OPEC: decoding and functions of the organization. List of OPEC countries

The structure, called OPEC, whose abbreviation is, in principle, familiar to very many, plays a significant role in the global business arena. When was this organization created? What are the main factors that predetermined the establishment of this international structure? Today's trend, reflecting the decline in oil prices, can we say that we are predictable and therefore controlled for today's exporting countries of "black gold"? Or are the OPEC countries highly likely to play the role of the second plan in the global political arena, compelled to reckon with the priorities of other powers?

OPEC: general information

What is OPEC? The interpretation of this abbreviation is quite simple. True, before it is produced, it is necessary to transliterate it correctly into English - OPEC. It turns out - the Organization of Petroleum Exporting Countries. Or, the Organization of the Petroleum Exporting Countries. This international structure was created by large oil-producing countries with the aim, as analysts believe, of influencing the market of "black gold" in terms, above all, prices.

Members of OPEC - 12 states. Among them are the Middle Eastern countries - Iran, Qatar, Saudi Arabia, Iraq, Kuwait, the United Arab Emirates, three states from Africa - Algeria, Nigeria, Angola, Libya, and Venezuela and Ecuador, which are located in South America. The headquarters of the organization is located in the Austrian capital - Vienna. The Organization of the Petroleum Exporting Countries was founded in 1960. By the current moment, OPEC countries control about 40% of the world export of "black gold".

History of OPEC

OPEC was founded in the capital of Iraq, the city of Baghdad, in September 1960. The initiators of its creation were large world oil exporters - Iran, Iraq, Saudi Arabia, Kuwait, and Venezuela. According to modern historians, the period when these states came up with an appropriate initiative coincided with the time when the decolonization process was active. Former dependent territories were separated from their metropolises in both political and economic terms.

The world oil market was controlled mainly by Western companies, such as Exxon, Chevron, Mobil. There is a historical fact - the cartel of the largest corporations, including those named, came up with a decision to cut prices for "black gold." This was due to the need to reduce the costs associated with oil rent. As a result, the countries that established OPEC set a goal - to gain control over their natural resources outside the field of influence of the world's largest corporations. In addition, in the 1960s, according to some analysts, the economy of the planet did not experience such a large demand for oil - the supply exceeded demand. Therefore, OPEC's activities were designed to prevent a decline in global prices for "black gold".

The OPEC Secretariat was first established. He "registered" in Geneva, Geneva, but in 1965 "moved" to Vienna. In 1968, the OPEC meeting was held, at which the organization adopted the Declaration on Petroleum Policy. It reflected the right of States to exercise control over national natural resources. By that time, the largest oil exporters in the world - Qatar, Libya, Indonesia, as well as the UAE - have joined the organization. In 1969 Algeria entered OPEC.

According to many experts, the impact of OPEC on the global oil market increased especially in the 1970s. This was largely due to the fact that the governments of the countries belonging to the organization took over the control of oil production. Analysts believe that in those years OPEC could really directly affect world prices for "black gold". In 1976, the OPEC Fund was created, which dealt with issues of international development. In the 1970s, several other countries joined the organization - two African countries (Nigeria, Gabon), one from South America - Ecuador.

By the early 1980s, world oil prices had reached very high levels, but in 1986 they began to decline. Members of OPEC for a while reduced their share in the global market of "black gold". This led, as some analysts note, to significant economic problems in the countries that make up the organization. At the same time, by the beginning of the 1990s, oil prices had again risen - to about half of the level reached in the early 1980s. The share of OPEC countries in the global segment also began to grow. Experts believe that this kind of effect was largely due to the introduction of such a component of economic policy as quotas. A pricing methodology was also introduced, based on the so-called "OPEC basket".

In the 1990s, world oil prices as a whole were not, according to many analysts, somewhat lower than the expectations of the countries that make up the Organization. An important barrier to the growth of the value of "black gold" was the economic crisis in South-East Asia in 1998-1999. At the same time, by the end of the 1990s, the specifics of many industries began to demand more oil resources. There are especially energy-intensive businesses, the processes of globalization have become particularly intense. This, according to experts, has created some conditions for the rapid growth of oil prices. It should be noted that in 1998, Russia became an observer in OPEC, an oil exporter, one of the largest players of the global market of "black gold" at that time. At the same time Gabon left the organization in the 90s, and temporarily suspended its activities in the structure of OPEC Ecuador.

In the early 2000s, world oil prices began to grow little by little and for a long time were sufficiently stable. However, soon began their rapid growth, peaked in 2008. By that time, Angola joined the OPEC. However, in 2008, crisis factors intensified sharply. In autumn 2008, the price of "black gold" fell to the level of the early 2000's. At the same time, during 2009-2010 prices rose again and continued to be at a level that the main oil exporters, economists believe, were right to consider the most comfortable. In 2014, due to a whole range of reasons, oil prices have systematically decreased to the level of the mid-2000s. OPEC, however, continues to play a significant role in the global market of "black gold".

Objectives of OPEC activities

As we have already noted above, the original purpose of creating OPEC was to establish control over national natural resources, as well as influence on world pricing trends in the oil segment. As modern analysts believe, in principle this goal has not changed since then. Among the most urgent tasks, not counting the main task, for OPEC is the development of the oil supply infrastructure, the competent investment of the proceeds from the export of "black gold".

OPEC as a player of the world political arena

Members of OPEC are united in a structure that bears the status of an intergovernmental organization. This is how it is registered with the UN. Already in the first years of its work, OPEC established relations with the UN Economic and Social Council and participated in the United Nations Conference on Trade and Development. Several times a year, meetings are held with the participation of the highest government positions of the OPEC countries. This kind of events are designed to develop a joint strategy for further building up activities on the global market.

Oil reserves in OPEC

Members of OPEC have total oil reserves, which are estimated at more than 1199 billion barrels. This is approximately 60-70% of the world's reserves. At the same time, according to some experts, only Venezuela has reached peak oil production. The remaining countries that are part of OPEC, can still increase their performance. At the same time, the views of modern experts on the prospects for growth in the production of "black gold" by the Organization's countries diverge. Some say that the states that are part of OPEC will seek to increase the relevant indicators - in order to maintain current positions in the global market.

The fact is that now the US is an oil exporter (largely a shale type), which in potential can significantly push OPEC countries on the world stage. Other analysts believe that an increase in production is not profitable for the member countries of the Organization - the increase in supply on the market reduces the price of "black gold".

Managment structure

An interesting aspect in the study of OPEC is the characterization of the organization's management system. The leading body of OPEC governance is the Conference of Participating States. It is usually convened 2 times a year. The OPEC meeting in the format of the Conference presupposes discussion of issues related to admission to the organization of new states, adoption of the budget, personnel appointments. Actual topics for the Conference are formulated, as a rule, by the Board of Governors. The same structure oversees the implementation of approved decisions. In the structure of the Board of Governors there are several departments responsible for a special range of issues.

What is the "basket" of oil prices?

Above we said that one of the price benchmarks for the countries of the Organization is the so-called "basket". What it is? This is the arithmetic mean between some brands of oil produced in different OPEC countries. The interpretation of their names is often associated with a variety - "light" or "heavy", as well as the state of origin. For example, there is the Arab Light brand - light oil produced in Saudi Arabia. There is Iran Heavy - a heavy oil of Iranian origin. There are such brands as Kuwait Export, Qatar Marine. The maximum value of the "basket" reached in July 2008 - 140.73 dollars.

Quotas

We noted that there are quotas in the practice of the Organization's countries . What is it? These are restrictions on the daily volume of oil production for each of the countries. Their magnitude may change following the results of the corresponding meetings of the Organization's management structures. In the general case, with a decrease in quotas, there is reason to expect a supply shortage in the world market and, as a result, a rise in prices. In turn, if the corresponding restriction remains unchanged or increases, the quotations for "black gold" may tend to decrease.

OPEC and Russia

As you know, the main exporters of oil in the world are not only the OPEC countries. Among the largest global suppliers of "black gold" on the global market is Russia. There is an opinion that in some years there was a confrontational relationship between our country and the Organization. For example, in 2002, OPEC sent a request to Moscow - to reduce oil production, as well as its implementation on the global market. However, as shown by public statistics, the export of "black gold" from the Russian Federation from that moment has not actually decreased, but, on the contrary, has grown.

The confrontation between Russia and this international structure, analysts believe, ceased during the years of rapid oil price growth in the mid-2000s. Since then, there has been a tendency for the Russian Federation and the Organization to engage in constructive interaction, both at the level of intergovernmental consultations and in the aspect of cooperation between the oil businesses. OPEC and Russia are exporters of "black gold". In general, it is logical that their strategic interests on the global arena coincide.

Prospects

What are the prospects for the future partnership of the OPEC member states? The interpretation of this abbreviation, which we gave at the very beginning of the article, indicates that the basis of the common interests of the countries that have established and continue to support the functioning of this organization is specifically the export of "black gold." At the same time, as some modern analysts believe, in order to further optimize business strategies combined with the implementation of national political interests, the countries that are members of the Organization will also have to take into account the opinion of oil-importing countries in the coming years. With what it can be connected?

First of all, the fact that the comfortable import of oil for countries in need is a condition for the development of their economy. National economic systems will develop, production will grow - oil prices will not fall below the critical mark for the experts of "black gold" mark. In turn, the rise in cost of production, which is largely due to excessive fuel costs, is likely to lead to the closure of energy-intensive capacities, their modernization in favor of the use of alternative energy sources. As a consequence, global oil prices may decline. Therefore, the main leitmotif of the further development of the OPEC countries, as many experts believe, is a reasonable compromise between the realization of their own national interests and the position of the states importing "black gold."

There is another point of view. According to her, oil in the next few decades will not be an alternative. And therefore the countries of the Organization have all chances to strengthen their positions in the world business arena, and at the same time to gain advantages in the aspect of implementing political interests. In general, with possible short-term recessions, oil prices will remain high, based on the objective needs of producing economies, inflationary processes, and in some cases, the relatively slow development of new fields. The offer in certain years can not keep up with demand at all.

There is also a third point of view. According to her, oil importing countries may be in a more advantageous position. The fact is that the current price indicators for "black gold", according to analysts who adhere to the concept in question, are almost completely speculative. And in many cases - manageable. A cost-effective world price for the oil business for some companies is $ 25. This is much lower than even the current price of "black gold" is very likely uncomfortable for the budgets of many exporting countries. And therefore the countries of the Organization within the concept of some experts are assigned the role of a player who can not dictate their terms. And moreover, to some extent dependent on the political priorities of many oil importing countries.

Note that each of the three points of view reflects only the assumptions, theories voiced by different experts. The oil market is one of the most unpredictable. Forecasts concerning the prices for "black gold" and put forward by different experts, can be absolutely dissimilar.