Economics - Opec
OPEC
Presented By Ashok, Vinod and Prashant
AGENDA
Introduction to OPEC OPEC Important Events
Present and Future
Feedback
Introduction
What is OPEC?
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Members Qatar (1961) Indonesia (1962) – suspended from January 2009 Libya (1962) United Arab Emirates (1967) Algeria (1969) Nigeria (1971) Ecuador (1973) – suspended (1992- 2007) Angola (2007) and Gabon (1975–1994) Having Headquarters in Vienna Austria Since Sep1, 1965.
World proven reserves for India country (million barrels) 2007 2008 2009 2010 2011 % change11/10 Crude oil 5,459 5,459 5,800 5,820 9,043 55.4
OPEC’s importance OPEC member countries control 81% of the world reserve of crude oil, hence as a collective organisation they set the price of crude oil on the world markets. There has been a quantum leap in oil demand world over and they use their power to either increase or restrict oil supply. Thus OPEC is of immense importance in world commerce.
Purpose – OPEC 's objective is to
Co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on capital to those investing in the industry. Why do fuel prices vary in different countries? (Ref:-Shell.com/India) Cost of buying finished product in the country (country supplies usually cheaper than importing product) Government excise and tax rates Government subsidies for fuel Currency fluctuations
• • • •
• • •
Who controls pump prices In India? (Ref:-Shell.com/India) In India there is no regulated pricing as the Administered Pricing Mechanism was dismantled in 2001. However, the artificially low pump prices of petrol and diesel do
Presented By Ashok, Vinod and Prashant
AGENDA
Introduction to OPEC OPEC Important Events
Present and Future
Feedback
Introduction
What is OPEC?
The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Members Qatar (1961) Indonesia (1962) – suspended from January 2009 Libya (1962) United Arab Emirates (1967) Algeria (1969) Nigeria (1971) Ecuador (1973) – suspended (1992- 2007) Angola (2007) and Gabon (1975–1994) Having Headquarters in Vienna Austria Since Sep1, 1965.
World proven reserves for India country (million barrels) 2007 2008 2009 2010 2011 % change11/10 Crude oil 5,459 5,459 5,800 5,820 9,043 55.4
OPEC’s importance OPEC member countries control 81% of the world reserve of crude oil, hence as a collective organisation they set the price of crude oil on the world markets. There has been a quantum leap in oil demand world over and they use their power to either increase or restrict oil supply. Thus OPEC is of immense importance in world commerce.
Purpose – OPEC 's objective is to
Co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on capital to those investing in the industry. Why do fuel prices vary in different countries? (Ref:-Shell.com/India) Cost of buying finished product in the country (country supplies usually cheaper than importing product) Government excise and tax rates Government subsidies for fuel Currency fluctuations
• • • •
• • •
Who controls pump prices In India? (Ref:-Shell.com/India) In India there is no regulated pricing as the Administered Pricing Mechanism was dismantled in 2001. However, the artificially low pump prices of petrol and diesel do