OPEC

EFFORTS BY:
GARIMA
MAHAK
APRAJITA
VIKRAM
REGIONAL BLOCKS
Regional trade blocks are intergovernmental
associations that manage and promote trade for
specific regions of the world.

They have political implications as well. For example,

EU, world’s largest trading block has harboured
political ambitions. The treaty through which EU was
established calls for joint policies in regard to military,
defense and citizenship.
 DEBATE ON TRADE BLOCS

There are two view regarding the existence of trade blocs.

1. Analysts like Preeg argue that trade blocs are desirable

because they compliment global trade.

2. Other analysts argue that trade blocs are not desirable

because they restrict free trade and lead to
protectionism.
WHY TRADE BLOCS ARE
DESIRABLE?
 They compliment global trade.

 They protect intra regional trade from outside

forces.
 They establish regional security
WHY TRADE BLOCS ARE
UNDESIRABLE?
 Import quotas

 Custom delays

 Subsidies barriers

 Voluntary boycotts and technical barriers.

World’s Total Crude oil Production – 79.85
million b/d
1) Opec Crude oil production – 33.07 million b/d
(41.4%)
2) Non- OPEC Crude oil production - 46.78 million b/d
(58.6%)
Introduction
 OPEC is a permanent intergovernmental
organization which is a cartel of 12 countries
made up of, Angola, Ecuador, Iran, Iraq,
Algeria Kuwait, Libya, Nigeria, Qatar, Saudi
Arabia, the United Arab Emirates, and
Venezuela.
 It coordinates and unifies the petroleum
policies of its Member Countries in order to
secure fair and stable prices for petroleum
producers.
 The main role of OPEC is regular
supplying of petroleum to consuming
nations.
 OPEC has maintained its headquarters in
Vienna and hosts regular meetings among
the oil ministers of its Member Countries.
 OPEC allows oil-producing countries to
guarantee their income by coordinating
policies and prices among them.
 Two-thirds of the oil reserves in the world belong to
OPEC members and the members are responsible for
half of the world's oil exports.

 OPEC represents a considerable political and

economical force.
Objective
OPEC's objective is to co-ordinate and unify petroleum
policies among Member Countries, in order to secure
fair and stable prices for petroleum producers; an
efficient, economic and regular supply of petroleum to
consuming nations; and a fair return on capital to those
investing in the industry.
History
 OPEC created at the Baghdad Conference on
September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi
Arabia and Venezuela.
 These 5 countries are referred to as the ‘Founder
Members of OPEC.
 OPEC has since expanded to include seven more
countries (Algeria, Angola, Indonesia, Libya, Nigeria,
Qatar, and United Arab Emirates) making a total
membership of 12.
 OPEC was registered with the United Nations
Secretariat on 6 November 1962 (UN Resolution No.
6363).
Member countries
Founder Members
 Iran 1960 Middle East
 Iraq 1960 Middle East
 Kuwait 1960 Middle East
 Saudi Arabia 1960 Middle East
 Venezuela 1960 South America
 Full Members
 Algeria 1969 Africa
 Angola 2007 Africa
 Ecuador 1973 South America
 SP Libyan AJ 1962 Africa
 Nigeria 1971 Africa
 Qatar 1961 Middle East
 United Arab Emirates 1967 Middle East
Reason for existence
 Through production quotas of petroleum OPEC
control supply, in order to keep the prices high.
 Resources will continue to Provide income to those
nations in the future.
 OPEC reacts to developments to ensure a balance
between supply and demand
Terms for Membership
 Any country with a substantial net export of crude
petroleum
 Similar interests to those of Member Countries
 If accepted by a majority of three fourths of Full
Members
 Including the concurring votes of all Founder
Members
 The Statute further distinguishes between three
categories of Membership

 Founder Member

 Full Member
 Associate Member
countries which do not qualify for full membership,
but which are nevertheless admitted under such special
conditions as may be prescribed by the Conference
OPEC Conference
 supreme authority of the Organization.
 It consists of a Ministerial-level Delegation from each
Member Country
 The Conference meets twice a year in March and
September and in addition holds Extraordinary
Meetings when required
OPEC FUND
The OPEC fund for international
development is a multilateral development
finance organisation.
It was established in January 1976, by the
member countries of OPEC.
OPEC SECRETARIAT
 The secretariat carries out the executive
functions of the organisation in accordance
with the provisions of the OPEC statute and
under the direction of the board of
directors.
Member countries: Algeria, Angola,
Indonesia, Iran, Iraq, Kuwait, Libya,
Nigeria, Qatar, Saudi Arabia, UAE,
Venezuela.
OPEC Function
 Member Country Delegations meet at the OPEC
Conference to coordinate and unify their national
petroleum policies, in order to promote stability and
harmony in the international oil market.
 They are supported by the OPEC Secretariat
 Directed by the Board of Governors
 Run by the Secretary General
Influence on world economy
 OPEC provide the required amount of oil to all parts
of the world to help their economies
 ISRAEL attack on muslim countries
 OPEC also called on industrialised and developing
countries to come together to solve the problems
facing poor countries and to
 look for ways of establishing a better economic system
by allowing increased trade and exchange of
knowledge.
Social Responsibility
 OPEC is concerned about the environment and wants
to ensure that it is clean and healthy for future
generations.
 OPEC Member Countries have ratified the Kyoto
Protocol to the United Nations Framework Convention
on Climate Change
 OPEC considers that the development of technology
is important for limiting or reducing greenhouse gas
emissions
 Thank you

Thank you