What is OPEC?

Lyubov Polishchuk
Lyubov Polishchuk
March 26, 2013
What is OPEC?

The Organization of Petroleum Exporting Countries (in English: The Organization of Petroleum Exporting Countries, abbreviated as “OPEC”) is the name of OPEC. To understand what OPEC is, its status helps: it is an international intergovernmental group founded by oil-producing countries in order to stabilize oil prices.

The Secretary General of the cartel since 2007 is Abdullah Salem al-Badri. In accordance with OPEC's proven oil reserves, the organization currently has 1.199.7 billion barrels.

OPEC countries

The composition of the organization is determined by the entry into it of 12 countries: Iraq, Iran, Kuwait, Saudi Arabia, Qatar, Venezuela, Libya, the UAE (United Arab Emirates), Algeria, Nigeria, Ecuador and Angola.

The main goals of OPEC are:

  • coordination of the working process and development of a common policy regarding the issue of oil production between the member countries of the organization
  • maintaining a stable price level for oil;
  • ensuring stability in the process of supplying oil to its customers;
  • receiving returns from investments in the oil industry.

The ministers of oil and energy of the OPEC member countries organize meetings twice a year to assess the international oil market and forecast its future development. Such meetings end in making decisions about actions that are necessary to stabilize the market. A number of decisions regarding changes in oil production, taking into account changes in demand in the market, are determined and adopted at OPEC conferences.

Under the control of the countries, members of OPEC are about 2/3 of world oil reserves, which is about 40% of the world production of this natural resource, or half of all world oil exports.

Among the largest producers "Peak of Oil" has not yet been passed only by Canada and OPEC countries (the exception is Venezuela).

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