OPEC

Abbreviation of "OPEC", we often come across in the news, and no wonder - because this rganizatsiya today has a significant influence on the world price of "black gold." OPEC - is an Organization of Petroleum Exporting Countries (English OPEC, The Organization of the Petroleum Exporting Countries), founded in 1960. Its headquarters was initially located in Geneva, but in 1965 was moved to Vienna.

At the time of foundation of OPEC in the market there was considerable excess of the proposed petroleum, the occurrence of which was due to the start of development of the giant oil fields - especially in the Middle East. In addition, the market was the Soviet Union, where from 1955 to 1960 doubled its oil production. This abundance has caused serious competition in the market, leading to a steady decline in prices. This situation was the reason for combining several oil-exporting countries of OPEC, to stand together against transnational oil corporations and maintain the price level.

Originally part of an organization comprised of Iran, Iraq, Saudi Arabia and Venezuela. Then they were joined by Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, Gabon and Angola. Ecuador left OPEC in 1992, but returned in 2007. Gabon left the organization in 1994. As a result, today the 13th-OPEC countries.


Organization officially has the following main objectives:

protect the interests of its members;
ensure stability of prices for oil and oil products;
ensure a regular supply of petroleum to other countries;
guarantee of the Organization of stable income from the sale of crude oil;
identify strategies of production and sale of oil.
In the early years of the OPEC failed to realize its goals. But the situation changed in 1973, when Egyptian and Syrian forces attacked Israeli positions. In this war, known as Yom Kippur, the Western world has supported the Israeli side. In response, OPEC announced the first embargo restricting oil exports to Western Europe and the U.S., which was the cause of the first in the world history of the oil crisis. Just six months to the beginning of 1974, oil prices have jumped by 130% to $ 7 per barrel by the end of 1979 were already 18 per barrel. The crisis is so strengthened the position of the organization, that the middle of the 70's was the "golden age" of OPEC. However, the West began to establish closer ties with the Soviet Union, which actively increasing the supply of oil. In addition, international oil companies are shifting their focus to other important oil regions, such as the North Sea and the Gulf of Mexico. The embargo also contributed to the early development of the giant Prudhoe Bay field in Alaska, with initial oil reserves in excess of 1.3 billion tons (9.5 billion barrels).


OPEC position gradually weakened. In the 1980s, oil prices have been declining. In 1981, it reached $ 40 per barrel, after five years the level close to $ 10 a barrel. Iraqi President Saddam Hussein called on OPEC to increase the selling price, which caused the Gulf War in 1990-1991. Iraq's invasion of Kuwait and the ensuing crisis of the Persian defeat of OPEC unity and impact on oil prices, which rose to $ 30 a barrel. As soon as the fear of a lack of oil caused by these military conflicts, lifted, prices headed down. In 1998, OPEC countries have removed all restrictions on the production and export, which is bound to affect the state of markets - prices again fell below $ 10 a barrel.

To solve the problem, it was proposed to reduce the production of "black gold" - the initiative to the President of Venezuela, Hugo Chavez. In 2000, Chavez gathered Summit of OPEC for the first time in 25 years. However, the terrorist attacks of 11 September 2001 in the U.S., and the invasions of Afghanistan and Iraq have caused a sharp rise in oil prices, which allowed far exceed the performance, which would make the members of OPEC.

Minister of Energy and Petroleum of the OPEC members meet twice a year to assess the state of the international oil market and decide on necessary actions to stabilize the market and make predictions for the future. The production volumes, which vary according to the dynamics of demand in the market, adopted by the Conference of OPEC.

Today, members of organizations control about two-thirds of proven oil reserves on the planet. OPEC accounts for 40% of global production and half of world exports of the precious raw material. The organization coordinates policy and global oil pricing of crude oil, and sets quotas for the production of oil. And despite the common belief that OPEC time passed, it still remains one of the most influential players in the global oil industry, determining its further development.