Presented By: Osama Khan

Presented To: Dr. Abdul Latif

Roll Number: 2729
The Organization of the Petroleum Exporting
Countries (OPEC) is a permanent,
intergovernmental Organization, created at the
Baghdad Conference on September 10–14,
1960, by Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela
 OPEC mission is to coordinate and unify
petroleum policies of member countries

 Ensure the stabilization of oil prices

 Regular supply of petroleum to its consumers

 Fair return on capital to those investing in

petroleum industry
 Before 1970
No Major Role By OPEC

 During 1970
Power of prices setting shifted From MNC Oil Companies to OPEC

 By 1973
OEPC countries changed the pricing system

 1975-1985
Oil production Increased from 48% to 71 %

 Mid 1980
Survival became Uncertain
Market share fell from 52% to 30 % in 1985
 Algeria
 Angola
 Ecuador
 Iran
 Iraq
 Kuwait
 Libya
 Nigeria
 Qatar
 Saudi Arabia
 UAE
 Venezuela
 Founder Members of the org are those
countries which were represented at OPEC first
conference held in Baghdad and signed
original Agreement
 Full Members are founder members plus those
whose applications of membership have been
accepted
 Associate members are those which do not
qualify for the membership
 Meets every March & September

 Unify policies and promote stability and

harmony Among member countries

 New member Applications are discussed

 Budgets are Decided Upon

 The OPEC Secretariat is the executive organ of
the Organization of the Petroleum Exporting
Countries (OPEC). Located in Vienna, it also
functions as the Headquarters of the
Organization
 It is responsible for the implementation of all
resolutions passed by the Conference and
carries out all decisions made by the Board of
Governors. It also conducts research, the
findings of which constitute key inputs in
decision-making.
 Many non-OPEC members also voluntarily
adjust their oil production in response to
OPEC's decisions. In the 1990s, they increased
production to take advantage of OPEC's
restraints. That resulted in low oil prices and
profits for everyone. These cooperating non-
OPEC members are Mexico, Norway, Oman,
and Russia.
 Industries

Shortage of Oil Supplies=High Price of Oil

High Transportation Cost

Slow Economic Growth

 OPEC recognizes the need to protect the
environment and support sustainable
development.
 All OPEC Member Countries are signatories to
the United Nations Framework Convention on
Climate Change (UNFCCC) and regard
environmental protection as a high priority.
 OFID was conceived at the Summit of the Sovereigns
and Heads of State of the OPEC Member Countries
(MCs) held in the Algerian capital, Algiers, in March
1975.

 The resources of OFID consist mainly of voluntary

contributions by OPEC MCs and income derived from
OFID’s investments and loans.

 OFID’s operations were launched in August 1976 with

initial resources of about US$800m. This amount has
since then been replenished four times. The last
replenishment of US$1b was approved by the
Ministerial Council in June 2011
 All non-OPEC developing countries are, in
principle, eligible for OFID assistance.
However, the least developed
 In April 2001, OPEC collaborated with five other
international organizations
(APEC, Eurostatt, IEA, OLADE , UNSD) to improve the
availability and reliability of oil data.

 They launched the Joint Oil Data Exercise, which in 2005

was joined by IEF and renamed the Joint Organizations Data
Initiative (JODI), covering more than 90 percent of the global
oil market.

 Since 2007, OPEC has published the "World Oil Outlook"

(WOO) annually, in which it presents a comprehensive
analysis of the global oil industry including medium- and
long-term projections for supply and demand.
 https://www.opec.org/opec_web/en/about_
us/24.htm
 https://www.opec.org/opec_web/en/about_
us/716.htm
 https://www.opec.org/opec_web/en/about_
us/26.htm
 https://en.wikipedia.org/wiki/OPEC