The Organization Of Petroleum Exporting Countries

OPEC was founded in 1960 with 5 counties and the goals to be a dependable oil market for themselves, and to stimulate economic growth in other countries. Leading up to the 1970’s OPEC’s growth and business was relatively unnoticed until an Iranian revolution and Arab oil embargo pushed oil prices to new levels. Changing consumer opinions about oil and over supply led to a market crash in 1986; but from 1990 through to 2000 prices strengthened from increases in technology and a more global market. In 2008 the stock market crisis rippled through all industries and even caused the oil market to suffer. Oil prices then rebounded and at June 2014 oil prices set a record high. OPEC currently has just under 40% of the market share and

Aramco, an oil company based out of Saudi Arabia, developed the idea that, “if you produce a lot of oil at once, price goes down and more workers get paid which leads to less profit”. Aramco then realized they needed to step away from the free-market and start to operate through a monopolistic sense. Mohammad Massadegh, the first democratic leader of Iran, wanted oil profits. Mohammad planned to use though profits efficiently through helping Iran. Retaining oil profits for Iran put their economy in much better shape. After Mohammad, Reza Palavi stepped in and was eventually overthrown due to reinstating profits for oil. On the other side, Iraq and Saudi Arabia nationalized oil in 1972 which eventually lead to Saudi Arabia taking full control over Aramco. OPEC, created in 1960 to generate tax revenues and “even the playing field”, goal was to build help stabilize world oil prices. In hindsight the Saudi connection was built on indirect and economic imperialism.

Nonetheless, the countries that export a lot of oil will attempt to stabilize their economy by reminding the world’s population that they are very dependent on oil for producing electricity, consumer products, and fuel.

Upstream is the segment focused on oil and natural gas exploration, field development and production, midstream transportation, storage and processing, the marketing and trade of natural gas and oil. Five functions come into play to have this segment work in 25 countries, as of 2015. According to BP’s 2015 Annual Report the exploration function is responsible for renewing BP’s resources through access, exploration, and appraisal. The reservoir development is responsible for the protection of BP’s resource portfolio for each field they own. The global wells organization and global projects are responsible for drilling and completion of major projects. The global operations organization is responsible for operations such as processing activities, and upstream production assets.

Initially, the organization began in Europe in 1948 (OEEC) in France to help administer the Marshal Plan for reconstructing Europe after WWII. Its membership was extended to non-European states in 1961, when it was renamed the OECD. Most members are high-income economies with a high HDI index, and are regarded as developed nations (Chile being the exception). Headquarters are in Paris. In the 1950’s, the OEEC provided the framework for negotiations to created a European free trade area to bring members together on a multilateral basis.

Once fossil fuels had solidified its status not only as a valuable commodity but also the substance that lubricates the gears of capitalism, several key petroleum exporting countries (Iraq, Iran, Venezuela, Saudi Arabia and Kuwait) unified to

Consisting of 12 producers of oil and exporting countries Organization of the Petroleum Exporting Countries (OPEC) is one of the intergovernmental organization. Three continents over which the organization is spread is Asia, America, and Africa.12 oil producing countries in the organization are as follows: America, Asia and Africa. These12 countries are: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates and Venezuela. The present headquarters of the organization is located in Vienna Austria. During the initial stage, Geneva was the headquarters of the organization.

OPEC stands for Organization of the petroleum Exporting countries. It is an intergovernmental organization of fourteen nation. It coordinates petroleum policies and stabilize the oil market. This will help them secure regular supply of petroleum in order to keep a study income and growth. Petroleum have become one of the most powerful asset or natural resource that any nation could have. And because it’s so Important it has changed the world for the good and worst. Petroleum has lead into wars and it has also tightened international relationships. One of the reason, that there are some kayos in some part of the middle east is because of Petroleum. OPEC is founded in Bagdad its head quarter is in Vienna. Two third of OPEC population is founded in the middle east countries that surround the Persian Gulf. The most Important goal for OPEC is to make profit for the members. Because there is no real substitute for oil, OPEC reduces production and then increases Price for oil. Because it’s hard to control all countries production, especially the countries that are not a member of OPEC , it has been hard for OPEC to have firm a control over the Petroleum market. Because the Petroleum Industries are Oligopoly this relates to chapter 13 which is Oligopoly and Strategic Behavior. OPEC is a cartel which mean one of its main goal is to control the production and aim for profit

 The OPEC (Organization of the Petroleum Exporting Countries) created in 1960 is a permanent intergovernmental Organization. Was formed at the conference held in Baghdad. The five founders Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Later down the road they were joined by nine other countries. Qatar, Indonesia,  Libya, United Arab Emirates,  Algeria,  Nigeria, Ecuador, Angola, and Gabon.

Major shifts in OPEC policy-OPEC majorly accounts for a large percentage in the world’s oil supply and continues to have the capacity to be the leading producer in the global market if it so wishes. Its major producers have used spare capacity to regulate supply of oil and therefore stabilizing prices within a desired price bracket as a result of this policy and the increasing unconventional oil production, OPEC’S .

Organization of the Petroleum Exporting Countries has competition with the United States shale industry, so they are

The Organization of Petroleum Exporting Countries (OPEC) , is a permanent intergovernmental Organization, created at the Baghdad Conference on September 14 th, 1960, consisting of the world's major oil-exporting nations. It was founded to coordinate and unify the petroleum policies of its members, to serve as a platform for oil producers to achieve their economic objectives by limiting supplies in the hope of keeping prices and profits high. OPEC's influence on the market is undeniable. Because its member countries hold the vast majority of crude oil reserves (about 80%) and nearly half of natural gas reserves in the world, the organization

To be able to full discus and understand this topic it is important to understand the players involved first. The oil industry relies on the Organization for Economic Co-Operation and Development countries (OECD) and the Organization of Petroleum exporting Countries (OPEC). The G7 or the Group of Seven are considered to be part of the OECD. These are the developed countries of Canada, France, Germany, Italy, Japan, United Kingdom, and the United States. The OPEC countries are, however, the 12 developing countries of Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria,

The topic I chose for our assigned is Organization of Arab Petroleum Exporting Countries (OAPEC). The reason for this topic is because of how valuable oil is to the world and how much we are depended on it. For the Middle East, the “majority of economic growth and stability depends upon the natural resource of oil.” (Satterlee, B. C. 2014). However, there is always a conflict and partnership concerns for nations not in the region as the world dependency on this natural resource is only increasing.

The Organization for European Economic Co-operation (OEEC), was established by the Marshall plan to coordinate the American and Canadian aid for reconstruction of Europe in 1948. Since then and as an extension for the with the convention on the Organization for Economic Co-operation and Development, the OECD an international economic organization was established in Paris, on the 14th of December 1960 with the aim of building strong economies in its member countries, and contribute to development in industrialized as well as developing countries. Nowadays, the OECD is trying to expand their missions and agenda to include cooperating according to the requirements of the market economy. Particularly to help the countries which are making their transition from centrally-planned to capitalist systems. The founding member countries of the OECD include a list of some of the biggest economies in the world such as the United States of America. Other founding members include other countries such as most of the European Countries, Turkey and Japan. Today, the OECD includes up to 34 verity of countries including countries from Latin America, such as Chile that got accepted as a member in 2010.