Organization of Petroleum Exporting Countries

1. Organization of Petroleum
Exporting Countries

2. ESTABLISHMENT
 Permanent and intergovernmental organization.
 Founded on September 10-14, 1960.
 Founding members- Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela.
 A collective act of sovereignty by oil exporting nations, a
turning point in state control over natural resources.
 OPEC’s headquarters, first located in Geneva, was moved
to Vienna in 1965.

3. BRIEF HISTORY
1960
 OPEC managed to prevent price reductions, but its
success encouraged increases in production,
resulting in a gradual decline in nominal prices.
 It adopted a ‘Declaratory Statement of Petroleum
Policy in Member Countries’ in 1968.
1970
 Complete sovereignty over petroleum resources.
 Oil prices rose steeply.
 In 1976, OPEC Fund for International Development

4. 1980
 Prices began to weaken; dropped to $10 per barrel.
 Iran-Iraq war. Saudi Arabia stopped defending the price of
oil, instead concentrated on defending its market share.
 Persian-Gulf war, Iraq invades Kuwait. No stabilization on
prices and disruption in international market began to rise.
1990
 Members reunited. Oil prices began to increase.
 Greater regionalism, globalization, the communications
revolution and other high-tech trends.
2000
 Oil was used increasingly as an asset class. Prices soared
till 2008.
 International efforts to reduce the burning of fossil fuels,
sustainable development; a long-term strategy in 2005.

5. 1973 OIL EMBARGO
 Rise in oil prices from $3 per barrel to $12.
 Gas rationing.
 The Oil Embargo of 1973 had a lasting effect on
the United States.
• Recommended citizens to reduce their speed
for the sake of conservation, and later.
• Daylight saving time.
• Fuel efficient cars were manufactured.
 Global economic recession.

6. PRESENT DAY, OPEC
 AIM- coordinate and unify the petroleum policies of its
members and to "ensure the stabilization of oil markets in
order to secure an efficient, economic and regular supply
of petroleum to consumers, a steady income to
producers, and a fair return on capital for those investing
in the petroleum industry.
 Abdallah Salem el-Badri, the Secretary General of OPEC
since 2007.
 Crude oil benchmark- A crude oil that serves as a
reference price for buyers and sellers of crude oil.
OPEC reference basket of crudes- Saharan Blend , Girassol,
Oriente, Iran Heavy, Basra Light, Kuwait Export, Es Sider, Bonny
Light, Qatar Marine, Arab Light, Murban and Merey.
North Sea Brent crude oil is the benchmark for half of global oil
trade.
The other well-known classifications or benchmarks are West
Texas Intermediate (WTI), Dubai Crude, Oman Crude and Urals

7.  Nigeria is the largest producer of sweet oil in
OPEC.
 OPEC spare capacity "provides an indicator of the
world oil market's ability to respond to potential
crises that reduce oil supplies.“
Saudi Arabia is the largest oil exporter in the
world and largest oil producer of the OPEC
nations. It has the greatest spare capacity at
about 1.5 million barrels per day to 2 million
barrels per day.

8. NORTH AMERICA CRUDE VS OPEC
 The U.S. Energy Information Administration, defines spare capacity for
crude oil market management, "as the volume of production that can be
brought on within 30 days and sustained for at least 90 days."
For OPEC, spare capacity "provides an indicator of the world oil market's
ability to respond to potential crises that reduce oil supplies.“
 Some commentators consider that the United States was a ”de
facto” member during its formal occupation of Iraq due to its leadership of
the Coalition Provisional Authority. But no US representative attended in
an official capacity.
 1973- Oil Embargo
 Global market 2014-
According to the New York Times the oil-drilling boom in the United States
has increased oil production by over 70% since 2008 and has reduced the
United States oil imports from OPEC by 50%.
In 2011 the United States imported 1.7 million barrels per day. By 2013
crude oil imports were reduced to 1.0 million barrels per day.

10. ABOUT OPEC SYSTEMS
 Established in 1992, OPEC Systems began by providing solutions to
problems of Oil Pollution and Environmental Control (OPEC).
 However, OPEC has since expanded its range of products and services
to include the six main areas of:
 Defence:
 CBRN equipment - detection, decontamination, protective clothing
and masks, temporary shelters and accessories
 Geophysical survey and EOD investigation - Removal of toxic
materials, munitions recovery and underwater EOD;
 Industrial:
 Bulk fuel and tank management - Facility management, civil and
structural engineering services, industrial demolition and national
warehousing services
 Hazardous Materials Remediation;
 Marine:
 Marine spill response equipment - Oil skimmers, transfer pumps,
towable bladders and waste water tanks
 Oil spill response equipment and services - Repair, storage and
recovery, consultancy and training, wildlife rehabilitation and
decontamination
 Industrial spill control equipment;

11.  Subsea: Inland, off shore and near shore diving
- EOD diving, rig and offshore platform
maintenance, bridge, wharf and pier
maintenance, vessel and dam maintenance;
 Enviro: Class 'A' asbestos removal,
contaminated soil remediation, radiological and
environmental monitoring and waste
disposal; and
 Health: Temporary, mobile field hospitals - Field
medical supplies, temporary morgues, field
support, decontamination shelters and
showers, major incident response.

12. MEMBERSHIP
OPEC has twelve member countries: six in the Middle East, four in Africa, and two in
South America.
 Algeria
 Angola
 Ecuador
 Iran
 Iraq
 Kuwait
 Libya
 Nigeria
 Qatar
 Saudi Arabia
 United Arab Emirates
 Venezuela
Former members-
 Gabon
 Indonesia

13. MAJOR OIL PRODUCING MEMBERS
IN OPEC
 Saudi Arabia
 Oil reserves in Saudi Arabia are the second largest
claimed in the world, estimated to be 267 billion
barrels, including 2.5 Gbbl in the Saudi–Kuwaiti
neutral zone.
 One-fifth of the world's total conventional oil
reserves.
 Saudi Aramco, (formerly Arabian-American Oil
Company) is the Saudi Arabian national oil
company.
 World’s largest company in 2010. With total assets
at about US$30 trillion.
 It has both the world's largest proven crude oil
reserves, at more than 260 billion barrels and

14.  Venezuela
 In November 2013 Venezuela produced 2.69 million
barrels per day.
 In 2014 the production fell to 2.47 million barrels per
day.
 In 2014 96 per cent of Venezuela's dollar earnings
came from its oil exports.
 Nigeria
 Largest exporter of crude oil in Africa. Largest
producer of sweet crude in OPEC.
 Crude is free of sulphur.
 Bonny light.

15. THANK YOU