The World 's Oil And Its Impact On The Economy

1926 Words Apr 12th, 2016 8 Pages
powerful group because it controls 80% of the world’s oil and therefore is extremely influential in country’s economic system. The policies developed by OPEC directly affect the production of oil globally. It was formed at the Baghdad Conference in 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Venezuela alone harbors 20% of the world’s oil. As OPEC memberships of countries were suspended other countries joined. Today, 13 member countries: Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. These countries bare the unalienable right to manage their natural resources in the interest of their progress as a nation under the “Declaratory Statement of Petroleum Policy in Member Countries” adopted by OPEC in 1968. OPEC aims to “co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry” (OPEC). The OPEC Statute distinguishes between countries that founded the organization and those countries whose application was accepted. The statue goes as follows “any country with a substantial net export of crude petroleum, which has fundamentally similar interests to those of Member Countries, may become a full member of the organization, if accepted by a majority of three- fourths of Full…
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