If you have read any of our blogs here at Guttman Energy, you may have noticed the word or acronym OPEC thrown around a handful of times. What exactly does it mean? How long has it been around? Who is a part of OPEC? These are some questions that will be answered today.
What does OPEC mean?
OPEC stands for Organization of the Petroleum Exporting Countries
What exactly is OPEC?
“OPEC is a permanent intergovernmental organization of 14 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.”
How long has OPEC been around?
OPEC was created on September 10-14, 1960 during the Baghdad Conference. It was created by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
What countries make up OPEC as of June 2018?
Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Libya, the United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon, Angola and Equatorial Guinea. Indonesia was a member of OPEC but suspended their membership on November 30, 2016.
What is OPEC’s objective?
“OPEC’s objective is to coordinate 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.”
Some quick facts about OPEC:
“OPEC members collectively supply about 44.1% of the world’s crude oil production.”
“Together, OPEC members control about 81.5% of the world’s total proven crude reserves.”
“OPEC member countries monitor the market and decide collectively to raise or lower oil production in order to maintain stable prices and supply.”
So, there you have it. A quick guide about OPEC and what it really means.