OPEC Organization of Petroleum Exporting

Countries

• Founded 1960 by 5 member nations1. Iran, Iraq, Kuwait, Saudi Arabia, Venezuela

2. HQ = Vienna, Austria

3. Several other countries have joined since them (Libya, UAE, Algeria, Nigeria, Ecuador, Angola, Qatar)

OPEC Organization of Petroleum Exporting

Countries

• Purpose1. Coordinate /unify policies to secure fair and

stable prices for petroleum producers

2. To supply an efficient and regular system of petroleum to consuming nations

1. If there is a large supply of oil, prices go down and OPEC cuts production

2. If prices are too high, OPEC increases oil supply

• OPEC meetings1. 2x/year to look at market conditions and set quotas2. Special meetings can be called to alter quotas

depending on international politics

Supply & demand

42

HOW MANY GALLONS OF OIL ARE IN EACH BARREL?

Daily Oil ConsumptionOPEC’s World Energy Model (OWEM)

OPEC and the Oil Market OPEC does not control

the oil market, but it does have a strong influence on the market

OPEC Member Countries produce 81% of the world’s crude oil

66% in the Middle East

Oil ReservesOPEC COUNTRIES CRUDE OIL RESERVES

(BILLIONS)

VENEZUELA 298.4

SAUDI ARABIA 265.8

IRAN 157.8

IRAQ 144.2

KUWAIT 101.5

U.A.E. 97.8

PERCENTAGE(%)

OPEC COUNTRIES- 1206 billion barrels