OPEC
By: Jeremy Hall
BACKGROUND INFORMATION
• The Organization of Petroleum Exporting
Countries (OPEC) was founded in
Baghdad, Iraq, in September 1960, to
unify and coordinate members' petroleum
policies.
• OPEC members' national oil ministers
meet regularly to discuss prices and, since
1982, to set crude oil production quotas.
OPEC
• The Organization of the Petroleum
Exporting Countries (OPEC) is made up
of Algeria, Indonesia, Iran, Iraq, Kuwait,
Libya, Nigeria, Qatar, Saudi Arabia, the
United Arab Emirates and Venezuela
• Since 1965 its international headquarters
are in Vienna, Austria.
What does OPEC do?
• OPEC collects price data on a "basket" of crude oils, and
uses average prices for these oil streams to develop an
OPEC reference price to monitor world oil market
conditions.
• OPEC's reference basket now consists of eleven crude
streams representing the main export crudes of all
member countries, weighted according to production and
exports to the main markets. The crude oil streams in the
basket are: Saharan Blend (Algeria), Minas (Indonesia),
Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq),
Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light
(Nigeria), Qatar Marine (Qatar), Arab Light (Saudi
Arabia), Murban (UAE) and BCF 17 (Venezuela)
OPERATIONS
• OPEC's member countries hold about two-
thirds of the world's oil reserves.
• They supply 40% of the world's oil
production and half of the exports.
• Thanks to OPEC, member nations receive
considerably more for the oil they export.
Other Random Information
• Although seven of the thirteen members
and former members of OPEC are Arabic
nations, the official language of the
organization is English.
• Saudi Arabia has traditionally dominated
the organization, owing to its enormous oil
reserves
Major Events Relating to Topic
• Many things such as hurricane Katrina and the
poor economic situation in Nigeria affect OPEC
and the oil prices it ultimately controls
• OPEC is an important part of everyday life –
every time we go to the pump OPEC is playing a
part in our lives
• Now the US is putting forth some effort to rid
ourselves of our oil addiction by means of
alternate energy sources