependent on oil production and export began to join the organization.
Despite the fact that OPEC includes countries from different parts light, historically the greatest influence Inside the cartel, Saudi Arabia and other states of the Middle East possess.
Such a preponderance of influence is connected not only with the fact that some of these countries are the founders of the organization, but also with the huge oil reserves concentrated on the territory of the Arabian Peninsula and Saudi Arabia in particular, the high level of production, as well as the availability of the most modern technologies for extracting this mineral on surface. For comparison, in 2018, Saudi Arabia produced an average of 10.5 million barrels per day, and the closest country in terms of production among the cartel members, Iran, was 4.5 million barrels per day.
As of the end of 2019, the organization includes 14 countries. Below is a table listing the states that are members of OPEC, in the order in which they joined the organization.
Years of membership
Oil and condensate production, million barrels
Proved reserves, billion tons
Near East
Near East
Near East
Saudi Arabia
Near East
Venezuela
South America
North Africa
United Arab Emirates
Near East
North Africa
West Africa
South America
1973 - 1992,
2007 -
Central Africa
1975 - 1995,
2016 -
South Africa
Equatorial Guinea
Central Africa
Central Africa
*Ecuador was not a member of the organization from December 1992 to October 2007. In 2019, the country announced that it would leave OPEC on January 1, 2020.
**Gabon suspended membership in the organization from January 1995 to July 2016.
In addition, OPEC included:
Indonesia (from 1962 to 2009, and from January 2016 to November 30, 2016);
- Qatar (from 1961 to December 31, 2018).
To approve the admission of a new member to the organization, the consent of three-quarters of the current members, including all five founders of OPEC, is required. Some countries are waiting for an agreement on the assignment of membership in the organization for several years. For example, Sudan filed a formal application in October 2015, but this moment(end of 2019) is still not a member of the organization.
Each cartel member is required to pay an annual membership fee, the amount of which is set at the OPEC meeting. The average donation is $2 million.
As mentioned above, there have been several moments in the organization's history when countries terminated or temporarily suspended membership. This was mainly due to the disagreement of the countries with the production quotas introduced by the organization and the unwillingness to pay membership dues.
Organization structure
OPEC meetings
The supreme governing body of the Organization of the Petroleum Exporting Countries is the Conference of the Member States, or, as it is more commonly called, the OPEC meeting or meeting.
OPEC meets twice a year, and if necessary, extraordinary sessions are organized. The meeting place, in most cases, is the headquarters of the organization, which has been located in Vienna since 1965. A delegation from each country is present at the meeting, usually headed by the ministers of oil or energy of the respective country.
President of the Conference
The meetings are chaired by the President of the Conference (OPEC President), who is elected every year. Since 1978, the post of Deputy President has also been introduced.
Each member country of the organization appoints a special representative, from which the Board of Governors is formed. The composition of the council is approved at the OPEC meeting, as is its chairman, who is elected for a period of three years. The functions of the council are to manage the organization, convene the Conferences and draw up the annual budget.
Secretariat
The executive body of the Organization of the Petroleum Exporting Countries is the Secretariat, headed by the Secretary General. The Secretariat is responsible for the implementation of all resolutions adopted by the Conference and the Board of Governors. In addition, this body conducts research, the results of which are key factors in the decision-making process.
The OPEC Secretariat consists of the Office of the Secretary General, the Legal Department, the Research Division and the Support Services Division.
Informal OPEC meetings
In addition to official meetings, informal OPEC meetings are organized. At them, members of the organization discuss issues in a consultative - preliminary mode, and later at an official meeting they are guided by the results of such negotiations.
OPEC observers
Since the 1980s, OPEC meetings have been attended by representatives of other oil-producing countries that are not members of the organization as observers. In particular, many meetings were attended by representatives of such countries as Egypt, Mexico, Norway, Oman, Russia.
This practice serves as an informal mechanism for coordinating the policies of non-OPEC and OPEC countries.
Russia has been an OPEC observer country since 1998, and from that moment on, regularly participates in extraordinary sessions of the organization's ministerial conferences in this status. In 2015, Russia was offered to join the main structure of the organization, but the representatives of the Russian Federation decided to leave the observer status.
Since December 2005, a formal Russia-OPEC energy dialogue has been established, within the framework of which it is planned to organize annual meetings of the Minister of Energy of the Russian Federation and the Secretary General of the organization alternately in Moscow and Vienna, as well as holding expert meetings on the development of the oil market.
It is worth noting that Russia has a significant impact on OPEC policy. In particular, members of the organization fear a possible increase in Russian production, and therefore refuse to reduce production if Russia does not do the same.
OPEC+ (Vienna Group)
In 2017, a number of non-OPEC oil-producing countries agreed to participate in the reduction of oil production, thus strengthening coordination in the global market. The group included 10 countries: Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, Sudan and South Sudan.
Thus, together with the participants of the organization, production cuts are supported by 24 countries. This common group and the agreement itself between 24 countries is called OPEC + or in some, mainly foreign sources, the Vienna Group.
OPEC reports
The secretariat of the Organization of the Petroleum Exporting Countries issues several periodic publications containing information about its activities, statistical data on the main indicators of the world oil industry in general and cartel members in particular.
The Monthly Oil Market Report (MOMR) - Monthly oil market report - analyzes the most important issues facing the global oil community. Along with an analysis of supply and demand, the report provides an assessment of the dynamics of oil prices, commodity and commodity markets, refining operations, stocks and activity in the tanker market.
- The OPEC Bulletin - OPEC's monthly bulletin is the organization's leading publication, which contains feature articles on the activities and events of the Secretariat, as well as news about member countries.
- The World Oil Outlook (WOO) - An annual summary of medium-term and long-term forecasts Organization of countries - exporters of oil on the world oil market. Various scenarios and analytical models are used in the development of the report, bringing together many factors and issues that may affect the oil industry as a whole and the organization itself in the coming years.
- The Annual Statistical Bulletin (ASB) - An annual statistical bulletin - combines statistical data from all member countries of the organization and contains about 100 pages with tables, charts and graphs detailing world oil and gas reserves, oil production and production of petroleum products, export data and transportation, as well as other economic indicators.
In addition, publications such as the Annual Report, the quarterly OPEC Energy Review and the five-yearly Long-Term Strategy are worth noting.
Also on the organization's website you can find "Frequently Asked Questions" and a brochure "Who gets what from oil?".
OPEC oil basket
For a more efficient calculation of the cost of oil produced in the member countries of the organization, the so-called "OPEC oil basket" was introduced - 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.
Background of creation and history of the organization
Period after World War II
In 1949, Venezuela and Iran made the first attempts to create an organization, offering Iraq, Kuwait and Saudi Arabia to establish a connection between the oil exporting countries. At the time, some of the world's largest fields in the Middle East were just starting to produce.
After World War II, the United States was the largest producer and at the same time the largest consumer of oil. The world market was dominated by a group of seven multinational oil companies known as the "Seven Sisters", five of which were located in the United States and formed as a result of the collapse of the Rockefeller monopoly Standard Oil:
Exxon
Royal Dutch Shell
Texaco
Chevron
Mobile
gulf oil
British Petroleum
Thus, the desire of the oil-exporting countries to unite was dictated by the need to create a counterweight to the economic and political influence of the transnational group of the Seven Sisters.
1959 - 1960 The wrath of the exporting countries
In February 1959, as supplies increased, the multinational companies of the Seven Sisters unilaterally lowered the price of Venezuelan and Middle Eastern crude oil by 10%.
A few weeks later, the first Arab Petroleum League Congress was held in Cairo (Egypt). Arab states. The congress was attended by representatives of the two largest oil-producing countries after the USA and the USSR - Abdullah Takiri from Saudi Arabia and Juan Pablo Perez Alfons from Venezuela. Both ministers expressed outrage at the decline in commodity prices, and instructed their counterparts to conclude the Maadi Pact, or Gentleman's Agreement, calling for the creation by exporting countries of an "oil advisory commission" to which multinational companies should submit plans for changes in commodity prices.
In relation to the West, there was hostility and protest against the Seven Sisters, who at that time controlled all oil operations in the exporting countries and wielded enormous political influence.
In August 1960, ignoring warnings, multinational companies again announced a reduction in the price of Middle Eastern oil.
1960 - 1975 Founding of OPEC. First years.
On September 10 - 14, 1960, at the initiative of Abdullah Tariqi (Saudi Arabia), Alfonso Perez (Venezuela) and Iraqi Prime Minister Abd al-Karim Qasim, the Baghdad Conference was organized. At the meeting, representatives of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela met to discuss the increase in the price of oil produced by their countries, as well as policies to respond to the actions of multinational companies.
As a result, despite strong opposition from the United States, the five states formed the Organization of the Petroleum Exporting Countries (OPEC), whose goal was to ensure the best price for oil, regardless of the major oil corporations.
Initially, the participating countries in the Middle East called for the headquarters of the organization in Baghdad or Beirut. However, Venezuela advocated a neutral location, which served as the location of the headquarters in Geneva (Switzerland).
In 1965, after Switzerland refused to renew diplomatic privileges, OPEC headquarters was moved to Vienna (Austria).
During 1961-1975, the five founding countries were joined by: Qatar, Indonesia, Libya, the United Arab Emirates (originally only the Emirate of Abu Dhabi), Algeria, Nigeria, Ecuador and Gabon. By the early 1970s, OPEC members accounted for more than half of the world's oil production.
On April 2, 1971, the Organization of the Petroleum Exporting Countries signed the Trypillia Agreement with major oil companies doing business in the Mediterranean region, which resulted in an increase in oil prices and an increase in the profits of producing countries.
1973 - 1974 Oil embargo.
In October 1973, the OAPEC (Organization of the Arab Petroleum Exporting Countries, made up of the Arab majority of OPEC, plus Egypt and Syria) announced a massive production cut and oil embargo against the United States of America and other advanced industrial nations supporting Israel in the Judgment War. day.
It is worth noting that in 1967, in response to the Six-Day War, an attempt was also made to embargo against the United States, but the measure was ineffective. The embargo of 1973, on the contrary, led to a sharp increase in oil prices from $3 to $12 per barrel, which significantly affected world economy. The world has experienced a global economic downturn, rising unemployment and inflation, declining stock and bond prices, shifts in the trade balance, etc. Even after the embargo was lifted in March 1974, prices continued to rise.
Oil embargo 1973 - 1974 served as a catalyst for the founding of the International Energy Agency, and also prompted many industrialized countries to create national oil reserves.
Thus, OPEC has demonstrated its influence in the economic and political arena.
1975 - 1980 Special Fund, OFID
The activities of the Organization of the Petroleum Exporting Countries in the field of international assistance began long before the jump in oil prices in 1973-1974. For example, the Kuwait Foundation for Arabic economic development has been operating since 1961.
After 1973 some Arab countries have become the largest providers of foreign aid, and OPEC has added to its targets the supply of oil to ensure the economic and social growth of poorer countries. The OPEC Special Fund was established in Algiers in March 1975 and formally established in January of the following year.
In May 1980, the Fund was re-qualified as an official international development agency and renamed the Fund international development OPEC (OPEC Fund for International Development, OFID) with the status of a permanent observer in the United Nations.
1975 Hostage taking.
On December 21, 1975, several oil ministers, including a representative from Saudi Arabia and Iran, were taken hostage at the OPEC Conference in Vienna. The attack, which killed three ministers, was organized by a six-man team led by the Venezuelan militant "Carlos the Jackal", who announced their goal was the liberation of Palestine. Carlos planned to take over the conference by force and ransom all eleven oil ministers present except for Ahmed Zaki Yamani and Jamshid Amouzegar (representatives of Saudi Arabia and Iran), who were to be executed.
Carlos marked 42 of the 63 hostages on the bus and headed for Tripoli with a stop in Algiers. He originally planned to fly from Tripoli to Baghdad, where Yamani and Amusegar were to be killed. 30 non-Arab hostages were released in Algiers, and several more in Tripoli. After that, 10 people remained hostage. Carlos had a telephone conversation with Algerian President Houari Boumediene, who informed Carlos that the deaths of the oil ministers would lead to an attack on the plane.
Boumedienne must also have offered Carlos asylum, and possibly financial compensation, for failing to complete his assignment. Carlos expressed regret that he could not kill Yamani and Amusegar, after which he and his accomplices left the plane and fled.
Some time after the attack, Carlos' accomplices reported that Wadi Haddad, the founder of the Popular Front for the Liberation of Palestine, had commanded the operation. They also claimed that the idea and funding came from the Arab president, who is widely believed to be Muammar Gaddafi of Libya (the country is part of OPEC). Other militants, Bassam Abu Sharif and Klein, claimed that Carlos received and kept a ransom of US$20 million to US$50 million from the "Arab President". Carlos claimed that Saudi Arabia paid the ransom on Iran's behalf, but the money was "diverted en route and lost in the revolution."
Carlos was only caught in 1994 and is serving a life sentence for at least 16 other murders.
Oil crisis 1979 - 1980, oil surplus 1980
In response to the wave of nationalization of oil reserves and the high oil prices of the 1970s. industrialized countries have taken a number of steps to reduce their dependence on OPEC. Especially after the quotes broke new records, approaching $40 per barrel in 1979-1980, when the Iranian revolution and the Iran-Iraq war disrupted regional stability and oil supplies. In particular, the transition of energy companies to coal, natural gas and nuclear energy began, and governments began to allocate multi-billion dollar budgets for research programs to find alternatives to oil. Private companies have started developing large deposits oil in non-OPEC countries such as Siberia, Alaska, the North Sea and the Gulf of Mexico.
By 1986, global demand for oil had fallen by 5 million barrels per day, production in non-member countries had risen substantially, and OPEC's market share had fallen from about 50% in 1979 to less than 30% in 1985. As a result, the price of oil declined for six years, culminating in a doubling of prices in 1986.
To combat the decline in oil revenues, Saudi Arabia in 1982 demanded that OPEC check the fulfillment of the oil production quota of the cartel member countries. When it turned out that other countries were not complying with the requirement, Saudi Arabia reduced its own production from 10 million barrels per day in 1979-1981. to 3.3 million barrels per day in 1985. However, when even such a measure failed to stop the fall in prices, Saudi Arabia changed its strategy and flooded the market with cheap oil. As a result, oil prices have fallen below $10 per barrel, and producers with higher production costs are suffering losses. OPEC member countries that did not comply with the agreement earlier began to limit production in order to maintain prices.
1990 - 2003 Overproduction and supply disruptions.
Before the invasion of Kuwait in August 1990, Iraqi President Saddam Hussein pushed the Organization of the Petroleum Exporting Countries to stop overproduction and raise oil prices in order to provide financial assistance to OPEC countries and speed up recovery from the 1980–1988 wars in Iran. These two Iraqi wars against other members of OPEC seriously shook the cohesion of the organization, and due to supply disruptions, oil prices began to decline rapidly. Even the September 2001 al-Qaeda attack on New York skyscrapers and the US invasion of Iraq in March 2003 had less short-term Negative influence on oil quotes, since during this period cooperation between the OPEC countries resumed.
Two countries withdrew from OPEC in the 1990s and joined in the mid-1970s. In 1992, Ecuador withdrew because it refused to pay its annual membership fee of $2 million, and also believed that it needed to mine more oil than prescribed by the quota restrictions (in 2007 the country rejoined the organization). Gabon suspended membership in January 1995 (also returned in July 2016).
It is worth noting that the volume of oil production in Iraq, despite the country's permanent membership in the organization since its foundation, was not subject to quota regulation in the period from 1998 to 2016 due to political difficulties.
The decline in demand caused by the Asian financial crisis of 1997–1998 sent oil prices down to 1986 levels. After quotations fell to around $10 a barrel, diplomatic talks led to cuts in output from OPEC countries, Mexico and Norway. After prices fell again in November 2001, OPEC members Norway, Mexico, Russia, Oman and Angola agreed to cut production from January 1, 2002 for 6 months. In particular, OPEC cut production by 1.5 million barrels per day.
In June 2003, the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries held their first joint workshop on energy issues. Since then, meetings of the two organizations have been held on a regular basis.
2003 - 2011 Oil market volatility.
In 2003 - 2008 in Iraq, occupied by the United States, there were massive riots and sabotage. This coincided with rapidly growing demand for oil from China and commodity investors, periodic attacks on the Nigerian oil industry and a reduction in spare capacity to protect against potential shortages.
This combination of events caused oil prices to skyrocket to levels well above those previously projected by the organization. Price volatility reached a breaking point in 2008 when WTI crude rose to a record $147/bbl in July before falling to $32/bbl in December. It was the time of the greatest global economic downturn since World War II.
The organization's annual oil export revenue also set a new record in 2008. It was valued at about $1 trillion and reached similar annual rates in 2011-2014 before falling again. By the start of the 2011 Libyan Civil War and the Arab Spring, OPEC began issuing clear statements to counter "excessive speculation" in the oil futures markets, blaming financial speculators for driving up volatility outside of market fundamentals.
In May 2008, Indonesia announced its withdrawal from the organization at the expiration of its membership, explaining its decision by switching to oil imports and the inability to meet the prescribed production quota (in 2016, Indonesia was again part of the organization for a period of several months).
2008 Mining dispute.
The different economic needs of OPEC members often lead to internal debate over production quotas. The poorer members pressed for production cuts by other countries in order to raise the price of oil and thus their own incomes. These proposals clash with Saudi Arabia's long-term strategy of partnering with the world's economic powers to secure stable oil supplies that should boost economic growth. Part of the basis of this policy is Saudi concern that excessively expensive oil or unreliable supplies will spur industrial nations to conserve energy and develop alternative fuels, reducing global demand for oil and eventually leaving reserves in the ground. Saudi Oil Minister Yamani commented on the issue in 1973 with the following words: "The Stone Age did not end because we ran out of stones."
On September 10, 2008, when oil prices were still around $100 a barrel, a production dispute arose at an OPEC meeting. Then, Saudi officials reportedly walked out of a negotiating session in which other members voted to cut OPEC production. While the Saudi delegates formally approved the new quotas, they anonymously stated that they would not comply with them. The New York Times quotes one of the delegates as saying, “Saudi Arabia will meet the demand of the market. We will see what the market needs and we will not leave the buyer without oil. The policy hasn't changed." A few months later, oil prices fell to $30 and did not return to $100 until the Libyan civil war in 2011.
2014–2017 Too much oil.
During 2014–2015 OPEC member countries consistently exceeded their production ceiling. At this time, China was experiencing a slowdown in economic growth, and US oil production almost doubled compared to 2008 and approached the levels of world leaders in terms of production - Saudi Arabia and Russia. There was such a jump due to a significant improvement and dissemination of development technology shale oil by "fracking". These developments, in turn, led to lower U.S. oil import requirements (approaching energy independence), record global oil inventories, and a plunge in oil prices that continued into early 2016.
Despite the global oil glut, on November 27, 2014 in Vienna, Saudi Oil Minister Ali al-Naimi blocked calls from poorer OPEC members for production cuts to support prices. Naimi argued that the oil market should be left uninterrupted in order for it to balance itself at lower prices. According to his arguments, OPEC's market share should recover due to the fact that the costly production of shale oil in the US at such low prices will not be profitable.
A year later, at the time of the OPEC meeting in Vienna on December 4, 2015, the organization exceeded the production ceiling for 18 consecutive months. At the same time, US oil production decreased only slightly from the peak. World markets appeared to be at least 2 million barrels a day full, even as the war in Libya cut the country's production by 1 million barrels a day. Oil producers have been forced to make major adjustments to keep prices at $40. Indonesia was briefly reunited with an export organization, Iraqi production increased after years of unrest, Iran was ready to restore production when international sanctions were lifted, hundreds of world leaders under the Paris climate agreement committed to limit carbon emissions from fossil fuels, and solar technology became more and more competitive and popular. In light of all this market pressure, the organization has decided to postpone the inefficient production ceiling until the next ministerial conference in June 2016. By January 20, 2016, the price of the OPEC Oil Basket had fallen to $22.48 per barrel, less than one-fourth of its high since June 2014 ($110.48) and less than one-sixth of its July 2008 high ($140. 73).
In 2016, the oil glut was partly offset by large production cuts in the US, Canada, Libya, Nigeria and China, and the price of the basket gradually rose to $40 per barrel. The organization regained a modest percentage of market share, maintained the status quo at its June conference, and approved "prices at levels suitable for both growers and consumers", although many growers were still in severe economic difficulty.
2017–2019 Reducing production.
In November 2016, OPEC members, tired of declining profits and shrinking financial reserves, finally signed an agreement to cut production and introduce quotas (Libya and Nigeria, devastated by the riots, were exempt from complying with the agreement). Along with this, several countries outside the organization, including Russia, supported the Organization of the Petroleum Exporting Countries in the decision to limit production. This consolidation is called the OPEC+ agreement.
In 2016, Indonesia, instead of agreeing to the requested 5% cut in production, again announced a temporary suspension of membership in the organization.
During 2017, oil prices fluctuated around $50 per barrel, and in May 2017, OPEC countries decided to extend the production limit until March 2018. Prominent oil analyst Daniel Yergin described the relationship between OPEC and shale producers as "a mutual existence where both sides learn to live at prices that are lower than they would like."
In December 2017, Russia and OPEC agreed to extend the production cut by 1.8 million barrels per day until the end of 2018.
On January 1, 2019, Qatar left the organization. According to the New York Times, this is a strategic response to the ongoing boycott of Qatar by Saudi Arabia, the United Arab Emirates, Bahrain and Egypt.
On June 29, 2019, Russia again agreed with Saudi Arabia to extend by six to nine months the initial production cut in 2018.
In October 2019, Ecuador announced that it would withdraw from the organization effective January 1, 2020 due to financial problems.
In December 2019, OPEC and Russia agreed to one of the biggest production cuts to date. The agreement will last for the first three months of 2020, and is aimed at preventing an oversupply of oil in the market.
OPEC countries and their capitals on the map (list 15) → members of the Organization of Petroleum Exporting Countries (OPEC). Below is a table of OPEC member countries + map, capital, alphabetical list, flags and continents, in English and Russian
| No. Flag | Letter | Country | Capital | Continent | letters |
| 1 | BUT | Algeria | Algeria | Africa | 5 |
| 2 | BUT | Angola | Luanda | Africa | 6 |
| 3 | AT | Venezuela | Caracas | South America | 9 |
| 4 | G | Gabon | Libreville | Africa | 5 |
| 5 | And | Iraq | Baghdad | Asia | 4 |
| 6 | And | Iran | Tehran | Asia | 4 |
| 7 | To | Congo | Brazzaville | Africa | 5 |
| 8 | To | Kuwait | El Kuwait | Asia | 6 |
| 9 | To | Qatar | Doha | Asia | 5 |
| 10 | L | Libya | Tripoli | Africa | 5 |
| 11 | O | UAE | Abu Dhabi | Asia | 8 |
| 12 | H | Nigeria | Abuja | Africa | 7 |
| 13 | FROM | Saudi Arabia | Riyadh | Asia | 17 |
| 14 | E | Equatorial Guinea | Malabo | Africa | 21 |
| 15 | E | Ecuador | Quito | South America | 7 |
Presentation with flags for children and adults: capitals of 15 OPEC countries. Possibility to sort the table alphabetically, select the necessary neighboring states around and their capitals, friendly and unfriendly. Go to detailed map in Russian, look around the city, show the border areas nearby, find and write out the names. How many adjacent neighboring states of the 1st and 2nd order, their location in the region, as indicated
See on the diagram with whom they are neighbors and places nearby, where the nearest city on the border is located. List the names of the continents and parts of the world surrounding the seas and oceans. Find out the number of letters in the name and what it starts with, who is a member of the association of oil exporters from their continent
What is OPEC? international organization oil exporting countries
Goals: coordination of activities and control of oil production volumes, stabilization of the oil products market and oil prices. To do this, the countries included in the cartel meet 2 times a year at OPEC conferences. Russia has been an observer in the OPEC system since 1998. The headquarters of the organization is Vienna, Austria. The next meeting will take place on December 5, 2018.
Full composition - which countries are members of OPEC + capital:
- Algiers, Algiers
- Angola, Luanda
- Venezuela, Caracas
- Gabon, Libreville
- Iran, Tehran
- Iraq, Baghdad
- Congo, Brazzaville
- Kuwait City, Kuwait City
- Qatar, Doha
- Libya, Tripoli
- United Arab Emirates, Abu Dhabi
- Nigeria, Abuja
- Saudi Arabia, Riyadh
- Equatorial Guinea, Malabo
- Ecuador, Quito
All members of the OPEC conference in English:
Full list - OPEC countries on the map and capitals
The table is alphabetical, it contains all the world's largest oil exporters, which are located on three continents of the earth - Asia, South America, Africa. Conference participants by continent:
According to the list, a group of fifteen states participating in an international conference in Austria, Europe. Also presented interactive map their location in the world
Now you know which countries are part of the OPEC Organization of Petroleum Exporting Countries, you can list and show them on the world map 2020
The content of the article
ORGANIZATION OF OIL EXPORTING COUNTRIES (OPEC)(Organization of Petroleum Exporting Countries, OPEC) is an international economic organization that unites most of the leading oil exporting countries. Regulates the volume of production and the price of oil on the world market. OPEC members control 2/3 of the world's oil reserves.
The headquarters of OPEC was originally located in Geneva, later moved to Vienna. Twice a year (not counting extraordinary events) OPEC conferences are held, at which each country is represented by the minister responsible for oil production. In addition to official conferences, ministers also hold informal meetings. The main object of negotiations is the regulation of oil production volumes. The main decisions are made by the rule of unanimity (the right of veto is valid, there is no right of abstention). The role of the OPEC president, who leads the organizational work on holding conferences and representing OPEC at various international forums, is performed by one of the ministers of the participating countries. At the 132nd Extraordinary Conference of OPEC in July 2004, Sheikh Ahmad al-Fahd al-Sabah, Kuwait's oil minister, was elected.
In the 2000s, the share of 11 OPEC countries in world oil production was approximately 35-40%, in exports - 55%. This dominant position allows them to exert a strong influence on the development of not only the world oil market, but also the world economy as a whole.
OPEC in the 1960s–1970s: the path to success.
The organization was created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to coordinate their relations with Western oil companies. As an international economic organization, OPEC was registered with the UN on September 6, 1962. Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador ( 1973, withdrew from OPEC in 1992) and Gabon (1975, withdrew in 1996). As a result, the OPEC organization united 13 countries (Table 1) and became one of the main participants in the world oil market.
| Table 1. OPEC COUNTRIES AT THE HIGHEST RISE OF THEIR INFLUENCE (1980) | ||||
| Countries | GNP per capita, USD | Share of oil in export value, % | Oil production, million tons | Proved oil reserves, million tons |
| United Arab Emirates (UAE) | 25,966 | 93,6 | 83 | 4,054 |
| Qatar | 25,495 | 95,2 | 23 | 472 |
| Kuwait | 19,489 | 91,9 | 81 | 9,319 |
| Saudi Arabia | 14,049 | 99,9 | 496 | 22,946 |
| Libya | 11,327 | 99,9 | 86 | 3,037 |
| Gabon | 6,138 | 95,3 | 9 | 62 |
| Venezuela | 4,204 | 94,7 | 113 | 2,604 |
| Iraq | 3,037 | 99,2 | 130 | 4,025 |
| Algeria | 2,055 | 91,7 | 51 | 1,040 |
| Iran | 1.957 | 94,5 | 77 | 7,931 |
| Ecuador | 1.203 | 54,1 | 11 | 153 |
| Nigeria | 844 | 95,3 | 102 | 2,258 |
| Indonesia | 444 | 72,1 | 79 | 1,276 |
The creation of OPEC was caused by the desire of oil exporting countries to coordinate efforts to prevent a decline in world oil prices. The reason for the formation of OPEC was the actions of the Seven Sisters, a global cartel that united the companies British Petroleum, Chevron, Exxon, Gulf, Mobil, Royal Dutch Shell and Texaco. These firms, which controlled the processing of crude oil and the sale of petroleum products around the world, unilaterally reduced the purchase price of oil, on the basis of which they paid income taxes and royalties (rent) for the right to exploit natural resources to oil-producing countries. In the 1960s, there was an oversupply of oil in the world markets, and the original purpose of the creation of OPEC was the agreed restriction of oil production for the sake of stabilizing prices.
In the 1970s, under the influence of the rapid development of transport and the construction of thermal power plants, world demand for oil increased dramatically. Now the oil-producing countries could consistently increase the rent payments of oil producers, significantly increasing their revenues from oil exports. At the same time, the artificial containment of oil production led to an increase in world prices (Table 2).
| Table 2. DYNAMICS OF CURRENT PRICES AND RENTAL PAYMENTS FOR REFERENCE OIL* | ||
| years | Current selling prices, dollars per barrel | Rent payments (royalty plus income tax) |
| 1960 | 1,50 | 0,69 |
| 1965 | 1,17 | 0,78 |
| February 1971 | 1,65 | 1,19 |
| January 1973 | 2,20 | 1,52 |
| November 1973 | 3,65 | 3,05 |
| May 1974 | 9,55 | 9,31 |
| October 1975 | 11,51 | 11,17 |
| * Reference oil is oil from Saudi Arabia. Oil from other countries is recalculated to the reference oil depending on the fuel value. | ||
In 1973-1974, OPEC managed to achieve a sharp increase in world oil prices by 4 times, in 1979 - by another 2 times. The formal reason for price gouging was the Arab-Israeli war of 1973: demonstrating solidarity in the fight against Israel and its allies, the OPEC countries for some time stopped shipping oil to them altogether. Due to the "oil shock", the crisis of 1973–1975 turned out to be the worst global economic crisis in the entire period after World War II. Formed and strengthened in the fight against the Seven Sisters oil cartel, OPEC itself became the strongest cartel in the world oil market. By the early 1970s, its members accounted for approximately 80% of proven reserves, 60% of production, and 90% of oil exports in non-socialist countries.
The second half of the 1970s was the peak of OPEC's economic prosperity: demand for oil remained high, soaring prices brought huge profits to oil-exporting countries. It seemed as if this prosperity would last for many decades.
The economic success of the OPEC countries had a strong ideological significance: it seemed that the developing countries of the "poor South" managed to achieve a turning point in the struggle with the developed countries of the "rich North". The success of OPEC was superimposed on the rise of Islamic fundamentalism in many Arab countries, which further enhanced the status of these countries as a new force in world geo-economics and geopolitics. Realizing itself as a representative of the "third world", in 1976 OPEC organized the OPEC International Development Fund - a financial institution that provides assistance to developing countries that are not members of OPEC.
The success of this association prompted other third world countries exporting raw materials (copper, bauxite, etc.) to try to use their experience, also coordinating their actions to increase incomes. However, these attempts were generally unsuccessful, because other commodities were not in such high demand as oil.
OPEC in the 1980s–1990s: a weakening trend.
The economic success of OPEC was, however, not very sustainable. In the mid-1980s, world oil prices almost halved (Figure 1), drastically reducing the income of the OPEC countries from "petrodollars" (Figure 2) and burying hopes for long-term prosperity.
The weakening of OPEC was caused by two groups of reasons - a relative decline in demand for oil and an increase in its supply.
On the one hand, the "oil shock" stimulated the search for new energy sources not related to oil production (in particular, the construction of nuclear power plants). The widespread introduction of energy-saving technologies in general has led to a much slower growth in demand for energy resources than expected. On the other hand, the system of oil production quotas by OPEC members turned out to be unstable - it was undermined both from outside and from within.
Some countries that were also major oil exporters were not included in OPEC - these are Brunei, Great Britain, Mexico, Norway, Oman and, most importantly, the USSR, which, according to some estimates, has the second largest potential oil reserves in the world. These countries benefited from the increase in world prices initiated by OPEC, but they did not obey its decisions to limit oil production.
Within OPEC itself, unity of action was often broken. The organic weakness of OPEC is that it unites countries whose interests are often opposed. Saudi Arabia and other countries in the Arabian Peninsula are sparsely populated, but have huge oil reserves, receive large investments from abroad, and maintain close relations with the Seven Sisters. Some other OPEC countries, such as Nigeria and Iraq, are characterized by high population and poverty, they pursue costly economic development programs and have high external debt. These countries are forced to extract and sell as much oil as possible in order to receive foreign exchange earnings, especially if oil prices are falling. The political orientation of the OPEC countries also differs: if Saudi Arabia and Kuwait relied on the support of the United States, then many other Arab countries (Iraq, Iran, Libya) pursued an anti-American policy.
The discord between the OPEC countries is aggravated by political instability in the Persian Gulf. In the 1980s, Iraq and Iran maximized their oil production to pay for the costs of war with each other. In 1990, Iraq invaded Kuwait in an attempt to annex it, but the Gulf War (1990–1991) ended in Iraq's defeat. International trade sanctions were applied to the aggressor, which severely limited Iraq's ability to export oil. When American troops occupied Iraq in 2003, it generally took this country out of the ranks of independent participants in the world oil market.
As a result of the influence of these factors, OPEC lost its role as the main regulator of world oil prices and became only one (albeit very influential) of the participants in exchange trading on the world oil market (Table 3).
| Table 3 THE EVOLUTION OF THE PRICING MECHANISM IN THE WORLD OIL MARKET IN THE SECOND HALF OF THE 20TH CENTURY | |||
| Market Characteristics | Stages of development of the world oil market | ||
| Before 1971 | 1971–1986 | After 1986 | |
| Pricing principle | cartel | Competitive | |
| Who sets the price | Cartel of Oil Refining Corporations “Seven Sisters” | 13 OPEC countries | Exchange |
| Dynamics of oil demand | sustainable growth | Alternating rise and fall | slow growth |
Prospects for the development of OPEC in the 21st century.
Despite the difficulties of control, oil prices remained relatively stable throughout the 1990s compared to the fluctuations they experienced in the 1980s. Moreover, since 1999, oil prices have gone up again. The main reason for the trend change was OPEC's initiatives to limit oil production, supported by other major oil-producing countries that have observer status in OPEC (Russia, Mexico, Norway, Oman). Current world oil prices in 2005 reached a historical maximum, exceeding $60 per barrel. However, adjusted for inflation, they still remain below the 1979-1980 level, when the price in modern terms exceeded $80, although they exceed the level of 1974, when the price was $53 in modern terms.
The development outlook for OPEC remains uncertain. Some believe that the organization managed to overcome the crisis of the second half of the 1980s - early 1990s. Of course, the former economic strength, as in the 1970s, cannot be returned to it, but in general, OPEC still has favorable opportunities for development. Other analysts believe that the OPEC countries are unlikely to be able to comply with the established oil production quotas and a clear common policy for a long time.
An important factor in the uncertainty of OPEC's prospects is associated with the vagueness of the ways of development of world energy as such. If serious progress is made in the use of new energy sources (solar energy, nuclear energy, etc.), then the role of oil in the world economy will decrease, which will lead to a weakening of OPEC. Official forecasts, however, most often predict the preservation of oil as the planet's main energy resource for the coming decades. According to the report International Energy Forecast - 2004, prepared by the US Department of Energy Information Administration, the demand for oil will increase, so that with existing oil reserves, oil fields will be depleted by about 2050.
Another factor of uncertainty is the geopolitical situation on the planet. OPEC took shape in a situation of a relative balance of power between the capitalist powers and the countries of the socialist camp. However, today the world has become more unipolar, but less stable. On the one hand, many analysts fear that the United States, as the world's policeman, may begin to use force against those who pursue economic policies that do not coincide with America's interests. The events of the 2000s in Iraq show that these predictions are justified. On the other hand, the rise of Islamic fundamentalism could increase political instability in the Middle East, which would also weaken OPEC.
Since Russia is the largest oil-exporting country that is not a member of OPEC, the question of our country's entry into this organization is periodically discussed. However, experts point to the discrepancy between the strategic interests of OPEC and Russia, which is more profitable to remain an independent force in the oil market.
Consequences of OPEC activity.
The high revenues received by the OPEC countries from oil exports have a dual effect on them. On the one hand, many of them manage to improve the standard of living of their citizens. On the other hand, petrodollars can become a factor slowing down economic development.
Among the OPEC countries, even the richest in oil (Table 4), there is not a single one that could become sufficiently developed and modern. Three Arab countries - Saudi Arabia, the United Arab Emirates and Kuwait - can be called rich, but not developed. An indicator of their relative backwardness is at least the fact that all three still retain feudal-type monarchical regimes. Libya, Venezuela and Iran are at about the same low level of prosperity as Russia. Two more countries, Iraq and Nigeria, should be considered by world standards not just poor, but very poor.
| Table 4 COUNTRIES WITH THE LARGEST OIL RESERVES IN THE EARLY 2000S | |||
| Countries | Share in world oil reserves, % | Share in world oil production by exporting countries, % | GDP per capita, thousand dollars |
| Saudi Arabia | 27 | 16 | 13,3 |
| Russia (not part of OPEC) | 13 | 15 | 7,1 |
| Iraq | 10 | 5 | 0,8 |
| United Arab Emirates | 10 | 4 | 20,5 |
| Kuwait | 10 | 4 | 18,7 |
| Iran | 9 | 7 | 6,0 |
| Venezuela | 7 | 6 | 5,7 |
| Libya | 3 | 3 | 7,6 |
| Nigeria | 2 | 4 | 0,9 |
| United States (not part of OPEC) | 2 | 0 | 34,3 |
The contrast between natural wealth and the lack of noticeable progress in development is explained by the fact that abundant oil reserves (as well as other "free" natural resources) create a strong temptation to fight not for the development of production, but for political control over the exploitation of resources. When there is no readily available natural wealth in a country, income must be generated by productive activities, the benefits from which accrue to the majority of citizens. If a country is generously endowed with natural resources, then its elite tends to be more rent-seeking than manufacturing. Natural wealth can thus turn into a social disaster - the elite get richer, and ordinary citizens vegetate in poverty.
Among the OPEC countries there are, of course, examples when natural resources operated relatively efficiently. Prominent examples are Kuwait and the United Arab Emirates. In these countries, current oil revenues are not only “eaten up”, but also put aside in a special reserve fund for future expenses, and are also spent on the development of other sectors of the economy (for example, the tourism business).
Yuri Latov,Dmitry Preobrazhensky
The Organization of the Petroleum Exporting Countries (OPEC), The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization established to manage the oil policy of oil-producing OPEC member countries.
Countries that are members of OPEC in 2018-2019
The following 14 countries are currently members of OPEC:
- Algiers (1969).
- Angola (2007).
- Venezuela (1960).
- Gabon (1975).
- Iraq (1960).
- Iran (1960).
- Congo (2018).
- Kuwait (1960).
- Libya (1962).
- Nigeria (1971).
- United Arab Emirates (1967).
- Saudi Arabia (1960).
- Ecuador (1973).
- Equatorial Guinea (2017).
Until 2019, the composition consisted of 15 countries, including Qatar, which in December 2018 announced its withdrawal from OPEC from January 1, 2019.
The Russian Federation, being the world leader in oil production, is not a member of OPEC. Russia can participate in OPEC discussions, but cannot influence the organization's decision-making and oil price setting.
The organization's charter distinguishes between founding members and full members whose applications have been accepted by the Conference, which is held twice a year at OPEC headquarters.
Former members of OPEC
The membership of the organization changed. At the moment, the following countries are not represented in it, which for one reason or another have suspended their membership: Indonesia (2016), Qatar (2019).
OPEC Goals:
- coordination and unification of oil policy among member countries to ensure fair and stable prices for oil producers;
- efficient, economical and regular supplies of oil to consuming countries;
- a fair return on capital for those who invest in the industry.
The main goals of the organization are fixed in the OPEC Charter:
- The main goal of the Organization is to coordinate and unify the oil policy of the member countries and determine the best means to protect their interests, individually and collectively.
- The organization is engaged in the development of ways and means to ensure the stabilization of prices in the international oil markets, where the goal is to eliminate unreasonable fluctuations.
- Attention must always be given to the interests of the nation and the need to ensure a stable income in producing countries. Efficient, economical and regular supply of oil to consuming countries and a fair return on invested capital for those who invest in the oil industry.
History of OPEC
The Organization of the Petroleum Exporting Countries was created at the Baghdad Conference on September 10-14, 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
In the first five years of its existence, the headquarters of OPEC was in Geneva (Switzerland), and on September 1, 1965 it was moved to Vienna (Austria).
1960s
The formation of OPEC by five oil-producing developing countries in Baghdad in September 1960 occurred during transition period in the international economic and political landscape with extensive decolonization and the birth of many new independent states in the developing world. Membership rose to ten: Qatar (1961); Indonesia (1962); Libya (1962); United Arab Emirates (1967); Algeria (1969).
1970s
During this decade, OPEC rose to international prominence as its member countries took control of their domestic oil industry and gained a major influence on the price of crude oil on world markets. Membership rose to 13: Nigeria (1971); Ecuador (1973); Gabon (1975).
1980-1990s
A large excess of oil and the withdrawal of consumers from this hydrocarbon. OPEC's share of the smaller oil market has plummeted. One country left OPEC: Ecuador (1992) and Gabon (1995) suspended its membership.
2000s
Prices soared to record levels in mid-2008 before collapsing amid the global financial crisis and economic downturn. OPEC has taken a prominent place in supporting the oil sector as part of the global effort to overcome the economic crisis. One country has joined OPEC and one has regained membership: Ecuador (2007); Angola (2007). Indonesia (2009) suspended its membership.
From 2010 to now
The global economy represented the main risk to the oil market at the beginning of the decade, as global macroeconomic uncertainty and heightened risks associated with the international financial system weighed on economies. Escalating social unrest in many parts of the world affected both supply and demand during the first half of the decade, although the market remained relatively balanced. During this time period, the membership increased: Equatorial Guinea (2017); Congo (2018). Membership restored: Gabon (2016); Indonesia (2016), but suspended membership again in the same year. Qatar left the organization (2019).
OPEC oil basket
Graph. 1. Change in the cost of the OPEC oil basket from 2007 to 2017.
The OPEC oil basket is calculated as the arithmetic average of the following oil grades:*
- Arab Light (Saudi Arabia);
- Basra Light (Iraq);
- Bonny Light (Nigeria);
- Djeno (Congo);
- Es Sider (Libya);
- Girassol (Angola);
- Iran Heavy (Iran);
- Kuwait Export (Kuwait);
- Merey (Venezuela);
- Murban (UAE);
- Oriente (Ecuador);
- Rabi Light (Gabon);
- Saharan Blend (Algeria);
- Zafiro (Equatorial Guinea).
*Data as of February 2019.
Oil reserves in OPEC member countries
Graph. 2. Explored oil reserves in OPEC member countries
According to current estimates, 80.33% of the world's proven oil reserves are located in OPEC member countries of which:*
OPEC country | Share in world reserves, % | Share in reserves of OPEC member countries, % |
|---|---|---|
| Venezuela | 20,39 | 25,38 |
| Saudi Arabia | 17,93 | 22,32 |
| Iran | 10,48 | 13,05 |
| Iraq | 9,91 | 12,33 |
| Kuwait | 6,88 | 8,56 |
| United Arab Emirates | 6,63 | 8,26 |
| Libya | 3,28 | 4,08 |
| Nigeria | 2,54 | 3,16 |
| Algeria | 0,82 | 1,02 |
| Angola | 0,57 | 0,71 |
| Ecuador | 0,57 | 0,71 |
| Gabon | 0,16 | 0,20 |
| Congo** | 0,08 | 0,10 |
| Equatorial Guinea | 0,08 | 0,10 |
* 2018 data
** 2016 data
Current issues of the organization
The main problems of the organization, which unites countries only on the basis of the presence of exports of crude oil, are mainly in the internal problems of the participating countries. This is the cost of oil production, population, poverty, which often do not help to reach a common opinion on the regulation of production quotas. Also, the main reserves of countries are concentrated in the Middle East, where countries are constantly faced with increasing aggression from terrorist groups, which has a negative impact on the entire economy of the region.
OPEC
We constantly see the abbreviation "OPEC" in the news, and it is not surprising - after all, this organization today has a significant impact 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), established in 1960. Its headquarters were originally located in Geneva, but in 1965 it was moved to Vienna.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 the development of giant oil fields, primarily in the Middle East. In addition, the market has entered Soviet Union, where oil production doubled between 1955 and 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.
Initially, the organization included Iran, Iraq, Saudi Arabia and Venezuela. Then they were 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, 13 countries are currently members of OPEC.
The organization formally sets itself the following main goals:
- protect the interests of the member countries of the organization;
- guarantee the stability of prices for oil and oil products;
- ensure regular supplies of oil to other countries;
- to guarantee the member countries of the organization a stable income from the sale of oil;
- determine strategies for the extraction and sale of oil.
In the first years of its existence, OPEC failed to achieve its goals. But that changed in 1973 when Egyptian and Syrian troops attacked Israeli positions. In this war, called Yom Kippur, the Western world supported the Israeli side. In response, OPEC announced the first embargo restricting oil exports to 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 position of the organization so much that the mid-70s became the "golden age" of OPEC. However, the West began to establish closer ties with the USSR, which actively increased oil supplies. In addition, international oil companies have turned their attention to other important oil areas such as the North Sea and the Gulf of Mexico. The embargo also helped kick off development of the giant Prudhoe Bay field in Alaska, with initial oil reserves in excess of 1.3 billion tons (9.5 billion barrels).
Gradually, OPEC positions were weakened. In the 1980s, the price of oil steadily declined. If in 1981 it reached $40 per barrel, then five years later its level approached $10 per barrel. Iraqi President Saddam Hussein urged OPEC to raise the selling price, which triggered the 1990-1991 Gulf War. Iraq's invasion of Kuwait and the ensuing Persian Crisis shattered OPEC's unity and affected oil prices, which soared to $30 a barrel. As soon as the fear of a lack of oil caused by these military conflicts dissipated, prices rushed down. In 1998, the OPEC countries removed all restrictions on production and exports, which immediately affected the state of the markets - prices again fell below $ 10 per barrel.
To solve the problem, it was proposed to reduce the production of "black gold" - an initiative 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 September 11, 2001, terrorist attacks in the United States, as well as the invasions of Afghanistan and Iraq, caused a sharp rise in oil prices, which allowed it to far exceed the levels that OPEC members wanted to achieve.
Energy and oil ministers of the OPEC member states meet twice a year to assess the state of the international oil market, decide on the necessary actions aimed at stabilizing the market, and make forecasts for the future. Production volumes, which change in accordance with the dynamics of demand in the market, are accepted at OPEC conferences.
Today, members of the organization control approximately two-thirds of the proven oil reserves on the planet. OPEC provides 40% of world production and half of the world's 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 the time of OPEC has passed, it still remains one of the most influential global players in the oil industry, determining its further development.
