1. Sources Belousova Anna
http://www.opec.org/opec_web/en/ Chuhareva Elena
http://articles.economictimes.indiatimes.com/keyword/opec Sinelnikova Alla
http://www.eia.gov/ IFF 3-1
ttp://www.valuewalk.com/
The Organization of the
Petroleum Exporting Countries
2. What is OPEC?
• the Organization of the Petroleum
Exporting Countries
• an intergovernmental organization of
twelve oil-producing countries made up
of
Algeria, Angola, Ecuador, Iran, Iraq, Kuw
ait, Libya, Nigeria, Qatar, Saudi
Arabia, the United Arab Emirates
• executive organ – the Secreteriat
• Secretary General - Abdalla el-Badri
• policy decisions are taken by consensus
at its Vienna headquarters
• the OPEC Statute distinguishes between
the Founder Members and Full Members
- those countries whose applications for
membership have been accepted by the
Conference
3. OFID
• OPEC Fund for International Development
• resources consist mainly of voluntary contributions by
OPEC MCs and income derived from OFID’s
investments and loans (interest and service charges)
• LDCs and other low-income countries are accorded
priority
• Promotion of South-South solidarity
• 3 regular grant programs:
Technical Assistance, Research and
Similar Activities,Emergency Relief Aid
4. The goals of OPEC
• OPEC was formed to administer a common policy
for the sale of petroleum (dictionary definition)
• the mission of OPEC is to coordinate and unify the
petroleum policies of its Member Countries and
ensure the stabilization of oil markets in order to
secure an efficient, economic and regular supply
of petroleum to consumers, a steady income to
producers and a fair return on capital for those
investing in the petroleum industry (according to
the OPEC Statute)
5. History
• 1960 - Baghdad
Conference
• 1965 – headquarters move
to Vienna
• 1968 - Declaratory
Statement of Petroleum
Policy in Member
Countries’ in
• 1973 – Arab Oil embargo
• 1976 – OFID
• 1980-ies – oil glut
• 1986 – oil glut peak
• 1990-91 Gulf War
7. Forecast
Based on projections from the EIA May 2012 Short-Term Energy Outlook
(STEO), members of the Organization of the Petroleum Exporting
Countries (OPEC) could earn an estimated $1,154 billion of net oil export
The U.S. Energy revenues in 2012 and $1,117 billion in 2013. Last year, OPEC earned
Information $1,026 billion in net oil export revenues, a 33 percent increase from 2010.
Administration (EIA) Saudi Arabia earned the largest share of these earnings, $311
http://www.eia.gov/ billion, representing 30 percent of total OPEC revenues.
8. OPEC today
• increased production has led to an over supply of crude oil in the
world market, also boosted by increased production from non-OPEC
members (Russia, Canada)
• political tensions caused by Western sanctions against Iran
• markets also remain shaken by worries about the eurozone after
elections in Greece and France, and debt crisis as such
• Chinese growth is less than predicted (8.2%<8.5%)
• long-seated problems: civil strife in Nigeria, civil war in
Libya, corruption in Angola
• weak economic performance in developed nations
9. Conclusion
1. Is the goal of OPEC creation reached?
OPEC can provide the market with the oil it
needs and it is doing that quite efficiently.
But there is little it can do in terms of
price control which are driven high by
speculators.
10. Conclusion
2. What are the obstacles to efficient
functioning?
Political disputes among the members of
OPEC, inner problems of many members
(civil wars, etc.) instability
11. Conclusion
• 3. Advantages & disadvantages
Advantages Disadvantages
• Economic: • Political:
• Oil supply and • Inner
prices (to lesser disagreements
extent) control • Interdependance
• Enables economic with Asia (i.g.
growth China) and Western
• Ensures market countries (US, EU)
stability
