Countries that are oil exporters. Opek - history and significance of the cartel

OPEC decisions on oil prices are one of the most important factors in fundamental analysis. The dynamics of trading in this product depend on them.

Today you will learn what OPEC is and how OPEC oil exporting countries influence the production of raw materials, what kind of organization it is, how it regulates quotas for obtaining black gold from the bowels of the earth, what kind of relations it has with Russia and many other important things for a trader and investor questions.

What is OPEC in simple words

is an international organization that unites the governments of 15 oil exporting countries. Initially, it consisted of 5 countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. It was created during the Baghdad Conference in 1960. Later, other states joined this country, such as Qatar, Libya, UAE, Nigeria and others. Indonesia and Gabon were also members of this organization at one time, but now they are no longer part of it.

OPEC is an abbreviation for The Organization of the Petroleum Exporting Countries (OPEC) - Organization of Petroleum Exporting Countries.

From 1960 to 1965, the headquarters of oil exporters OPEC was in Geneva, but already in September 1965 it began to be permanently located in Vienna.

The purpose of the organization is to unite oil exporting states to regulate economic policy in this industry: to ensure adequate prices for black gold, to ensure constant and fair supplies to consumer countries.

OPEC in simple words is an international organization created to ensure that all oil exporters and consumers have a good time.

Wikipedia says that OPEC is an organization that controls two-thirds of all oil reserves existing in the world. About a third of black gold production and half of exports go to the 15 countries that are part of this organization.

OPEC countries and OPEC oil production

Today the organization includes 15 countries (OPEC oil exporting countries):

  1. Kuwait.
  2. Qatar.
  3. Algeria.
  4. Libya.
  5. Iraq.
  6. Equatorial Guinea.
  7. Venezuela.
  8. Iran.
  9. Nigeria.
  10. Congo.
  11. Gabon.
  12. Ecuador.
  13. Angola.

Despite the fact that the organization includes OPEC oil exporting countries from the most different parts Sveta, greatest influence possessed by the Kingdom of Saudi Arabia (KSA), as well as other states located on the Arabian Peninsula.

The thing is that it is KSA that has the ability to produce huge amounts of oil, while other states have both smaller oil reserves and less modern technologies.

It is for this reason that the organization's policies are largely determined by the monarchies of the Arabian Peninsula, although Iran, Venezuela and other countries also have a say.

OPEC countries, like other countries of the world, participate in world politics, and therefore are forced to follow various trends.

For example, Iran, which has been under Western sanctions for a long time, last years participated in OPEC affairs less and less, because its oil was not bought, fearing hostile actions on the part of the country that imposed these sanctions (USA, Britain and other states). If in the past the headquarters of this organization was in Geneva, Switzerland, today it is located in the capital of Austria - Vienna.

This organization consists of dependent from state oil. Any state can apply to join. Let us consider the states that are part of this intergovernmental organization in more detail.

Countries of Asia and the Arabian Peninsula

This category includes Iran, Iraq, Qatar, Kuwait, UAE and Saudi Arabia. Until January 2009, Indonesia was also on this list. Countries in this category are characterized by a monarchical system. There have been constant conflicts over black gold since the mid-twentieth century. In particular, wars are created specifically to destabilize the market for these raw materials.

South American countries

This category includes Venezuela and Ecuador. The first was one of the initiators of the creation of this organization. IN Lately The economic situation of this country leaves much to be desired. Its national debt has risen due to the political crisis and falling oil prices. At one time, this country was quite developed because oil was expensive. The Venezuela example tells us how important diversification is.

As for Ecuador, this country has very big size government debt ( half of GDP). In addition, she had to pay $112 million for failure to fulfill obligations that were forty years ago, which greatly crippled the economy.

African countries

This country is characterized by a low standard of living, partly due to the oversaturation of the oil market. In addition, these OPEC member states have very large populations and high unemployment.

How OPEC affects the price of oil in examples

OPEC oil production quotas are powerful tools to influence the price of black gold, which are designed to reduce supply when demand is high. This practice has proven highly effective over several decades.

A quota is the amount of oil that can be supplied to participants in this intergovernmental organization.

This instrument was first used in 1973, when the issue size was reduced by 5%. As a result, the price of black gold increased by 70%. Another consequence of this decision is a war where the parties to the conflict were Israel, Syria and Egypt.

When members of this organization make a decision, trading activity in financial markets increases sharply, and this is a good opportunity for a trader to make money.

Major OPEC decisions on oil OPEC decision on oil prices:

  1. The main task of this organization is to coordinate the actions of countries that supply oil to oil markets. The organization is engaged in the unification of oil policy, which is very important both for the organization as a whole and for each exporting country individually.
  2. Another task of OPEC is to stabilize oil supplies, however, as history has shown, in reality this is not the case. Many OPEC countries (with the exception of the developed countries of the Arabian Peninsula) are Third World countries that have neither technology nor military force. KSA and other Arab countries can live without oil, but for other countries oil is the only source of income (for example, Iran and Gabon). As a result, they use oil as a weapon, constantly threatening other world states with an oil blockade in case of failure to comply with any decisions.

Iran constantly threatens to attack American ships that protect peace in the Arabian Gulf, demanding the lifting of sanctions.

OPEC's influence is exercised in much the same way as the influence of any other organization. In some cases, OPEC countries may reduce oil production, which will lead to an increase in its cost. They may also impose an oil embargo.

In the last century, this led to an energy crisis in Western Europe, when some EU countries refused to support Arab countries during a defensive war with Israel. After that, the whole world saw footage of how the head of the Netherlands was forced to get to work by bicycle.

OPEC is also trying to coordinate its actions with Russia in order to more effectively influence world prices.

  • Some Western countries believe that OPEC is gradually monopolizing the oil market and is trying to exclude Iran from the cartel, since this country is subject to sanctions from many countries in the world and discredits OPEC by its very presence at the negotiating table.

Despite numerous accusations, OPEC is playing extremely important role in the global economy and politics, since even the most advanced technologies are not able to replace oil, which is the main source of energy on the planet.

OPEC Oil Production – Quotas and Regulations

The value of OPEC oil production quotas is influenced by the global situation on the black gold market. An additional element of regulation is monitoring compliance with agreements between participating countries. Another key concept regulation – “price corridor”. If the price goes beyond its limits, then a meeting is held, and the participants agree to adjust quotas so that quotations for raw materials remain within the established limit.

Reducing OPEC oil - simple, but effective method regulation of this market.

Oil production quotas are set based on oil reserves and technologies that the country has for its production. That's why the most a large number of Oil is supplied to the market by KSA. This is the most developed country of the cartel, which has the latest technologies and is capable, with the help of one of the strongest armies in the world, to provide security of oil supplies to any point on Earth.

Also, oil supply quotas may be reduced if prices for “black gold” fall. Some EU countries believe that in this way the cartel artificially inflates prices, but this is the sovereign right of all cartel participants.

Also, OPEC's policies in the past made it possible to formulate a unified policy of struggle against oil corporations. As a result, both the attitude towards the cartel participants and the authority of this global organization changed. Since the organization includes almost all the largest oil suppliers, the effectiveness of the organization’s decisions is not in doubt.

OPEC basket and oil prices

People first started talking about the OPEC oil price basket in 1987. This is a collective concept that includes the prices of all types of oil produced in the participating countries, from which the arithmetic average was derived.

The price corridor is set based on the cost of the basket. Its highest price was recorded on July 3, 2008, when the average price for oil from OPEC member states was almost $141 per barrel.

Interesting situation regarding Indonesia. Despite the fact that it left OPEC in 2009, its oil was included in the basket in 2016.

History of OPEC relations with Russia

In the USSR in the 60s of the last century, the attitude towards OPEC was initially positive, because this organization served as a real counterweight to the oil monopolies of the West in the conditions Cold War. Soviet leaders then believed that if it were not for a certain brake in the form of the US allies among the developed Middle Eastern states, then the OPEC member countries could almost follow the path of communism, although this was impossible. This, as the future showed, did not happen.

At the same time, the USSR was, as it were, “on the sidelines” and was in no hurry to join the newly created organization, even despite the presence of allies in it. Soviet Union I didn’t like the then charter of the organization, in particular, the impossibility of becoming a first-class member. After all, only the founder could become it. In addition, there were points that were incompatible with a command economy (in particular, about investments from Western countries).

OPEC was first brought to the top of world politics during the first energy crisis of 1973-74. It broke out as a result of the oil embargo imposed by oil-producing Arab countries against Western countries– allies of Israel, and OPEC fully supported this action. Then many Western countries returned to the Middle Ages, as they ran out of fuel and energy. After this incident, world prices made a sharp threefold jump and brought the world oil market to a completely new stage of development.

At that time, the USSR, already among the world's largest suppliers of “black gold,” even considered the possibility of direct entry into OPEC, where its then friends of the USSR Iraq, Algeria and Libya played important roles. However, the matter did not come to accession, and this, most likely, was prevented by the OPEC Charter.

The fact is that he could not become a full member of the USSR, because he was not among the founders of this organization. Secondly, the Charter contained certain provisions that were then absolutely unacceptable for a closed and inefficient communist economy. For example, members of the organization had to ensure freedom of investment in their oil industry for oil consumers, namely the USA, Britain, France and other Western countries, as well as guarantee income and return of capital to investors. In the USSR, the concept of “private property” was quite vague, so the Soviet authorities could not provide this condition.

OPEC and modern Russia

Concerning modern Russia, then its history of relations with OPEC began in 1998, when it became an observer. From now on, she takes part in the organization’s Conferences and other events related even to countries that are not part of it. Russian ministers regularly meet with the organization's top officials and colleagues. In relations with OPEC, Russia was also the initiator of some activities, in particular, Energy dialogue.

There are also difficulties in relations between OPEC and Russia. First of all, the first is afraid that Russia will increase its market share. In response to this, OPEC is going to reduce oil production, provided that the Russian Federation does not agree to do this. This is why it is impossible to restore world oil prices. In general, OPEC and Russian oil are a bit of a sore point in relations.

In general, relations between the Russian Federation and OPEC are favorable. In 2015, she was even invited to join the ranks of this country, but Russia decided to remain in the role of observer.

The oil cartel did not initially have the political influence it has now. At the same time, even the participating countries did not fully understand why they were creating it, and their goals were different. But now it is an important player in the black gold market, and here are some interesting facts about it.

  1. Before OPEC was created, there were 7 transnational corporations that completely controlled the oil market. After this cartel appeared, the situation changed radically, and the monopoly of private companies disappeared. Now only 4 companies remain, because some were absorbed and some merged.
  2. The creation of OPEC has changed the balance of power to such an extent that it now decides what the price of oil will be. If the price decreases, production immediately decreases and the cost of black gold increases. Of course, the strength of an organization is this moment not as big as before, but still decent.
  3. OPEC countries control 70% of the world's oil. The downside to these statistics is that production is not independently audited, so you have to take OPEC's word for it. Although it is likely that this amount of OPEC oil reserves corresponds to reality.
  4. OPEC was able to create a powerful energy crisis by increasing the price by 450%. Moreover, this decision was deliberate and was directed against the United States and other states supporting Israel during the war with Egypt and Syria. On the other hand, the emergence of the crisis led to the fact that many countries began to form strategic reserves of valuable fuel.

And finally, the main one interesting fact we will take it out separately. Despite the fact that OPEC has a significant influence on the price of oil, it does not directly depend on it. Prices are set during trading on exchanges. It’s just that the cartel knows the trader’s psychology well and knows how to force him to enter into transactions in the direction they want.

OPEC and traders

It would seem that an association of countries that produce 1.3–1.4 billion tons of oil in just 1 year and provide two-thirds of exports to the world market are able to effectively control prices. However, life has shown that in reality everything is more complicated. Quite often, especially recently, OPEC's efforts to adjust prices either do not produce the desired effects or even lead to unexpected negative results.

With its introduction in the early 1980s, the financial market began to have a much greater influence on the formation of prices for “black gold”. If in 1983 positions on oil futures for 1 billion barrels of oil were opened on the New York Mercantile Exchange, then in 2011 they were already opened for 365 billion barrels. And this is many times more than all world production oil.

In addition to the New York Mercantile Exchange, oil futures are traded on other exchanges. In addition, there are other financial instruments (derivatives) that are tied to oil.

Because of this, every time OPEC makes a decision to adjust world prices, it is actually only outlining the intended direction for changes in world prices. Players in financial markets actively promote and take advantage of fluctuations in fuel prices, thereby seriously distorting the effects that OPEC measures were designed to achieve.

Conclusion

OPEC appeared in 1960, when the colonial system of the world was almost destroyed and new independent states began to appear on the international scene, mainly in Africa or Asia.

At that time, their mineral resources, including oil, were extracted by Western companies, the so-called Seven Sisters: Exxon, Royal Dutch Shell, Texaco, Chevron, Mobil, Gulf Oil and British Petroleum. OPEC destroyed the monopoly of American and British companies (as well as some other countries), freeing from colonial oppression many countries that were occupied by colonial empires. 2 ratings, average: 4,50 ). Please rate us, we tried very hard!

OPEC (Organization of Petroleum Exporting Countries) was formed in 1961 at a conference in Baghdad.

What is OPEC- This intergovernmental organization, which was created by oil-producing countries in order to establish control over oil production in their region, unite the efforts of countries and control oil prices.

Five countries proposed creating such an organization: Venezuela, Saudi Arabia, Kuwait, Iran and Iraq.

This was due to the fact that in the 60s of the 20th century, the process of decolonization began, new independent states began to appear on the world map, and the main world share of oil production was owned by 7 transnational corporations, which established their own rules and at one point significantly reduced purchase prices for oil.

The emerging independent states wanted to independently govern their natural resources and do this only for the benefit of their state and society. Since oil was oversupplied at the time, measures were necessary to prevent a subsequent fall in prices. In this connection, OPEC approved its oil production program and created its own body - the Secretariat, which is currently located in Vienna.

Opinion: OPEC is a consequence of the globalization of the world economy. The desire to concentrate the management of the oil industry in a single block, to unify processes, to ensure an uninterrupted supply of raw materials to developed countries and world factories. It is also a powerful tool for influencing world economy, on Russia, through manipulation of oil production volumes and prices.

Initially, OPEC consisted of 5 founding countries. Subsequently, they were joined by 5 more: the UAE, Qatar, Libya, Indonesia and Algeria. At the moment, 12 countries are represented in OPEC: Venezuela, Saudi Arabia, Kuwait, Iran, Iraq, UAE, Libya, Algeria, Ecuador, Equatorial Guinea, Gabon and Angola.

Indonesia became an oil importer and left OPEC. In 2018, Qatar announced its withdrawal from OPEC. In 2015, Russia was invited to join OPEC, but the Russian Federation refused.

Recently, the price of oil has become an important tool of political influence. The economies of some countries are very dependent on current oil prices and when they fall, they suffer colossal losses.

Some OPEC countries (Nigeria, Angola, Iraq, Kuwait), despite large volumes of oil production, have weak economic systems, large external debts and often enter into unjustified military conflicts (for example, the Kuwait invasion of Iraq in 1990). Venezuela had a dictatorship under Hugo Chavez for a long time, which was replaced by his follower Muduro. Therefore, OPEC countries are faced with great difficulties, and even control of 2/3 of world oil reserves does not allow stabilizing the situation in the economy and political sphere.


The opinion is often circulated that OPEC is not a cartel at all, and this organization has long lost real leverage over the price of oil. Meanwhile, market observations in the context of OPEC meetings and decisions show the fallacy of this opinion.

Opinion: OPEC conspiracies to increase oil prices cause negativity in developed countries (shale producers don’t count), the opposite reaction is the growth of alternative energy: wind, sun. The transition to electric vehicles is accelerating. The world is tired of depending on a handful of countries.

OPEC countries and their capitals on the map (list 15) → members of the Organization of Petroleum Exporting Countries (OPEC). Below is a table of OPEC participating countries + map, capital, alphabetical list, flags and continents, in English and Russian

No. Flag Letter A country Capital Continent Letters
1 A Algeria Algeria Africa 5
2 A Angola Luanda Africa 6
3 IN Venezuela Caracas South America 9
4 G Gabon Libreville Africa 5
5 AND Iraq Baghdad Asia 4
6 AND Iran Tehran Asia 4
7 TO Congo Brazzaville Africa 5
8 TO Kuwait Kuwait City Asia 6
9 TO Qatar Doha Asia 5
10 L Libya Tripoli Africa 5
11 ABOUT UAE Abu Dhabi Asia 8
12 N Nigeria Abuja Africa 7
13 WITH Saudi Arabia Riyadh Asia 17
14 E Equatorial Guinea Malabo Africa 21
15 E Ecuador Quito South America 7

Presentation with flags for children and adults: the capitals of 15 OPEC countries. The ability to sort the table alphabetically, select the necessary neighboring states around and their capitals, friendly and unfriendly. Go to detailed map in Russian, look around the city, show border areas nearby, find and write down the names. How many adjacent states are neighbors of the 1st and 2nd order, their location in the region, as indicated

See on the diagram who they are neighbors with and the places nearby, where the nearest city on the border is located. List the names of continents and parts of the world, surrounding seas and oceans. Find out the number of letters in the name and which one it starts with, who is a member of the association of oil exporters from their continent

What is OPEC? International organization oil exporting countries

Goals: coordination of activities and control of oil production volumes, stabilization of the oil products market and oil prices. For this purpose, the countries included in the cartel meet twice a year at OPEC conferences. Russia has been an observer in the OPEC system since 1998. The headquarters of the organization is Vienna, Austria. The next meeting will take place on December 5, 2018.

Full composition - which countries are part of OPEC + capital:

  1. Algiers, Algeria
  2. Angola, Luanda
  3. Venezuela, Caracas
  4. Gabon, Libreville
  5. Iran, Tehran
  6. Iraq, Baghdad
  7. Congo, Brazzaville
  8. Kuwait, Kuwait City
  9. Qatar, Doha
  10. Libya, Tripoli
  11. United Arab Emirates, Abu Dhabi
  12. Nigeria, Abuja
  13. Saudi Arabia, Riyadh
  14. Equatorial Guinea, Malabo
  15. Ecuador, Quito

All OPEC conference members in English:

Full list - OPEC countries on the map and capitals


The table is alphabetical, it contains all the world's largest oil exporters, which are located on three continents of the earth - Asia, South America, Africa. Conference participants by continent:

  • countries included in OPEC of Foreign Asia— Iran, Saudi Arabia, Iraq, United Arab Emirates, Kuwait, Qatar
  • South America— Venezuela, Ecuador
  • Africa— Algeria, Angola, Libya, Nigeria, Gabon, Congo, Equatorial Guinea

    • According to the list, a group of fifteen participating states international conference in Austria, Europe. Also presented interactive map their locations in the world

    Now you know which countries are part of the organization of oil exporting countries OPEC, you can list and show them on the world map 2020

    The content of the article

    ORGANIZATION OF PETROLEUM 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.

    OPEC's headquarters were initially 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. Major decisions are made according to the rule of unanimity (the right of veto is in effect, there is no right to abstain). The role of the OPEC President, who leads the organizational work on holding conferences and represents OPEC at various international forums, is performed by one of the ministers of the participating countries. At the 132nd extraordinary OPEC conference in July 2004, Sheikh Ahmad al-Fahd al-Sabah, minister of oil industry Kuwait.

    In the 2000s, the share of 11 OPEC countries in world oil production was approximately 35–40%, and in exports – 55%. This dominant position allows them to have 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 path to success.

    The organization was created in 1960 by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela to coordinate their relations with Western oil refining companies. How international economic organization OPEC was registered with the UN on September 6, 1962. OPEC was later joined by Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973, left OPEC in 1992) and Gabon (1975, released 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 OF THEIR INFLUENCE (1980)
    Countries GNP per capita, dollars Share of oil in export value, % Oil production, million tons Proven 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 refining of crude oil and the sale of petroleum products throughout the world, unilaterally reduced the purchase prices for oil, based on which they paid income taxes and royalties (rent) for the right to develop natural resources to oil-producing countries. In the 1960s, there was an excess supply of oil on world markets, and the original purpose of creating OPEC was to agree to limit oil production simply to stabilize prices.

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

    Dynamics of current prices and rent payments for reference oil
    Table 2. DYNAMICS OF CURRENT PRICES AND RENT PAYMENTS FOR STANDARD 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 considered to be oil from Saudi Arabia. Oil from other countries is converted into a reference oil depending on its fuel value.

    In 1973–1974, OPEC managed to achieve a sharp increase in world oil prices by 4 times, and in 1979 – by another 2 times. The formal reason for inflating prices 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 most severe global economic crisis in the entire period since World War II. Having formed and strengthened in the fight against the Seven Sisters oil cartel, OPEC itself has become 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 became the peak of OPEC's economic prosperity: demand for oil remained high, soaring prices brought enormous 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” had managed to achieve a turning point in the struggle with the developed countries of the “rich North”. The success of OPEC coincided with the rise of Islamic fundamentalism in many Arab countries, which further increased 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 encouraged other Third World countries exporting primary commodities (copper, bauxite, etc.) to try to use their experience, also coordinating their actions to increase income. However, these attempts were usually unsuccessful, since other commodities were not in such high demand as oil.

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

    OPEC's economic success, however, was not very sustainable. In the mid-1980s, world oil prices fell by almost half (Figure 1), sharply reducing OPEC countries' income from “petrodollars” (Figure 2) and burying hopes for long-term prosperity.

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

    On the one hand, the “oil shock” stimulated the search for new sources of energy not related to oil production (in particular, the construction of nuclear power plants). The widespread adoption of energy-saving technologies has generally led to much slower growth in energy demand 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 the outside and from the inside.

    Some countries that were also major oil exporters were not included in OPEC - Brunei, Great Britain, Mexico, Norway, Oman and, most importantly, the USSR, which, according to some estimates, has the world's second largest potential oil reserves. These countries benefited from the rise 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 disrupted. The organic weakness of OPEC is that it unites countries whose interests are often contradictory. Saudi Arabia and other countries on the Arabian Peninsula are sparsely populated but have vast oil reserves, receive large amounts of foreign investment and maintain close relations with the Seven Sisters. Some other OPEC countries, such as Nigeria and Iraq, have high populations and poverty and have expensive programs economic development and have high external debt. These countries are forced to extract and sell as much as possible to obtain foreign exchange income. more oil, especially if prices drop. The political orientation of the OPEC countries also differs: while Saudi Arabia and Kuwait relied on US support, many other Arab countries (Iraq, Iran, Libya) pursued anti-American policies.

    The discord between OPEC countries is aggravated by political instability in the Persian Gulf area. In the 1980s, Iraq and Iran increased oil production to maximum levels to pay the costs of fighting 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 sharply limited Iraq's ability to export oil. When Iraq was occupied by American troops in 2003, this completely removed this country from being an independent participant 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).

    Evolution of the oil pricing mechanism
    Table 3. EVOLUTION OF THE PRICING MECHANISM ON 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 growth and decline 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 with the fluctuations they experienced in the 1980s. Moreover, since 1999, oil prices have gone up again. The main reason for the change in trend was OPEC's initiatives to limit oil production, supported by other large oil-producing countries that have observer status in OPEC (Russia, Mexico, Norway, Oman). Current world oil prices reached a historical high in 2005, exceeding $60 per barrel. However, adjusted for inflation, they still remain below the level of 1979–1980, when the price in modern terms exceeded $80, although they exceed the level of 1974, when the price in modern terms was $53.

    The prospects for OPEC's development remain uncertain. Some believe that the organization managed to overcome the crisis of the second half of the 1980s and early 1990s. Of course, it will not regain its former economic strength as in the 1970s, but overall, OPEC still has favorable opportunities for development. Other analysts believe that OPEC countries are unlikely to be able to comply with established oil production quotas and a clear unified policy for a long time.

    An important factor in the uncertainty of OPEC's prospects is associated with the uncertainty of the development paths of global energy as such. If serious progress is made in the use of new energy sources (solar energy, 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 persistence of oil as the planet's main energy resource for the coming decades. According to the report International Energy Outlook 2004, prepared by the information office of the US Department of Energy, the demand for oil will increase, so that at current oil reserves oil fields will be depleted by about 2050.

    Another factor of uncertainty is the geopolitical situation on the planet. OPEC emerged in a situation of relative balance of power between the capitalist powers and the countries of the socialist camp. However, these days the world has become more unipolar, but less stable. On the one hand, many analysts fear that the United States, as the “global policeman,” may begin to use force against those who pursue economic policies that do not coincide with American interests. Events in Iraq in the 2000s 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 issue of our country joining this organization is periodically discussed. However, experts point to the divergence of strategic interests of OPEC and Russia, which is more profitable to remain independently acting force on the oil market.

    Consequences of OPEC's activities.

    The high incomes received by OPEC countries from oil exports have a dual impact on them. On the one hand, many of them manage to improve the living standards 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 has managed to become sufficiently developed and modern. Three Arab countries - Saudi Arabia, the UAE and Kuwait - can be called rich, but cannot be called developed. An indicator of their relative backwardness is at least the fact that all three still maintain monarchical regimes of the feudal type. Libya, Venezuela and Iran are at approximately 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
    USA (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 reserves of oil (as well as other “free” natural resources) create a strong temptation to engage in the struggle not for the development of production, but for political control over the exploitation of resources. When a country does not have readily accessible natural resources, income must be obtained through productive activities, the benefits of which accrue to the majority of citizens. If a country is generously endowed with natural resources, then its elite is inclined to engage in more rent-seeking than production. Natural wealth can thus turn into a social disaster - the elite gets rich, while ordinary citizens languish in poverty.

    Among 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 consumed, but also put aside in a special reserve fund for future expenses, and are also spent on boosting other sectors of the economy (for example, the tourism business).

    Yuri Latov,Dmitry Preobrazhensky

    The implementation of international commodity agreements regulating activities in certain market segments is carried out by International Commodity Organizations (ICOs) in the form of:

    • International organizations;
    • International Councils;
    • International Advisory Committees;
    • International research groups(MOMENT).

    All of these institutes are engaged in studying the state of world commodity markets, namely: the current relationship between supply and demand for specific raw materials, the dynamics of prices and conditions.

    Currently operating International councils for olive oil, tin, grain.

    MIGs apply to rubber, lead and zinc, and copper.

    There is an International Cotton Advisory Committee and a Tungsten Committee.

    Iran has the second largest oil reserves after Saudi Arabia (18 billion tons) and occupies 5.5% of the global oil products trading market. Particular attention is paid to economic diversification through the development of precision engineering, automotive engineering, the rocket and space industry, and information technology.

    A major oil exporter is Kuwait. Oil production provides 50% of Kuwait's GDP, its share in the country's exports is 90%. The country also has developed oil refining and petrochemicals, production of building materials, fertilizers, food industry, pearl mining. Desalination in progress sea ​​water. Fertilizers constitute an important part of the country's exports.

    Iraq has the second largest oil reserves in the world. Iraqi state-owned companies North Oil Company and South Oil Company have a monopoly on the development of local oil fields. Iraq's southern fields, managed by SOC, produce about 1.8 million barrels of oil per day, accounting for almost 90% of all oil produced in Iraq.

    Thus, Most OPEC countries are deeply dependent on the income of their oil industry. Perhaps the only exception among the member countries of the organization is Indonesia, which receives significant income from tourism, timber, gas and other raw materials. For the remaining OPEC countries, the level of dependence on oil exports varies from the lowest - 48% in the case of the United Nations United Arab Emirates up to 97% in Nigeria.

    During a crisis, the strategic path for countries dependent on oil exports is to diversify their economies through the development of the latest resource-saving technologies.

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