1. Rajita Sanji & Devi Modha AP Comparative & Politics | 3B

3. Purpose & Aims Coordinate and unify petroleum policies Sustain stability Eliminate fluctuations Secure a steady income for members Promote prosperity Protect the environment

4. Important Documents The Statute Basically outlines the goals, the structure, and the way in which OPEC functions. Organization and Objectives Membership The Conference The Board of Governors The Secretariat Consultative Meetings and Specialized Organs Financial Provisions Additional Provisions Amendments

5. History: 1960s Created: Baghdad Conference 5 countries came together, a time of decolonization Oil market controlled by multinational companies ‘Declaratory Statement of Petroleum Policy in Member Countries” Inalienable rights of each country involved, control of own natural resources. Now Headquartered in Vienna, Austria

6. History: 1970s Grew internationally, gained importance Two occasions in which oil prices rose significantly Arab oil embargo in 1973 Iranian Revolution in 1979 1975 Head of State and Government in Algiers Addressed poorer nations’ issues, called for international help and cooperation Establishment of OPEC Fund for International Development in 1976 Added more members (Total = 13 by 1975)

7. History: 1980s Prices crashed in 1986, caused severe hardship for many countries (Iran-Iraq War) Prices increased in the end of the decade Production ceiling introduced and divided by Members Reference Basket for pricing introduced More cooperation from all members in OPEC as well as all non-OPEC members Environmental issues = new problem Total = 13 members

8. History: 1990s Prices relatively stable More integrated oil market Post-Soviet world = greater regionalism, globalization, communications, technology Iraq and Kuwait both involved in Persian Gulf War Prices would fluctuate but OPEC controlled situation – remained stable Prices moved less dramatically than in the 1970s and 1980s Timely action reduced the market impact of regional hostilities in 1990–91. Environmentally-friendly movement Sought fairness, balance and realism in the treatment of supply One country left OPEC, while another suspended its Membership. Total= 11 members

9. History: 2000s Prices dropped in 2008 and then crashed Indonesia suspended membership January 2009 Total= 12 members in 2012

10. Membership Original 5 nations Iran Iraq Kuwait Saudi Arabia Venezuela Other members Qatar (1961) Indonesia (1962) – suspended its membership in January 2009 Libya (1962) United Arab Emirates (1967) Algeria (1969) Nigeria (1971) Ecuador (1973) Angola (2007) Gabon (1975–1994) Current total = 12 members Terms of entry: any country with a substantial net export of crude petroleum, must be accepted by a majority of ¾ of Full Members and Founding Members.

11. Leadership Secretariat Chief Executive arm of OPEC President – Rostam Ghasemi Consists of leaders who specialize in data services, research, petroleum studies, and public relations OPEC Conference Has supreme authority Ministerial-level delegation from each Member Country Meets twice a year – March, September Principle of unanimity Board of Governors reports to the Conference – budget, recommendations Board of Governors Nominated by Member Countries and confirmed by the Conference Directs management of Secretariat, implements Conference resolutions, draws up budget (that the Conference approves), submits reports and recommendations to Conference.

12. Leadership cont’d Ministerial Monitoring Sub-Committees Heads of Delegation Representatives of each Member Country to the Conference - normally the Minister of Oil or Energy Economic Commission Board Research-oriented department. Secretary General – Abdallah el-Badri Appointed by the Conference, three year term which can be renewed once

13. Leadership: Secretary General Internal Auditor Office of the SG Abdullah al-Shameri Helps the SG execute, manage, plan and guide policy Maintains close relations with Austrian government Legal Office Asma Muttawa – headed by General Legal Counsel Advises SG, supervises Secretariat’s legal affairs Research Division Dr. Hasan M. Qabazard Plans and coordinates all research efforts within Division Support Services Division Provides infrastructure needed to implement services

14. Leadership: Research Division Environmental Matters Unit Data Services Department Petroleum Studies Department Energy Studies Department

15. Support Services Division PR & Information Department Finance & Human Resources Department Administration & IT Services Department

17. Membership Advantages Disadvantages 1973 Energy Crisis Yom Kippur War, fourfold increase in the price of oil, five months Raised crude oil prices by 10%, nationalized oil industries Power to control oil prices Use this control for own political interests Secure a steady income for nations Collective security But each country has independence, to make its own decisions Power to suspend own membership Limit competition among themselves Criticized for having short term policy plans and changes that cause fluctuations or worsen them

18. International Impact OFID OPEC Fund for International Development - promotes cooperation between OPEC Members and other developing nations, helps the poorer non-OPEC countries Active in Africa, Asia, Latin America Provides clean water, builds schools, hospitals and roads, farming and trade opportunities

20. OPEC: Iran & Russia Iran Is a (Founding) member: Baghdad Conference Gained dominance from Saudi Arabia, 2011 New powerhouse USA has no influence on OPEC Russia Not a member Chechnya – primarily Muslim dominated, fought for freedom Yukos Oil – Khodorkovsky arrested in 2003, company trying to protect itself from being dismantled Rosneft – Sechin, oil fields and other assets from Yukos Nomenklatura Economy is fueled by its huge oil and gas reserves Mostly state owned Attempts to keep economy from declining Putin has prioritized diversifying the economy but oil and energy continue to be vital resources

21. OPEC: Mexico & Nigeria Mexico Not a member “Mexican Miracle” – rapid growth based on oil Mexico’s production increased as OPEC’s decreased PEMEX – a para-statal, government owned but privately managed After 1980s oil bust, para- statals have dwindled Fox and Calderon tried privatizing it but did not succeed Nigeria Is a member Both a major consumer and producer of oil No successful policy of adding value to the crude oil Spends more money on oil than necessary America’s fifth largest oil supplier, world’s eighth largest oil exporter Economic dependence on oil - the country’s good fortune has been a liability in its quest for political and economic stability. Corruption: enriched the elite. Other sectors in economy are ignored Movement for the Emancipation of the Niger Delta protested the environmental devastation caused by the oil industry – 2002, 2006 Oppressed by the government

22. Works Cited "Home." OPEC: Organization of the Petroleum Exporting Countries. Web. 21 Mar. 2012.. "OPEC: FAQs." OPEC: Organization of the Petroleum Exporting Countries. Web. 21 Mar. 2012.. "OPECORGANIGRAM." OPEC: Organization of the Petroleum Exporting Countries. Web. 21 Mar. 2012.. "Saudi Arabia Lost Its Dominance in OPEC, Iran Is New Powerhouse: Analysts." Payvand.com. 10 June 2011. Web. 22 Mar. 2012..