The Organization of the oil exporting countries (OPEC) or in English Organization off Petroleum Exporting Countries (OPEC) is an intergovernmental organization (a Cartel) of country aiming at negotiating with the oil companies for all that touches with the production of Pétrole, its Prix and the future rights of Concession S.

Current (September the 2006) president of OPEC is the minister Nigerian oil Edmund Daukoru.

History

OPEC is created the September 14th 1960, at the time of the Conference of Baghdad, mainly on the initiative of the Shah of Iran Mohammad Reza Pahlavi and of the Venezuela to mitigate the fall in the price of the Baril (less than 5 American dollars at the time). In the beginning, only five countries were members: the Saudi Arabia, the Iran, the Iraq, the Kuwait and the Venezuela.

They were joined thereafter by other producer countries:

During the first five years of its existence, its seat is located at Geneva, in Suisse. It is moved on September 1st 1965 with Vienna in Austria.

The May 12th 2006, at the time of a top European Union - Latin America, the president of the Bolivia Evo Morales stated with journalists to want that Bolivia belongs to OPEC. Nevertheless, the country is only one minor oil producer. The previous day, OPEC was committed lending to a Interest rate reduces 10 million American dollars over 20 years to Bolivia, to help its public universities.

At the end of November 2006, it was announced, that at the end of long negotiations two new countries agreed to join OPEC. The Angola (second oil producer of sub-Saharan Africa after Nigeria with 1,4 million barrels per day, and 2 million barrels at the end of 2007) became it twelfth member of OPEC at January 1st, 2007 . It will be followed by the Ecuador, which returns in the organization. Together, they will contribute to the production of OPEC with height of approximately 2,5 million barrels per day.

Objectives

The creation of OPEC results owing to the fact that until in the Années 1950 - 1970, the oil companies had the full powerss on the course of oil and imposed their prices on the producer countries. Thus the principal producer countries decided to gather so as to be able to influence the course of oil. The takeover of the production of oil was done by a policy of Nationalization.

Being Masters of their production, the producer countries can in this manner of influencing the course of the barrel of petrol and thus of increasing their incomes.

Operation

OPEC seeks to control the production and the price by a coordinated effort of its Member States, in particular by founding a system of production quotas. The members thus constitute a Cartel producers. They agree on the quantity of exported oil, which influences the price of the Marché. In 2005, its Member States have 78,4% of the estimated oil reserves and provide 43% of the worldwide production of crude oil.

The oil transactions being done in American dollars, the change of the value of the dollar compared to the Monnaie S of the producer countries affects the decisions of OPEC as for the quantity to be produced. For example, when the dollar drops compared to the other currencies, the States of OPEC see their incomes decreased for the purchases carried out in other currencies, which reduces their purchasing power since they continue to sell their oil in dollars.

The decisions of OPEC have an important influence on the world rate of oil. An example is the Oil crisis of 1973 at the time of the Guerre of Kippour: the embargo of OPEC towards the Western countries which support Israel causes a multiplication by four of the course for five months (October 17th 1973 - March 18th 1974). Thereafter, the January 7th 1975, the countries of OPEC are intended to increase the rough oil price of 10%.

Contrary to others Trust S, OPEC succeeded in raising the oil price for long periods. The success of the organization comes from the will of the Saudi Arabia to accept the cheatings of the other members and to lower his production when the others exceed their quotas. Thus the majority of the members produce to the maximum of their capacity and Saudi Arabia is the only one to have a capacity of reserve and the possibility of increasing the production so necessary.

The rule succeeded very well in the past, leading the course of the crude to join levels which had been reached only by refined products. However, the capacity of OPEC to assemble the prices has limits. The increase brings a fall of consumption and could cause a reduction in the Revenu S. Moreover, systematic increases could encourage the use of alternative energies. Lastly, an increasing share of the producers does not form part of OPEC.

In addition, the futures markets of London (ICE) and of New York (NYMEX) play a part growing in the determination of the courses, thus withdrawing capacity with OPEC. According to nonofficial sources, the Iran seeks to establish a countervailing power at these markets while envisaging to open in March 2006 a Stock Exchange of Oil on its own land, where the oil of members of OPEC would be exchanged; these transactions would be carried out moreover in Euros and either in dollars.

Until the War of the Gulf of 1990-1991, the Iraqi president Saddam Hussein asked OPEC to assemble the courses of oil in order to help the Iraq and other Member States to reabsorb to them Dette.

Member States

The 13 Member States (2 new since January 1st, 2007) are: ; Africa

First country to have succeeded in nationalizing its hydrocarbon industry the February 24th 1971, Algeria remains an important and strategic member of OPEC.

Angola

One of the largest grounds of explorations oil ten last years, the country posts a growth of production to two digits. Nevertheless the structure of its oil industry is not that of the members of OPEC: the sector is almost entirely with the hands of the multinationals, and the rate of Déplétion S of its layers is high.

Libya

the production of this country should strongly set out again with the rise in the years which come, the lifting of the Western sanctions allowing of new investments. The country offers a good potential of exploration, its place in OPEC should thus progress.

Nigeria

Nigeria is a member enough stirring up of the organization. Its production strongly increases thanks to development offshore major, and the country rather often exceeds its quota. It has several times required the increase in its quota under the threat to leave OPEC. The reason east can be that the oil industry of the country is nationalized OPEC: it is almost entirely with the hands of the multinationals.

; the Middle East Saudi Arabia

the historical leader of OPEC is based on the vastest conventional crude oil reserves of the World, its statute of larger producer and exporter, and the fact that it concentrates almost all the capacity of reserve. The country needs enormous investments permanently to replace the production lost by the exhaustion of the layers (seems it some 800.000 bbls/j each year, and its production includes/understands an increasing oil share of low quality to average.

Seul Abou Dabi is really member of OPEC. The Emirates are a confederation creates in 1972, only Abou Dabi was already member of OPEC and the other emirates are not considered dependant by the quotas - but their production is in any event weak and declining. Abou Dabi is a large producer, but all its significant layers have been exploited for more than 30 years.

Iraq

the statute of Iraq is to some extent outstanding since the recent conflict. The country is still nominally member of OPEC, but is not included any more in the quotas. The country could have reserves among vastest of OPEC, but the new mode did not clarify its intentions yet.

Iran

Iran is a historical pillar of OPEC, and shows its determination again today to use the oil weapon like means of pressure against the American imperialism. Its large layers know a serious déplétion, the country hardly managing to produce as much as the production quotas authorize there.

This country with the characteristic to have reserves concentrated mainly in only one layer. This layer seems to have reached the peak of production, and the official reserves are largely disputed, including inside the country, in a context of great political changes.

Qatar

the conventional crude reserves of this country are relatively modest, and the production should decline in the near future. It will be largely replaced by the Natural gas, the condensates and the gross of synthesis provides by the North dome, larger layer gas of the world, but these products escape the quotas from OPEC.

; South America

This country returns in OPEC after having left it in 1992. It is a small oil producer compared to the other members, but its reserves are relatively important (approximately 5 billion barrels).

Venezuela

Under the presidency of Hugo Chavez, this country took a role much more active in OPEC, contributing to give again with this one its statute of geopolitical weapon. The country currently tries to classify in " reserves prouvées" its vast reserves of bituminous Sands. That undoubtedly formed part of a vaster operation aiming at disputing the Saoudi leadership in the organization.

; Southeast Asia

the production of oil indonésienne is declining since 1997, and the country became importer Net. Its membership of OPEC thus does not have really any more of direction, and the country plans to leave the organization.

Certain important oil-producing countries are not members of OPEC. It is the case of the Canada, of the Mexico, the the United Kingdom, the Norway, the the United States, the Russia and Oman.

See too

References

Random links:Equip with Guadeloupe of football | Partitioning of data | Buddy Lazier | Bell VDP | Nazim Haqqani

© 2007-2008 speedlook.com; article text available under the terms of GFDL, from fr.wikipedia.org