OPEC: Organization of Petroleum Exporting Countries

What is OPEC? OPEC is a permanent intergovernmental organization consisting currently of 12 Member Countries located across the continents of Asia, Africa, and America.

OPEC Founded in 1960 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.

Member Countries 1960: Founding Members: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Qatar (1961); Indonesia (1962) – suspended its membership from January 2009 Socialist Peoples Libyan Arab Jamahiriya (1962) United Arab Emirates (1967) Algeria (1969) Nigeria (1971) Ecuador (1973) – suspended its membership from December 1992-October 2007 Angola (2007) Gabon (1975–1994).

OPEC Headquarters OPEC had its headquarters in Geneva, Switzerland, in the first five years of its existence. This was moved to Vienna, Austria, on September 1, 1965. OPEC Headquarters in Vienna, Austria

Goal # 1: OPEC seeks to ensure the stabilization of oil prices in international oil markets, with a view to eliminating harmful and unnecessary fluctuations

Goal #2: To keep the interests and secure a steady income for the oil-producing Member Nations. Last year, OPEC earned $573 billion in net oil export revenues, a 41 percent decrease from 2008. Saudi Arabia earned the largest share of these earnings, $154 billion, representing 27 percent of total OPEC revenues. Based on projections from the EIA January 2010 Short-Term Energy Outlook (STEO), members of the Organization of the Petroleum Exporting Countries (OPEC) could earn $767 billion of net oil export revenues in 2010 and $833 billion in 2011.

Goal # 3: OPEC’s role in overseeing an efficient, economic and regular supply of petroleum to consuming nations. 2004 Supplies

Goal # 4: Ensure a fair return on capital to those investing in the petroleum industry. New York Stock Exchange

OPEC’s impact on what we pay??? The impact of OPEC output decisions on crude oil prices must be considered separately from the issue of changes in the prices of oil products, such as gasoline or heating oil. There are many factors that influence the prices paid by end-consumers for oil products. In some countries, taxes comprise 70 per cent of the final price paid by consumers, so even a major change in the price of crude might have only a minor impact on consumer prices.

Other things that OPEC does… OPEC established the OPEC Fund for International Development (OFID) in January 1976 (originally called the ‘OPEC Special Fund’) to promote cooperation between OPEC Member Countries and other developing states. In particular, OFID aims to help poorer, low-income non-OPEC countries in their pursuit of social and economic advancement. OFID is active in many regions, including Africa, Asia, Europe and Latin America. It has supported a wide range of projects, from providing clean water and energy to remote communities, to building schools, hospitals and roads and developing industry, farming and trade opportunities. Since its establishment, it has made commitments totaling nearly US $10.1 billion, two-thirds of which have already been disbursed.

What is OPEC’s attitude towards fuel-efficiency? OPEC fully supports technological improvements that make transportation cleaner, safer and more efficient. The Organization would like more people to enjoy the benefits of personal mobility in an environmentally sustainable manner. OPEC has always recognized that crude oil is a finite resource. By managing its production, the Organization aims to enable many generations to benefit from its use. During the 20th century, oil dramatically transformed the world for industrialized countries. Increasingly, it is doing the same for developing countries. Technologies that enhance fuel efficiency are, therefore, welcome.

Does OPEC support environmental policies? OPEC is concerned about the environment and wants to ensure that it is clean and healthy for future generations. In fact, all OPEC Member Countries have ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change. OPEC considers that the development of technology is important for limiting or reducing greenhouse gas emissions. OPEC is looking to participate in international collaborative efforts in research and development programs geared at improving carbon capture and storage technology. OPEC Member Countries are also investing heavily to improve the environmental credentials of oil by tackling gas-flaring and promoting safer and cleaner drilling, transportation and refining processes. In addition, OPEC participates in many international meetings to remind governments and others debating environmental policies that they must consider the needs of developing countries, especially those that rely on oil for their income.

Political Cartoons…WHAT ARE THEY TRYING TO SAY ???

All information was acquired from www.opec.org