OPEC / International economic organization

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OPEC is an acronym for "Organization OF the petroleum Exporting Countries" (organization of oil exporting countries). Was created the organization in the period of 10. until 14 September 1960 in Bagdad.

Since 1965 the trust has its seat in Vienna. The original members were Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Later further six states followed: Qatar (1961), Indonesia (1962), Libya (1962), which combined Arab emirates (1967), Algeria (1969) and Nigeria (1971). Ecuador was from 1973 to 1992 member and Gabon from 1975 to 1994.

The OPEC member states promote about 40% of world-wide oil production and have three quarters of the world-wide However some experts (among other things Matthew Simmons) assume that the data are not applicable to the reserves for instance from Saudi Arabia. After all not OPEC States of their promotion maximum (see: ) It crossed peak oil, is to be expected that the influence of the OPEC rises. Among the 10 world-wide largest oil promoters only Saudi Arabia, Iran, is Venezuela, VAE. See also: Oil/tables and diagrams

Organs and sphere of influence

During excess of the fixed ratios the OPEC can introduce sanctions. The organization functions as follows: Twice annually meet the Minister of the OPEC responsible for energy and oil to the conference of ministers to secure in order to judge the conditions of the oil market and appropriate measures introduce, which serve for it, the offer at oil. This conference gives afterwards the new guidelines to price. The OPEC secretariat implements the executives functions. The tasks of the research within the range energy and finances are subject to it. In addition statistics are provided and published. Also lectures and seminars are field of the secretariat. It has also a large library, which stands for the representatives of the member states as well as researchers and students openly. The secretariat is financed by contributions of the member states. The representative of the OPEC is the Secretary-General, who is also director/conductor of the secretariat. This is selected either for three years or appointed alphabetically by the rotation principle for two years. Departments of the secretariat are: Research, energy studies, economics and finances, data service, personnel and administration, OPECNA (OPEC news Agency), office of the Secretary-General and right.

Goals

The goal of the OPEC is common oil politics to secure itself among other things in order against a price purge. Oil production is to be regulated by the definition of promotion ratios for the individual OPEC members and thus, by an artificial shortage or an increase of the oil production in the member countries, which price for oil are pressed, stabilized or raised. However it also occurs the fact that individual members do not adhere their own economical and political to the determined promotion ratios separate goals pursues.

History

During the 1950er years dropped the oil price because of the development of always new sources and the associated offer in excess on the world market continuously, which led to heavy losses in the treasuries of the oil producing countries. Around 1960 several were from them therefore in serious household crises. In this situation Saudi Arabia energized the establishment of a promotion trust. It should not only control the delivery, but also a counterweight to the large oil companies to form, which to a large extent gained their profits on the basis of contracts from the colonial age without participation of the states, on their area the sources of oil were.

On 14 September 1960 the OPEC in Bagdad was created. Their first members were Iraq, Iran, Kuwait, Saudi Arabia and Venezuela. As first measures became a large nationalization of the sources of oil, which agrees upon the future agreeing upon of the deliveries and a increased taxation of the oil companies. The latter should open a pecuniary resource independent of the delivery. First the OPEC remained to a large extent ineffectively and also world-wide as a little powerful was estimated, particularly since she covered only a small part of the producing countries.

1965 became Vienna the seat of the OPEC. The countries agreed upon common promotion politics for the supporting of the prices.
1970 were decided a rise of the crude oil prices around 30% and the taxes of the oil companies on at least 55% of net receipts was raised.
1971 was raised after negotiations with other oil companies the crude oil prices. The OPEC continued to aim at a state portion of over 50%. The nationalization takes place only 1974.
1973 rose the oil price of 1972 2,89 US-$ per barrel to 11,65 dollar, after the OPEC had proclaimed an oil boycott as reaction to the Jom Kippur war in relation to western states. At this time the OPEC states promoted 55% of world requirements at oil. This period becomes as 1. Oil crisis designates.
1974 to 1978 the oil prices were usually increased half-yearly by 5 to 10%, in order to compensate the inflation US Dollar.
1975 taking of hostages in the Viennese OPEC main building by terrorists under guidance of Carlo
1979 came the 2. Oil crisis. After the Islamic revolution the oil price was raised of 15,5 on 24 US Dollar per barrel, Libya, Algeria and the Iraq even required 30 US Dollar for their oil.
1980 were the high point of the high price strategy of the OPEC, Libya required 41 US Dollar, Arabia 32 and the remaining OPEC States of 36 US Dollar per barrel.
1981 were reduced the oil paragraph. The industrial nations were in recession and due to the 1. Oil crisis and the high petroleum prices invested many countries into alternative energy sources, which lowered the world-wide oil consumption around 11% and the OPEC Weltmarktanteil on 40% in the years 1978 to 1983.
1982 were decided a Produktionsdrosselung, which was not kept however. The OPEC portion of the world oil production sank on 33% and 1985 on only 30%, the promotion lowered itself on the lowest value of 17,34 millions barrels per day.
1983 the oil prices of 34 to 29 US Dollar per barrel were lowered, the promotion ratio was lowered of 18,5 on 16 millions barrels per day. The trust OPEC lost power.
1986 fell the price because of world-wide overproduction at crude oil and the attempt of some OPEC states to improve their world market position by price reductions on less than 10 US Dollar per barrel. By this strong price purge the OPEC in a crisis, which caused the Ministers to it, was 1988 also conferences with the states of the IPEC, the "Independent petroleum Exporting Countries" to lead. These had however no large effect.
1990 were increased the standard price of 18 to 21 dollar per barrel. The price goal was reached only due to the Gulf War and the invasion of Kuwait.
In the years 1990 to 1994 the delivery was increased by 8,5 per cent, nevertheless the incomes by the oil export of on the average 143 billion to 126 billion dollar per year sank.
The oil price lies in April 2005 with approximately 55 dollar per barrel. The US oil prices have the record high of 66 dollar on 11 August 2005 erklommen. The reason lies mainly in the Chinese restaurant boom. 1990 exported China five times more oil than it introduced. Starting from 1993 China more oil than it imported implemented. Since 2003 it imports more crude oils than Japan. 2004 imported the realm of the center 120 million tons crude oil and petroleum products. The OPEC estimates that in the next 30 years approximately 23% of demand growth will proceed after oil from China.
South Korea suggested creating as counterweight to OPEC power the union of the oil-importing countries.