Opec
Definition and Introduction to OPEC
OPEC, The Organisation of the Petroleum Exporting Countries, is a name that has become synonymous with the worldwide petroleum market. But what does it do, who is involved and how important is OPEC to our day-to-day lives? This article aims to answer these basic questions in a clear and concise fashion.
OPEC is a permanent organisation of 12 countries which are world-leaders in oil production. The primary aim of OPEC is to unify petroleum policies between its member countries, to ensure fair and stable oil prices. OPEC also tries to ensure a steady supply of petroleum to oil consuming nations.
The headquarters of OPEC are found in Vienna, Austria.
Brief History of OPEC
OPEC was created in 1960 at the Baghdad Conference (September 10-14th). The organisation was initially created by 5 nations: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The original headquarters of OPEC were in Geneva, Switzerland until the move to Vienna five years later.
OPEC was, in part, set up in response to the market dominance of the ‘Seven Sisters’; a term coined to describe the major multinational oil companies of the time.
OPEC began to become of international significance in the 1970’s, as the members countries took charge of their respective domestic industries. Collectively, the organisation also became extremely influential in controlling world oil prices.
[pic]
One of the first meetings of OPEC. Image Credit: OPEC - Organization of the Petroleum Exporting Countries
The 1970’s also saw the creation of the OPEC Fund for International Development as the first summit of OPEC leaders concluded that more cooperation was needed between nations in order to keep oil prices stable.
In the 1980’s, cooperation between OPEC and non-OPEC countries vastly improved and environmental policies began to be implemented for the first time. However, a market crash in 1986 meant that oil revenue plummeted and led to tough economic times for several
OPEC, The Organisation of the Petroleum Exporting Countries, is a name that has become synonymous with the worldwide petroleum market. But what does it do, who is involved and how important is OPEC to our day-to-day lives? This article aims to answer these basic questions in a clear and concise fashion.
OPEC is a permanent organisation of 12 countries which are world-leaders in oil production. The primary aim of OPEC is to unify petroleum policies between its member countries, to ensure fair and stable oil prices. OPEC also tries to ensure a steady supply of petroleum to oil consuming nations.
The headquarters of OPEC are found in Vienna, Austria.
Brief History of OPEC
OPEC was created in 1960 at the Baghdad Conference (September 10-14th). The organisation was initially created by 5 nations: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The original headquarters of OPEC were in Geneva, Switzerland until the move to Vienna five years later.
OPEC was, in part, set up in response to the market dominance of the ‘Seven Sisters’; a term coined to describe the major multinational oil companies of the time.
OPEC began to become of international significance in the 1970’s, as the members countries took charge of their respective domestic industries. Collectively, the organisation also became extremely influential in controlling world oil prices.
[pic]
One of the first meetings of OPEC. Image Credit: OPEC - Organization of the Petroleum Exporting Countries
The 1970’s also saw the creation of the OPEC Fund for International Development as the first summit of OPEC leaders concluded that more cooperation was needed between nations in order to keep oil prices stable.
In the 1980’s, cooperation between OPEC and non-OPEC countries vastly improved and environmental policies began to be implemented for the first time. However, a market crash in 1986 meant that oil revenue plummeted and led to tough economic times for several