The Organization of the Petroleum Exporting Countries (OPEC) was formed during the Baghdad Conference on September 10-14, 1960. It was founded by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. It was formed in order to regulate the sale of oil throughout the world and unify petroleum policies among member countries.
Since its formation, nine other countries have joined the organization. OPEC has become an integral part of the world's crude oil market, controlling prices and regulating the supply. More information can be found at the official website here http://www.opec.org/opec_web/en/
Members
OPEC consists of twelve current members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. In addition, Indonesia and Gabon are both former members of the organization.
Map of OPEC member states.
Objectives
The Organization of the Petroleum Exporting Countries seeks to:
Coordinate and unify the petroleum policies of its member countries;
Ensure stabilization of oil markets in order to secure an efficient, economic, and regular supply of oil to consumers;
Provide a steady income to producers and a fair return on capital for those investing in the petroleum industry.
Structure
OPEC's functions are split into many different divisions allowing greater efficiency within the organization.
The OPEC Fund for International Development (OFID)
Created in 1975, OFID is a multilateral financial facility designed to channel OPEC aid to developing countries. It aims to make sustainable development a reality and eradicate poverty throughout the world. The official OFID website can be found here http://www.ofid.org/
The OPEC Secretariat
Located in Vienna, Austria, the Secretariat is the executive organ of the organization and serves as OPEC's headquarters. It conducts research and implements decisions made by the Board of Governors and the Conference. Also serves as the umbrella organization for many sub-groups with specialized functions. More information on the Secretariat can be found here http://www.opec.org/opec_web/en/about_us/26.htm
Office of the Secretary General
Legal Office
Research Division
Data Services, Energy Studies, Petroleum Studies Departments
Support Services Division
Admin & IT Services, Finance & Human Resources, PR & Information Departments
Membership Advantages/ Disadvantages
Members of OPEC enjoy a number of advantages. Together, member states are able to fix oil prices of the world market. In addition, OPEC facilitates trade and ensures a stable market for exporting petroleum.
On the other hand, member nations must abide by the rules set forth by the organization. Prices are fixed by the organization so that no one nation may undercut the market. As a result, no one nation can experience a greater gain than the others. Also, as oil supplies begin to deplete, OPEC members will lose their primary source of income, putting each member in danger of economic stagnation or collapse.
Effect on Local Diversity
As the strength and influence of OPEC grows, the local diversity of its member nations will ultimately decrease. The goal of OPEC is to bring wealth into its member nations through the sale of their petroleum resources. With the arrival of wealth comes the arrival of technology. With technology and wealth comes globalization. Consequently, local diversity will be destroyed. In addition, OFID aims to increase the standard of living in the developing world. As a result, it brings technology and workers, ultimately destroying the local diversity that was originally present.
History
OPEC Flag
The Organization of the Petroleum Exporting Countries (OPEC) was formed during the Baghdad Conference on September 10-14, 1960. It was founded by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. It was formed in order to regulate the sale of oil throughout the world and unify petroleum policies among member countries.
Since its formation, nine other countries have joined the organization. OPEC has become an integral part of the world's crude oil market, controlling prices and regulating the supply. More information can be found at the official website here http://www.opec.org/opec_web/en/
Members
OPEC consists of twelve current members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. In addition, Indonesia and Gabon are both former members of the organization.
Objectives
The Organization of the Petroleum Exporting Countries seeks to:
Structure
OPEC's functions are split into many different divisions allowing greater efficiency within the organization.
The OPEC Fund for International Development (OFID)
The OPEC Secretariat
Membership Advantages/ Disadvantages
Members of OPEC enjoy a number of advantages. Together, member states are able to fix oil prices of the world market. In addition, OPEC facilitates trade and ensures a stable market for exporting petroleum.
On the other hand, member nations must abide by the rules set forth by the organization. Prices are fixed by the organization so that no one nation may undercut the market. As a result, no one nation can experience a greater gain than the others. Also, as oil supplies begin to deplete, OPEC members will lose their primary source of income, putting each member in danger of economic stagnation or collapse.
Effect on Local Diversity
As the strength and influence of OPEC grows, the local diversity of its member nations will ultimately decrease. The goal of OPEC is to bring wealth into its member nations through the sale of their petroleum resources. With the arrival of wealth comes the arrival of technology. With technology and wealth comes globalization. Consequently, local diversity will be destroyed. In addition, OFID aims to increase the standard of living in the developing world. As a result, it brings technology and workers, ultimately destroying the local diversity that was originally present.
References
Hopkins, S. (2008). Opec: The oil cartel. Energy & Capital, Retrieved from http://www.energyandcapital.com/articles/opec-oil-cartel/686
OPEC. (2012). In Encyclopædia Britannica. Retrieved from http://www.britannica.com/EBchecked/topic/454413/OPEC
OPEC. (2012, March 06). Organization of the petroleum exporting countries. Retrieved from http://www.opec.org/opec_web/en/index.htm
(n.d.). Opec flag. [Web Graphic]. Retrieved from http://www.flagdetective.com/wo-opec-flag.htm
Rodrigue, J. (Photographer). (n.d.). Opec members. [Print Photo]. Retrieved from http://worldgeographyenquiries.blogspot.com/2011/01/what-does-opec-do.html