What Is The Supreme Authority In OPEC? OPEC In A Changing World
What Is The Supreme Authority In OPEC? OPEC stands for the Organization of the Petroleum Exporting Countries. It is a global group with the stated goals of coordinating its members' petroleum policies and providing economic and technical assistance to its member nations. At a summit held in Baghdad on September 10–14, 1960, the five nations of Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela officially created OPEC.
Jaya MckeownOct 17, 20222 Shares182 Views
What Is The Supreme Authority In OPEC?OPEC stands for the Organization of the Petroleum Exporting Countries. It is a global group with the stated goals of coordinating its members' petroleum policies and providing economic and technical assistance to its member nations. At a summit held in Baghdad on September 10–14, 1960, the five nations of Saudi Arabia, Iran, Iraq, Kuwait, and Venezuela officially created OPEC.
Following that, the following countries were accepted as members: Qatar (1961), Indonesia (1962), Libya (1962), Abu Dhabi (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Angola (2007), Equatorial Guinea (2017), and the Democratic Republic of the Congo (2017). (2018). In the 1970s, Abu Dhabi acquired membership in the United Arab Emirates together with Dubai, Ajmn, Sharjah, Umm al-Qaywayn, Ras al-Khaymah, and Al-Fujayrah, making it the biggest of the seven emirates.
After first joining in 1975, Gabon withdrew in January 1995 before eventually returning in 2016. Between 1992 and 2007, Ecuador stepped out of OPEC, and between 2009 and 2016, Indonesia did the same. After being left alone by other OPEC members for years, Qatar decided to leave the group in January 2019 so it could focus on developing its natural gas reserves.
Because of internal strife, OPEC's influence has diminished. Regional power disputes motivated some of these. Arguments arose about tactics and pricing points for others. According to energy expert Daniel H. Yergin, OPEC's biggest crisis was the 1990 Iraqi invasion of Kuwait. Since its inception in 1973, OPEC's relationship with the USA has been fraught at times.
Since Nixon, every U.S. president has pushed for America to become energy independent. To get the American people to cut down on their gas use, former president Jimmy Carter raised the specter of OPEC. Vice President Biden has pointed the finger at OPEC, saying that the oil cartel is responsible for the skyrocketing price of oil.
Scaremongering from the US about OPEC helps OPEC members who see the group as more of a political club than an economic cartel because it keeps Western diplomats and politicians focused on OPEC and keeps the idea that the group is important.
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The Organization of the Petroleum Exporting Countries (OPEC) was formed to coordinate and unify petroleum policies among its Member Countries to ensure a stable market for petroleum producers; an efficient, economical, and consistent supply of petroleum to consuming nations; and a reasonable rate of return for industry investors.
One-third of OPEC's oil reserves are located in Saudi Arabia, making the country a key player in the group. Iranian, Iraqi, Kuwaiti, and UAE memberships are also noteworthy since their total reserves surpass Saudi Arabia's by a wide margin.
The OPEC Conference is the highest decision-making body in the organization and is in charge of setting the overall strategy. It comprises members from different nations who review the Board of Governors' reports and suggestions. The Board oversees OPEC's operations and is responsible for carrying out the decisions made by the Conference and preparing the organization's yearly budget.
One governor from each member nation attends meetings twice a year. The first meeting of the founding five members of OPEC occurred one month after oil corporations began lowering their prices. In March 2010, the Organization of Petroleum Exporting Countries (OPEC), the International Energy Agency (IEA), and the International Energy Forum (IEF) all agreed to expand their collaboration and joint work program.