What issues does the international organization of guardianship. Opec: goals, objectives, headquarters, history of creation, Secretary General

The prerequisite for the creation of the Organization of Petroleum Exporting Countries (OPEC, the original abbreviation in English is OPEC) was the inability of the states of the Middle East region and the Middle East to independently resist the neo-colonial policy pursued contrary to their interests, as well as the oversaturation of the world market with oil. The result is a sharp decline in prices and a steady downward trend. Fluctuations in the cost of oil became tangible for established exporters, were uncontrollable, and the consequences were unpredictable.

To avoid a crisis and save the economy, representatives of the governments of the interested parties of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad (September 10 - 14, 1960), where they decided to establish the Organization of the Petroleum Exporting Countries. Half a century later, for the world economy, this association remains one of the most influential, but no longer the key. The number of OPEC countries changed periodically. now this 14 oil producing states.

Historical reference

Before the Baghdad Conference, the prices for "black gold"; dictated by the oil cartel of the seven oil companies of the Western powers, called the "seven sisters". By becoming members of the OPEC association, the member countries of the organization could jointly influence the pricing and volume of oil sales. The history of the development of the organization in stages is as follows:

  • August 1960 The price drops to a critical level after new players (USSR and USA) enter the oil arena.
  • September 1960 A meeting of representatives of Iraq, Iran, Kuwait, Saudi Arabia, and Venezuela is held in Baghdad. The latter initiated the creation of the OPEC organization.
  • 1961-1962 entry of Qatar (1961), Indonesia (1962), Libya (1962).
  • 1965 Beginning of cooperation with the UN Economic and Social Council.
  • 1965-1971 The membership of the association was replenished due to the entry of the United Arab Emirates (1965), Algeria (1969), Nigeria (1971).
  • October 16, 1973 Introduction of the first quota.
  • 1973-1975 joining the organization of Ecuador (1973) and Gabon (1975).
  • 90s. Withdrawal from OPEC of Gabon (1995) and voluntary suspension of participation of Ecuador (1992).
  • 2007-2008 Ecuador reactivation (2007), suspension of Indonesia membership (became importer in January 2009). Joining the Union of Angola (2007). The Russian Federation becomes an observer (2008) without obligation to obtain membership.
  • 2016 Indonesia renewed its membership in January 2016, but decided to suspend its membership again on November 30 of that year.
  • July 2016 Gabon re-joined the organization.
  • 2017 accession of Equatorial Guinea.

In the 10 years since its founding, OPEC members have experienced a rapid economic recovery, peaking in 1974-1976. However, the next decade was marked by another drop in oil prices, and by half. It is easy to trace the relationship of the described periods with turning points history of world development.

OPEC and the world oil market

The object of OPEC's activity is oil, and to be precise, its cost. Opportunities provided by the joint management of the oil products market segment allow:

  • protect the interests of the states that are members of the organization;
  • ensure control over the stability of oil prices;
  • guarantee uninterrupted supply to consumers;
  • provide the economies of the participating countries stable income from oil production;
  • predict economic phenomena;
  • develop a unified strategy for the development of the industry.

Having the ability to control the volume of oil sold, the organization sets itself precisely these goals. Now the level of production by the participating countries is 35% or 2/3 of the total. All this is possible thanks to a well-built, well-oiled mechanism.

OPEC structure

The community is organized in such a way that the decisions made do not interfere with the interests of any of the OPEC member countries. The structured scheme, taking into account the significance of divisions, looks like this:

  • OPEC conference.
  • Secretariat with general secretary at the head.
  • Board of Governors.
  • committees.
  • Economic Commission.

The Conference is a meeting, held twice each year, at which ministers of OPEC member countries discuss key strategic aspects and make decisions. Representatives are appointed here, one from each incoming state who form the board of governors.

The secretariat is appointed as a result of the meeting of the commission, and the task of the general secretary is to represent the position of the organization in interactions with other associations. Whatever country is included in OPEC, its interests will be represented by one person (Secretary General). All his actions are the product of decisions taken by the management of the organization after a collegiate discussion at the conference.

Composition of OPEC

OPEC includes countries whose financial well-being directly depends on fluctuations in the global oil market. Any state can apply. To date, the geopolitical composition of the organization is as follows.

Countries of Asia and the Arabian Peninsula in OPEC

This part of the world map is represented in OPEC by Iran, Saudi Arabia, Kuwait, Iraq, Qatar, the United Arab Emirates and Indonesia (before exiting in January 2009). Although the latter has a different geographical location, its interests have continuously intersected with other Asian partners since the inception of the Asia-Pacific Economic Cooperation Forum (APEC).

The countries on the Arabian Peninsula are characterized by monarchical rule. Confrontations do not stop for centuries, and since the middle of the twentieth century, people have been dying for oil all over the world. A series of conflicts is feverish in Iraq, Kuwait, Saudi Arabia. Wars are fomented to destabilize the oil market, and as a result, increase the amount of petrodollars earned, increasing the demand for oil.

South American countries that are members of OPEC

Latin America is represented by Venezuela and Ecuador. The first is the initiator of the creation of OPEC. Venezuelan government debt last years grew up. The reason is political instability and falling prices on the world oil market. This state prospered only if the cost of a barrel of oil was above the average.

Ecuador is also unstable due to the presence of a public debt of 50% of GDP. And in 2016, the government of the country had to pay 112 million dollars according to the results of the court. American corporations Chevron for failure to fulfill obligations assumed 4 decades ago, as part of the development of South American oil fields. For a small state, this is a significant part of the budget.

Africa and OPEC

OPEC's actions protect the welfare of 6 African countries out of 54. Namely, the interests of:

  • Gabon;
  • Equatorial Guinea;
  • Angola;
  • Libya;
  • Nigeria;
  • Algeria.

This region has a high population, as well as unemployment and the number of people living below the poverty line. Again, this is due to the low price of a barrel of oil, high level competition and oversaturation of the oil market with raw materials.

OPEC quotas are levers of influence on the global economy

The quota for the extraction of raw materials is the norm for oil exports established for members of the community. October 1973 was the moment of signing an agreement to reduce output by 5%. Decision about the change in production volume assumed a price increase of 70%. These steps were the result of unleashing a "war doomsday”, which was attended by Syria, Egypt, Israel.

Another agreement to reduce the level of oil production, adopted the day after the introduction of the first quota. An embargo was imposed on the US, Japan and some Western European countries. Within a month, quotas were introduced and canceled, which determined to whom, how many barrels of oil per day to put up for sale, at what price to sell the extracted raw materials.

Over the decades, practice has repeatedly proven the effectiveness of these levers of influence, proving the power of the export community. OPEC decisions on oil production are made after discussion of the issue by representatives of the member countries of the organization.

Russia and OPEC

The influence of the exporting community has declined in recent years, which has led to the impossibility of pursuing a monopoly policy, imposing unfavorable conditions on others. This became possible after the entry into the arena of oil producers from China, the United States, Russian Federation. In order for the actions of the community of oil-exporting countries to be controlled (not to go beyond when they could harm non-member states), the Russian Federation, represented by the government, assumed the role of an observer. Russia is an official observer in OPEC, at the same time representing a counterbalance. It has the ability to reduce the price of a barrel by increasing the level of production, thereby affecting the world market.

OPEC problems

The main difficulties that have to be dealt with are contained in the following theses:

  • 7 out of 14 members are at war.
  • Technological imperfection, lagging behind progress, feudal atavism of the state system of some participating countries.
  • Lack of education, lack of qualified personnel at all levels of production in most participating countries.
  • Financial illiteracy of the governments of most OPEC member countries, unable to adequately dispose of large profits.
  • The growth of influence (resistance) of states that are not members of the coalition.

Under the influence of these factors, OPEC ceased to be the leading regulator of the stability of the commodity market and the liquidity of the petrodollar.

The abbreviation OPEC stands for "Association of Petroleum Exporting Countries". main goal organization was the regulation of prices for black gold in the world market. The need for such an organization was obvious.

In the middle of the 20th century, oil prices began to fall due to a glut of the market. The Middle East sold the most oil. It was there that the richest deposits of black gold were discovered.

In order to pursue a policy to keep oil prices on a global scale, it was necessary to force the oil-producing countries to reduce the rate of its production. This was the only way to remove excess hydrocarbons from the world market and raise prices. To solve this problem, OPEC was created.

List of countries that are members of OPEC

Today, 14 countries participate in the work of the organization. Twice a year, consultations between representatives of the organization are held at the OPEC headquarters in Vienna. At such meetings, decisions are made to increase or decrease the oil production quotas of individual countries or the entire OPEC.

Venezuela is considered the founder of OPEC, although this country is not a leader in oil production. The palm in terms of volume belongs to Saudi Arabia, followed by Iran and Iraq.

All in all, OPEC controls about half of the world's black gold exports. In almost all member countries of the organization, the oil industry is the leading one in the economy. Therefore, the decline in world oil prices deals a strong blow to the income of OPEC members.

List of African countries that are members of OPEC

Of the 54 African states, only 6 are members of OPEC:

  • Gabon;
  • Equatorial Guinea;
  • Angola;
  • Libya;
  • Nigeria;
  • Algeria.

Most of the "African" members of OPEC joined the organization in 1960-1970. At that time, many African states liberated themselves from the colonial domination of European countries and gained independence. The economy of these countries was focused mainly on the extraction of minerals and their subsequent export abroad.

African countries are characterized by a high population, but also a high percentage of poverty. To cover the cost of social programs the governments of these countries are forced to extract a lot of crude oil.

In order to withstand competition from European and American oil-producing transnational corporations, African countries joined OPEC.

Asian countries that are members of OPEC

Political instability in the Middle East predetermined the entry of Iran, Saudi Arabia, Kuwait, Iraq, Qatar, and the United Arab Emirates. The Asian member countries of the organization are characterized by low population density and huge foreign investment.

Oil revenues are so huge that Iran and Iraq paid for their military expenses in the 1980s by selling oil. Moreover, these countries fought against each other.

Today, political instability in the Middle East threatens not only the region itself, but also threatens world oil prices. In Iraq and Libya Civil War. The lifting of sanctions against Iran threatens to increase oil production in this country, despite the obvious excess of the OPEC quota for oil production.

Latin American countries that are members of OPEC

Only two countries Latin America OPEC members are Venezuela and Ecuador. Despite the fact that Venezuela is the initiator of the founding of OPEC, the state itself is politically unstable.

Recently (in 2017), a wave of anti-government protests swept through Venezuela related to the ill-conceived economic policy of the government. Behind Lately The country's public debt has grown significantly. For some time the country kept afloat due to high oil prices. But as prices plummeted, so did the Venezuelan economy.

Non-OPEC Oil Exporting Countries

Recently, OPEC has lost the levers of pressure on its members. This situation is largely due to the fact that several oil-importing countries that are not members of OPEC have appeared on the world market.

First of all it is:

  • Russia;
  • China;

Despite the fact that Russia is not a member of OPEC, it is a permanent observer in the organization. The increase in oil production by non-OPEC countries leads to a decrease in the cost of oil on the world market.

However, OPEC cannot influence them, since even the members of the organization do not always comply with the agreements and exceed the allowable quotas.

Many companies and specialist representatives from OPEC countries come to the rather large Neftegaz exhibition held in Moscow.

Russians rarely pay attention to headlines like "OPEC agreement", "shale revolution" or "sanctions against Iran", considering them boring and uninteresting. Meanwhile, oil trade is one of the main sources of income for the Russian state budget, and it is the OPEC countries that determine the rules of the game in the global energy market. The influence of this organization on world economy huge, although now she is facing some difficulties.

Despite the frequent use of this designation, most of our citizens do not know how OPEC stands for, what this organization does, and who are its members.

Since its founding, OPEC has been the target of constant criticism. Among the main claims are cartel collusion and inflated oil prices. Moreover, they come not only from ordinary market participants or industry experts, but also from “ the mighty of the world this." For example, accusations against OPEC regularly appear on US President Donald Trump's Twitter - he calls on the alliance to lower prices. Moreover, the Americans are developing the NOPEC anti-cartel law, which will allow them to sue the organization. However, the prospects for its adoption look very vague.

In recent years, the OPEC organization has been losing its former power, and the reason for this is the American "shale revolution" and the constant strife between the members of the alliance. They even talked about the possible collapse of OPEC or its significant reformatting. Since 2016, Russia has been actively cooperating with the organization, coordinating restrictions on oil production. This situational union allowed to significantly increase the price of "black gold". One way or another, changes in the organization are inevitable, because we live in an era of transformation of the global energy market. Before talking about current problems, one should explain what OPEC is, what its goals and objectives are, and also say a few words about the history of the alliance.

What is OPEC and what is its share in oil production

Oil is the most important energy resource of mankind. The Organization of the Petroleum Exporting Countries - this is the decoding of the abbreviation OPEC - was created to regulate the production of "black gold" and ensure the stability of supplies. The Alliance was founded in September 1960. The headquarters of OPEC is located in Vienna.

Today, the organization includes fourteen states - in January 2019, Qatar left it. ORES is led by Mohammed Barkindo, who was appointed Secretary General in August 2016. The official website of the alliance is opec.org, the emblem is a blue field with a stylized name of the organization.

What countries are in OPEC? If you look at the map of the world, it is easy to see that the members of the alliance are located in Africa, Asia and South America. There is not a single Western state in the composition.

Here is a list of OPEC countries:

  • Angola;
  • Venezuela;
  • Saudi Arabia,
  • Algeria;
  • Gabon,
  • Iran;
  • Iraq;
  • Kuwait;
  • Congo;
  • Libya;
  • Nigeria;
  • Equatorial Guinea;
  • Ecuador.

Today, the alliance controls about two-thirds of the total oil reserves. OPEC accounts for more than a third of its production and about half of global exports. To date, proven oil reserves amount to 1,199.71 billion barrels. In June 2016, OPEC's total production reached 32.643 million barrels per day. The largest supplier of raw materials is Saudi Arabia: it accounts for 10.308 million barrels per day.

The Alliance has a huge political influence, although it was originally created as an international trade association, which is clearly spelled out in its Charter.

The goals of the organization and its structure

The main goals declared by OPEC are the coordination of oil production and the development of a unified policy in this area.

This allows members of the organization to provide:

  • Stability of supplies of raw materials to consumers;
  • Predictability of oil prices;
  • Getting profit from investments in the oil industry.

In practice, this happens as follows: twice a year, relevant ministers meet in Vienna to discuss the current market situation. Based on the assessments and forecasts made, decisions are made regarding production volumes. Moreover, they can be both reduced and increased. After that, the most exciting moment comes - new quotas are set for each member of the organization.

Decisions on oil production volumes are made at OPEC Conferences, held twice a year. In the structure of the alliance, they are considered the highest governing body, responsible for making the most important decisions. The conferences approve budgets, report on their implementation, accept new members, appoint a secretary and his deputies.

Alliance has executive agency- Board of Governors. He prepares the agenda of meetings, draft budgets. It employs dozens of people, divided into several departments.

How and why OPEC was created

OPEC appeared in a difficult post-war period when the foundations of the modern world order were laid. The colonial system was collapsing, the sources of strategic raw materials slipped from the tenacious hands of global corporations and passed under the control of national governments.

In those years, oil production was controlled by several largest companies, they were called so - "Seven Sisters": Shell, Exxon, Texas, Mobil, Chevron, British Petroleum and Gulf Oil. They formed a cartel, but they acted in the interests of the largest consumers of energy resources - they kept prices low. It is clear that such a policy did not suit the countries where oil was produced at all.

Awareness of the need to protect their own economic interests arose in the Middle East long before the formation of the alliance. In 1953, an agreement was signed between the Iraqis and the Saudis to coordinate the production and sale of oil. The last "drop" that broke the patience of the oil-producing states was another reduction in purchase prices by the "Seven Sisters".

In 1959, the League of Arab States met main theme became "oil" issues. Venezuela was invited to the event and put forward the initiative to form OPEC. In September 1960, it was announced the creation of an organization that would represent the interests of oil exporters. It consists of five states: Venezuela, Kuwait, Saudi Arabia, Iran and Iraq. In 1961, at the second conference, which was held in Caracas, the charter of the alliance was approved.

In 1962, the newly created organization officially registered with the UN. In 1968, the framework declaration of the alliance was approved, which emphasized the right of independent states to independently dispose of natural resources located on their territory.

In this decade, new members joined the organization: Algeria, Libya, Indonesia, and the United Arab Emirates.

In this period, the attitude towards OPEC can be called ambiguous. The collective West took a wary, even hostile position, because the alliance was taking under its control the most important strategic resource, which was previously undividedly controlled by American and European companies. In the Soviet Union, the creation of the organization was initially welcomed: it completely fit into the communist paradigm of the struggle of the oppressed peoples against Western imperialism.

At one time, Moscow even thought of joining OPEC, especially since it already included Algeria, Libya and Iraq, which were considered friends of the USSR. However, it soon became clear that the Charter of the organization required freedom of investment in the oil industry, which was unacceptable for the closed Soviet economy.

70s and 80s: OPEC at its peak

In the 1970s, the influence of OPEC on global economy increased significantly: it was already able to regulate the global price of crude oil. The organization became more numerous - Nigeria, Ecuador and Gabon joined it.

The power of the alliance was clearly demonstrated during the embargo on the supply of crude oil, which led to an acute energy crisis in the US and Europe. So the Arab countries decided to punish Israel's allies after the Yom Kippur War. The sharp rise in prices showed the critical dependence of developed countries on the cost of energy.

These events had serious and far-reaching consequences. For the first time, they forced the West to think seriously about its energy security. The United States created the Strategic Oil Reserve, and similar reserves appeared in many other countries. Energy-saving technologies began to be introduced around the world.

Thanks to the Arab embargo, the USSR was able to significantly strengthen its position in the world energy market: oil exports to the West from the recently discovered Siberian fields increased significantly. This, as well as a multiple increase in the cost of “black gold”, ensured a “period of stagnation” - an era that many of our fellow citizens still remember with nostalgia.

In the early 80s, prices reached their maximum, after which they rapidly went down: in the middle of the decade, one barrel cost about ten bucks. At the same time, the alliance's share in world production and revenue from the sale of raw materials collapsed. The organization managed to level the situation by introducing quotas for its members, as well as changing the pricing mechanism - the so-called OPEC basket appeared.

The end of the past and the beginning of the present millennium

The 1990s were a period of predominantly low oil prices. This was the result of some slowdown in the global economy and several crises in the Asian region. At this time, for the first time, the topic of climate change appeared on the global agenda, due to carbon dioxide emissions into the atmosphere.

The cost of "black gold" began to rise around 2004, which was facilitated by several factors at once. The Americans started another war in the Middle East, the Chinese economy grew rapidly, requiring more and more energy, and financial and stock speculation began to have a significant impact on the cost of energy. By 2008, the price of one barrel exceeded one hundred dollars, but the crisis that happened brought it down to the lowest levels. Angola joined the alliance in 2007.

At the end of the 2000s, the “shale revolution” began in the United States, which led to the appearance on the market of new, very significant volumes of raw materials. And if in 2007 the Americans produced 2.3 million barrels of shale oil per day, then last year its number increased to 6.2 million barrels.

In 2014, the OPEC states failed to agree on a reduction in production quotas, which led to a catastrophic drop in prices - to $ 26. In 2016, the Saudis were able to reach a record level of 10.67 million barrels per day. A consensus was reached only by the beginning of 2017, which allowed prices to return to the $50-60 corridor.

Cooperation between OPEC and Russia

In 1998, our country became an observer in OPEC. Since that time, Russian relevant ministers have been meeting with their colleagues from the alliance and taking part in its conferences. In 2015, Russia received an offer to join the organization, but it was rejected.

Since 2016, the OPEC+ formula has been in effect, according to which Russia, together with the alliance, coordinates the amount of oil produced. At the end of last year, after a long and bitter debate, a decision was made to reduce overall production by 1.2 barrels per day, of which our country accounted for 228,000 barrels.

It can be confidently stated that today OPEC alone will not be able to raise and lower prices, as in the "good old days". For a significant change in the market situation, Russia's participation is necessary.

Problems of the organization and possible ways to solve them

Now the main problem of OPEC is a significant increase in oil production in countries that are not members of the alliance. The most serious challenge, of course, is the growth in the production of American shale oil, but other countries are also confidently increasing volumes. All this has led to an oversupply in the market, which drives prices down. OPEC can no longer act as before: each time reducing production, the countries included in the alliance, in fact, give a piece of the market to American "shale" and other producers.

Another problem is the contradictions within the alliance itself. The countries of the Middle East have relatively small populations and huge low-cost oil reserves. Therefore, they can easily reduce production volumes. States such as Venezuela, Angola, Nigeria have huge social problems, which forces them to fight for every barrel of quota. Most likely, due to the rapid growth of renewable energy, oil consumption will begin to decline in the coming years, which will further reduce OPEC's market share. Therefore, many industry experts believe that OPEC will not be able to pursue a coordinated policy in the field of oil production, and the organization is expected to collapse.

In addition, it is difficult to trace how conscientiously OPEC members fulfill their obligations. Exceeding quotas is a perennial problem of the organization. Another constant "disaster" of OPEC is the political and social instability in the countries of the alliance. Today, conflicts are raging in Libya, Iraq, Nigeria, and are seriously “storming” Venezuela.

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Every person is well aware of the existence of oil and products produced on its basis. At the same time, even a schoolboy is aware that black gold is mined from the bowels of the earth. On the whole planet, as reality shows, there are not so many states on whose territory oil is produced. Most of them are called countries that are members of OPEC. We will consider them in this article.

basic information

So, before revealing the topic, we first find out what OPEC is in general. This abbreviation is translated from in English stands for "Organization of the Petroleum Exporting Countries". In fact, this is a worldwide cartel, the main purpose of which was to regulate oil production, as well as control its price.

Key points

Countries that are members of OPEC this moment control about two-thirds of the world's oil reserves. The states of this organization account for within 40% of the total global production of black gold. It is worth noting that Canada and OPEC did not pass the peak of oil in the era of modernity, the composition of the countries of which will be given below. In turn, the Russian Federation reached its peak in 1988, far from us. The composition of OPEC at that time was initially somewhat different from the current one. The organization itself was formed during the Baghdad Conference, which took place from 10 to 14 September 1960. The initial members of the newly created structure were such states as Kuwait, Iraq, Iran, Saudi Arabia and Venezuela. By the way, it was the latter who initiated the creation of the cartel.

Interesting fact. Great Britain, Oman, Norway, Mexico, Brunei, and even the non-existent Soviet Union have never been part of OPEC.

Historical reference

By the time the first composition of OPEC was formed, the world market had a significant surplus of oil offered for sale. This surplus was formed largely due to the fact that the active development of simply colossal oil sources in the Middle East began. Also, the Soviet Union actively entered the world stage, which doubled the volume of black gold extracted from the bowels of the earth during the period from 1955 to 1960. This state of affairs led to a significant increase in competition in the world market, which quite logically ensured a constant reduction in prices.

It should be noted that at that time the world oil market was completely controlled by seven transnational corporations that worked in the financial interests of exclusively Western powers. For a clear coordination of the affairs of these companies, the International Oil Cartel was created, which kept oil prices within 1.5-3 US dollars per barrel.

Thus, the creation of OPEC was primarily based on the fact that the leading oil exporters could most effectively coordinate their actions to prevent a decrease in world prices for oil products. Well, since in the era of the 1960s the world market was saturated with oil, the first task of OPEC was to agree on restrictions on oil production in order to stabilize prices.

Prerequisites

Before finding out which countries are members of OPEC, let's point out the fact that the first signs of the creation of this organization appeared back in the 1930s, when oil fields began to be developed in the Middle East. Practically the very first in the list of oil-bearing sources was Baghdad. In 1934, industrial production started in Bahrain, in 1936 in Kuwait, in 1938 - in Saudi Arabia, and after World War II - in other states.

Due to the fact that these powers did not have their own financial and human resources for oil production, foreigners were attracted to develop the subsoil. Five American companies were ahead of everyone in this matter: Exxon Mobil, Texaco, Mobil Oil, Standard Oil Company of California, and Gulf Oil. The British also joined in the face of British Petroleum.

The impudence of the so-called investors was so great that these people openly ignored the requirements and laws of those countries in whose territory they produced oil. Moreover, the Americans and the British began to control natural resources and economic activity powers that have oil in their land. And in 1960 there was the first serious victory of the states that opened their bowels to foreigners, since OPEC was created. This turn of events was largely facilitated by both the situation directly in the Middle East and the international economic situation.

At the same time, in most oil-producing countries, oil is the main source of attracting foreign currency. Due to the extremely backward structure of the economy, the foreign trade operations of these states are based on only one oil. For example, in the UAE, Libya and Saudi Arabia, the share of oil products in their own exports is 100%. In Iraq, this figure is 99%, Qatar - 98%, Kuwait, Iran, Nigeria - 93%, Algeria - 85%, Gabon - 77%, Indonesia - 69%.

The struggle for independence

The countries that make up OPEC today were dependent states half a century ago and therefore tried in every possible way to get rid of the foreign yoke. This situation, of course, contributed to a significant convergence of their interests. However, none of the oil states on their own could defeat the so-called investors. In particular, in 1951, Iran attempted to nationalize the Anglo-Iranian Oil Corporation on its territory, but immediately fell under crazy economic pressure from the United States, Great Britain and the International Oil Cartel, which was then still very strong.

Timid steps

Back in 1949, some rapprochement between the oil-producing countries took place at the initiative of Venezuela. This power made contact with the states of the Middle East and offered to find ways for further mutually beneficial cooperation. But unfortunately, at that time this idea failed, since the Arab partners were not yet really independent and had different monarchical regimes that were not very open to a full-fledged dialogue. Largely because of this, the Venezuelan initiative failed.

In 1959, the oil companies unilaterally lowered the price of raw materials. And therefore, only Venezuela lost at that moment colossal money for those times - 140 million dollars. This state of affairs led the oil exporters to unite and hold the First Arab Petroleum Congress, which was held in Cairo. Its participants demanded in the final resolution that the companies must consult with the leadership of the oil-producing powers before making any decision regarding the cost. It was also proposed to create an advisory commission on oil issues.

New player

On September 14, 1960, OPEC was established in Baghdad. The organization initially consisted of only five countries, but over the years expanded to 12. Each state in OPEC has won the right to independently control its natural resources and exploit them, taking into account exclusively national interests. On September 1, 1965, the Secretariat of this international organization began to be based in Vienna.

How it works?

The composition of OPEC has changed several times over the years of its existence. However, always and to this day the main governing bodies of the organization are:

  • Conference.
  • Advice.
  • Secretariat.

The conference is the most influential body, and the highest position is general secretary. Twice a year there are business meetings of energy ministers and other relevant professionals. But in any case, the main task of these meetings is to determine the state of the international oil market. In addition, cartel members are developing a clear plan to keep the situation stable. Also Special attention is given to forecasting the future situation in the oil market.

Note that OPEC, consisting of 12 countries, had for the most part oil fields in the world. In the era of the 1990s, Gabon withdrew from the organization, and Ecuador independently decided to suspend its membership in this alliance until October 2007. The Russian Federation received observer status for the organization in 1998.

In the cartel there is such a thing as the "basket" of OPEC. In short, this term implies the arithmetic mean of the prices of those grades of oil that are produced on the lands of the member states of the organization.

Let's list the countries that are members of OPEC. The list of these powers today is as follows:

  • Iran.
  • Iraq.
  • Kuwait.
  • Algeria.
  • Angola.
  • Gabon.
  • Libya.
  • Qatar.
  • Nigeria.
  • Ecuador.
  • Saudi Arabia.
  • Equatorial Guinea.

Recent meetings

In early 2016, OPEC members met to reach an agreement that would satisfy all participants. However, the Saudis did not even hide that they did not even plan to discuss the reduction in the level of their own oil production. Iran was of the same opinion.

On the last day of November 2017, another meeting of the organization was held, but even then, again, it was not possible to reach an optimal agreement. In this regard, experts are of the opinion that oil prices in 2018 are unlikely to stabilize.

In 2015, the Russian Federation was invited to join OPEC as a full member, but the former post-Soviet state responded with a decisive refusal.

The content of the article

ORGANIZATION OF OIL EXPORTING COUNTRIES (OPEC)(Organization of Petroleum Exporting Countries, OPEC) is an international economic organization that unites most of the leading oil exporting countries. Regulates the volume of production and the price of oil on the world market. OPEC members control 2/3 of the world's oil reserves.

The headquarters of OPEC was originally located in Geneva, later moved to Vienna. Twice a year (not counting extraordinary events) OPEC conferences are held, at which each country is represented by the minister responsible for oil production. In addition to official conferences, ministers also hold informal meetings. The main object of negotiations is the regulation of oil production volumes. The main decisions are made by the rule of unanimity (the right of veto is valid, there is no right of abstention). The role of the OPEC president, who leads the organizational work on holding conferences and representing OPEC at various international forums, is performed by one of the ministers of the participating countries. At the 132nd Extraordinary Conference of OPEC in July 2004, Sheikh Ahmad al-Fahd al-Sabah, Kuwait's oil minister, was elected.

In the 2000s, the share of 11 OPEC countries in world oil production was approximately 35-40%, in exports - 55%. This dominant position allows them to exert a strong influence on the development of not only the world oil market, but also the world economy as a whole.

OPEC in the 1960s–1970s: the road to success.

The organization was created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to coordinate their relations with Western oil companies. As an international economic organization OPEC was registered with the UN on September 6, 1962. Qatar (1961), Indonesia (1962), Libya (1962), United United Arab Emirates(1967), Algeria (1969), Nigeria (1971), Ecuador (1973, withdrew from OPEC in 1992) and Gabon (1975, withdrew in 1996). As a result, the OPEC organization united 13 countries (Table 1) and became one of the main participants in the world oil market.

OPEC countries
Table 1. OPEC COUNTRIES AT THE HIGHEST RISE OF THEIR INFLUENCE (1980)
Countries GNP per capita, USD Share of oil in export value, % Oil production, million tons Proved oil reserves, million tons
United Arab Emirates (UAE) 25,966 93,6 83 4,054
Qatar 25,495 95,2 23 472
Kuwait 19,489 91,9 81 9,319
Saudi Arabia 14,049 99,9 496 22,946
Libya 11,327 99,9 86 3,037
Gabon 6,138 95,3 9 62
Venezuela 4,204 94,7 113 2,604
Iraq 3,037 99,2 130 4,025
Algeria 2,055 91,7 51 1,040
Iran 1.957 94,5 77 7,931
Ecuador 1.203 54,1 11 153
Nigeria 844 95,3 102 2,258
Indonesia 444 72,1 79 1,276

The creation of OPEC was caused by the desire of oil exporting countries to coordinate efforts to prevent a decline in world oil prices. The reason for the formation of OPEC was the actions of the Seven Sisters, a global cartel that united the companies British Petroleum, Chevron, Exxon, Gulf, Mobil, Royal Dutch Shell and Texaco. These firms, which controlled the processing of crude oil and the sale of petroleum products around the world, unilaterally reduced the purchase price of oil, on the basis of which they paid income taxes and royalties (rent) for the right to exploit natural resources to oil-producing countries. In the 1960s, there was an oversupply of oil in the world markets, and the original purpose of the creation of OPEC was the agreed restriction of oil production for the sake of stabilizing prices.

In the 1970s, under the influence of the rapid development of transport and the construction of thermal power plants, world demand for oil increased dramatically. Now the oil-producing countries could consistently increase the rent payments of oil producers, significantly increasing their revenues from oil exports. At the same time, the artificial containment of oil production led to an increase in world prices (Table 2).

Dynamics of current prices and rental payments for reference oil
Table 2. DYNAMICS OF CURRENT PRICES AND RENTAL PAYMENTS FOR REFERENCE OIL*
years Current selling prices, dollars per barrel Rent payments (royalty plus income tax)
1960 1,50 0,69
1965 1,17 0,78
February 1971 1,65 1,19
January 1973 2,20 1,52
November 1973 3,65 3,05
May 1974 9,55 9,31
October 1975 11,51 11,17
* Reference oil is oil from Saudi Arabia. Oil from other countries is recalculated to the reference oil depending on the fuel value.

In 1973-1974, OPEC managed to achieve a sharp increase in world oil prices by 4 times, in 1979 - by another 2 times. The formal reason for price gouging was the Arab-Israeli war of 1973: demonstrating solidarity in the fight against Israel and its allies, the OPEC countries for some time stopped shipping oil to them altogether. Due to the "oil shock", the crisis of 1973–1975 turned out to be the worst worldwide economic crisis in the entire period after World War II. Formed and strengthened in the fight against the Seven Sisters oil cartel, OPEC itself became the strongest cartel in the world oil market. By the early 1970s, its members accounted for approximately 80% of proven reserves, 60% of production, and 90% of oil exports in non-socialist countries.

The second half of the 1970s was the peak of OPEC's economic prosperity: demand for oil remained high, soaring prices brought huge profits to oil-exporting countries. It seemed as if this prosperity would last for many decades.

The economic success of the OPEC countries had a strong ideological significance: it seemed that the developing countries of the "poor South" managed to achieve a turning point in the fight against developed countries"Rich North". The success of OPEC was superimposed on the rise of Islamic fundamentalism in many Arab countries, which further enhanced the status of these countries as new strength world geoeconomics and geopolitics. Realizing itself as a representative of the "third world", in 1976 OPEC organized the Fund international development OPEC is a financial institution that provides assistance to non-OPEC developing countries.

The success of this association prompted other third world countries exporting raw materials (copper, bauxite, etc.) to try to use their experience, also coordinating their actions to increase incomes. However, these attempts were generally unsuccessful, because other commodities were not in such high demand as oil.

OPEC in the 1980s–1990s: a weakening trend.

The economic success of OPEC was, however, not very sustainable. In the mid-1980s, world oil prices almost halved (Figure 1), drastically reducing the income of the OPEC countries from "petrodollars" (Figure 2) and burying hopes for long-term prosperity.

The weakening of OPEC was caused by two groups of reasons - a relative decline in demand for oil and an increase in its supply.

On the one hand, the "oil shock" stimulated the search for new energy sources not related to oil production (in particular, the construction of nuclear power plants). The widespread introduction of energy-saving technologies in general has led to a much slower growth in demand for energy resources than expected. On the other hand, the system of oil production quotas by OPEC members turned out to be unstable - it was undermined both from outside and from within.

Some countries that were also major oil exporters were not included in OPEC - these are Brunei, Great Britain, Mexico, Norway, Oman and, most importantly, the USSR, which, according to some estimates, has the second largest potential oil reserves in the world. These countries benefited from the increase in world prices initiated by OPEC, but they did not obey its decisions to limit oil production.

Within OPEC itself, unity of action was often broken. The organic weakness of OPEC is that it unites countries whose interests are often opposed. Saudi Arabia and other countries in the Arabian Peninsula are sparsely populated, but have huge oil reserves, receive large investments from abroad, and maintain close relations with the Seven Sisters. Some other OPEC countries, such as Nigeria and Iraq, are characterized by high population and poverty, and they implement costly programs economic development and have high external debt. These countries are forced to extract and sell as much as possible in order to receive foreign exchange earnings. more oil especially if prices are falling. The political orientation of the OPEC countries also differs: if Saudi Arabia and Kuwait relied on the support of the United States, then many other Arab countries (Iraq, Iran, Libya) pursued an anti-American policy.

The discord between the OPEC countries is aggravated by political instability in the Persian Gulf. In the 1980s, Iraq and Iran maximized their oil production to pay for the costs of war with each other. In 1990, Iraq invaded Kuwait in an attempt to annex it, but the Gulf War (1990–1991) ended in Iraq's defeat. International trade sanctions were applied to the aggressor, which severely limited Iraq's ability to export oil. When American troops occupied Iraq in 2003, it generally took this country out of the ranks of independent participants in the world oil market.

As a result of the influence of these factors, OPEC lost its role as the main regulator of world oil prices and became only one (albeit very influential) of the participants in exchange trading on the world oil market (Table 3).

The evolution of the oil pricing mechanism
Table 3 THE EVOLUTION OF THE PRICING MECHANISM IN THE WORLD OIL MARKET IN THE SECOND HALF OF THE 20TH CENTURY
Market Characteristics Stages of development of the world oil market
Before 1971 1971–1986 After 1986
Pricing principle cartel Competitive
Who sets the price Cartel of Oil Refining Corporations “Seven Sisters” 13 OPEC countries Exchange
Dynamics of oil demand sustainable growth Alternating rise and fall slow growth

Prospects for the development of OPEC in the 21st century.

Despite the difficulties of control, oil prices remained relatively stable throughout the 1990s compared to the fluctuations they experienced in the 1980s. Moreover, since 1999, oil prices have gone up again. The main reason for the trend change was OPEC's initiatives to limit oil production, supported by other major oil-producing countries that have observer status in OPEC (Russia, Mexico, Norway, Oman). Current world oil prices in 2005 reached a historical maximum, exceeding $60 per barrel. However, adjusted for inflation, they still remain below the 1979-1980 level, when the price in modern terms exceeded $80, although they exceed the level of 1974, when the price was $53 in modern terms.

The development outlook for OPEC remains uncertain. Some believe that the organization managed to overcome the crisis of the second half of the 1980s - early 1990s. Of course, the former economic strength, as in the 1970s, cannot be returned to it, but in general, OPEC still has favorable opportunities for development. Other analysts believe that the OPEC countries are unlikely to be able to comply with the established oil production quotas and a clear common policy for a long time.

An important factor in the uncertainty of OPEC's prospects is associated with the vagueness of the ways of development of world energy as such. If serious progress is made in the use of new energy sources (solar, atomic energy etc.), then the role of oil in the world economy will decrease, which will lead to a weakening of OPEC. Official forecasts, however, most often predict the preservation of oil as the planet's main energy resource for the coming decades. According to the report International Energy Forecast - 2004 prepared by the US Department of Energy Information Administration, the demand for oil will grow, so that with the existing oil reserves oil fields will be depleted by about 2050.

Another factor of uncertainty is the geopolitical situation on the planet. OPEC took shape in a situation of a relative balance of power between the capitalist powers and the countries of the socialist camp. However, today the world has become more unipolar, but less stable. On the one hand, many analysts fear that the United States, as the world's policeman, may begin to use force against those who pursue economic policies that do not coincide with America's interests. The events of the 2000s in Iraq show that these predictions are justified. On the other hand, the rise of Islamic fundamentalism could increase political instability in the Middle East, which would also weaken OPEC.

Since Russia is the largest oil-exporting country that is not a member of OPEC, the question of our country's entry into this organization is periodically discussed. However, experts point to the discrepancy between the strategic interests of OPEC and Russia, which is more profitable to remain on its own. active force in the oil market.

Consequences of OPEC activity.

The high revenues received by the OPEC countries from oil exports have a dual effect on them. On the one hand, many of them manage to improve the standard of living of their citizens. On the other hand, petrodollars can become a factor slowing down economic development.

Among the OPEC countries, even the richest in oil (Table 4), there is not a single one that could become sufficiently developed and modern. Three Arab countries - Saudi Arabia, the United Arab Emirates and Kuwait - can be called rich, but not developed. An indicator of their relative backwardness is at least the fact that all three still retain feudal-type monarchical regimes. Libya, Venezuela and Iran are at about the same low level of prosperity as Russia. Two more countries, Iraq and Nigeria, should be considered by world standards not just poor, but very poor.

Countries with the largest oil reserves
Table 4 COUNTRIES WITH THE LARGEST OIL RESERVES IN THE EARLY 2000S
Countries Share in world oil reserves, % Share in world oil production by exporting countries, % GDP per capita, thousand dollars
Saudi Arabia 27 16 13,3
Russia (not part of OPEC) 13 15 7,1
Iraq 10 5 0,8
United Arab Emirates 10 4 20,5
Kuwait 10 4 18,7
Iran 9 7 6,0
Venezuela 7 6 5,7
Libya 3 3 7,6
Nigeria 2 4 0,9
United States (not part of OPEC) 2 0 34,3

The contrast between natural wealth and the lack of noticeable progress in development is explained by the fact that abundant oil reserves (as well as other "free" natural resources) create a strong temptation to fight not for the development of production, but for political control over the exploitation of resources. When there is no readily available natural wealth in a country, income must be generated by productive activities, the benefits from which accrue to the majority of citizens. If a country is generously endowed with natural resources, then its elite tends to be more rent-seeking than manufacturing. Natural wealth can thus turn into a social disaster - the elite get richer, and ordinary citizens vegetate in poverty.

Among the OPEC countries there are, of course, examples when natural resources operated relatively efficiently. Prominent examples are Kuwait and the United Arab Emirates. In these countries, current oil revenues are not only “eaten up”, but also put aside in a special reserve fund for future expenses, and are also spent on the development of other sectors of the economy (for example, the tourism business).

Yuri Latov,Dmitry Preobrazhensky

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