What is the success of OPEC


Abbreviation for Organization of the Petroleum Exporting Countries; Organization of the Petroleum Exporting Countries; Association of crude oil exporting countries (Iraq, Iran, Kuwait, Saudi Arabia, Venezuela) founded in Baghdad in September 1960 with headquarters in Vienna.

Members: In addition to the five founding countries, Algeria (1969), Qatar (1961-2019), Libya (1962), Nigeria (1971), the United Arab Emirates (1967), Ecuador (1973-1992, again since 2007), Angola (2007 ), Gabon (1975-1995, again since 2016), Equatorial Guinea (2017) and the Republic of the Congo (2018) joined (membership / year of accession in brackets); Indonesia (1962-2008, 2016) and Qatar (1961-2019) are former member states; OPEC is open to net oil exporting countries with similar political interests.

Organization: The supreme body is Conference of Oil Ministers. The management is incumbent on you Board of Governors, in which all members are represented, supported by one office. As a special body with its own state, the Economic Commissionwhose activities are aimed at promoting the activity of international oil prices.

Aim: Common price and quantity policy vis-à-vis the multinational oil companies to increase export earnings.

Importance: The conditions for the success of OPEC as a raw materials cartel were initially favorable. It was possible to increase the oil price from just under US $ 2 per barrel (159 l) at the beginning of the 1970s to over US $ 30 within ten years. The Arab OPEC countries invested a large part of their revenues in the industrialized countries (Recycling of petro-dollars). Since the early 1980s, the influence of OPEC on the price of oil has decreased sharply, as the industrialized countries have been able to reduce their oil dependency considerably and the supply from non-OPEC countries has increased considerably. Heterogeneity of interests led to the agreed funding quotas being exceeded. A drastic production expansion in Saudi Arabia at the beginning of 1986 led to a fall in world market prices to temporarily below 10 US dollars. At the beginning of 2003, for example, the oil price was heavily influenced by the Iraq war. It fluctuated between 34 and 24 US dollars per barrel. Until 2008, the price of oil rose in various spurts to its previous high of around US $ 147. In the wake of the global economic crisis triggered by the financial crisis, the oil price fell well below 50 US dollars per barrel at times. In 2010 OPEC celebrated its 50th anniversary.