OPEC Full Form

OPEC Full Form, OPEC Members, Headquarters, Many Countries

OPEC Full Form Is Organization of the Petroleum Exporting Countries. The Organization of the Petroleum Exporting Countries (OPEC) was established in Baghdad, Iraq, an agreement signed in September 1960 by five countries namely the Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. He was about to become a founding member of the organization.
It is an association of oil-producing countries; Algeria, Angola, Ecuador, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, United Arab Emirates, and Venezuela. OPEC is headquartered in Vienna, Austria; Initially, during the first five years of its existence, it was in Geneva, Switzerland.

पेट्रोलियम निर्यातक देशों का संगठन (ओपेक) बगदाद, इराक में स्थापित किया गया था, सितंबर 1960 में पांच देशों अर्थात् इस्लामिक गणराज्य ईरान, इराक, कुवैत, सऊदी अरब और वेनेजुएला द्वारा हस्ताक्षरित एक समझौता। वह संगठन के संस्थापक सदस्य बनने वाले थे।
यह तेल उत्पादक देशों का एक संघ है; अल्जीरिया, अंगोला, इक्वाडोर, गैबॉन, ईरान, इराक, कुवैत, लीबिया, नाइजीरिया, कतर, सऊदी अरब, संयुक्त अरब अमीरात और वेनेजुएला। ओपेक का मुख्यालय ऑस्ट्रिया के विएना में है; प्रारंभ में, अपने अस्तित्व के पहले पांच वर्षों के दौरान, यह जिनेवा, स्विट्ज़रलैंड में था।

About OPEC

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization of oil-exporting developing countries that coordinates and integrates the petroleum policies of its member countries. OPEC strives to ensure the stabilization of oil prices in international oil markets, to remove harmful and unnecessary volatility, with due respect at all times to the interests of oil-producing countries, and to achieve a stable income. is needed. Them. Equally important is the role of OPEC in ensuring an efficient, economic and regular supply of petroleum to consuming countries and in securing a fair return on capital for those who invest in the petroleum industry.

OPEC was founded on September 14, 1960, as the result of a meeting in the Iraqi capital, Baghdad, attended by the five founding members of the organization: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Once the original agreement to establish OPEC was signed, it was registered with the United Nations Secretariat following United Nations Resolution No. 6363 on November 6, 1962.

Currently, the organization consists of 15 member countries – namely Algeria, Angola, Congo, Ecuador, Equatorial Guinea, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela.

OPEC Full Form: Key Functions:

  • Coordinating the petroleum policies of the member countries.
  • To provide technical assistance and economic assistance to the member countries.
  • And To focus on setting the price of oil on the world market by managing the supply of oil.
  • To organize meetings at regular intervals to discuss important issues related to oil like production, pricing, distribution, etc.
OPEC Full Form
OPEC Full Form

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Brief History:

  • OPEC was established in September 1960 at the Baghdad Conference by five countries (founding members); Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela.
  • In 1962, it was registered by the United Nations as a legally competent international organization.
  • The five founding countries were later joined by nine countries; Qatar (1961), Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975), and Angola (2007).
  • Indonesia suspended its membership in 2009, and rejoined in 2016, but suspended its membership again on 30 November 2016. Therefore, at present, OPEC has 13 member countries.
  • As of 2015, OPEC member countries hold more than 80% of the world’s crude oil reserves, and they account for about 40% of the world’s oil production.

OPEC’s objective

“To coordinate and integrate the petroleum policies of its member countries and to secure an efficient; economic, and regular supply of petroleum to consumers; a steady income for producers, and a fair return on capital for those in oil markets. So ” To ensure the stabilization of investments in the petroleum industry,” according to the OPEC website.

The group is dedicated to finding solutions to keep oil prices stable and free from major changes in the global market. While protecting the interests of the member countries; it also ensures that they get a steady flow of revenue from the uninterrupted supply of crude oil to other countries. The founding nations are full members of OPEC. A full member is any country that chooses to join and whose application is accepted by the organization. These countries should export a significant amount of crude petroleum. Membership in OPEC is granted only after a vote of at least three-fourths of its full members. Countries can also apply for associate membership if they meet certain criteria.

OPEC Full Form: Special points to consider

Oil prices and OPEC’s participation in the global petroleum market are influenced by various factors. The introduction of new technology, particularly fracking in the United States; has had a significant impact on global oil prices, reducing OPEC’s market power. As a result, global oil production rose while prices fell, putting OPEC in a precarious position. Until mid-2016, OPEC opted to maintain higher production levels and, consequently, lower prices; in an effort to drive high-cost producers out of the market and regain market dominance. However, on concerns that the economic slowdown would cut supplies; OPEC slashed output by 1.2 million barrels per day for six months; extending the deal for another nine months in July 2019.

Oil demand fell during the worldwide crisis that began in 2020. As the world faced a demand slashing lockdown; there was an overflow of supply with producers with no place to store it. This resulted in a drop in oil prices, as well as a price war between Russia and Saudi Arabia. As a result, between May and July 2020, the organization agreed to reduce production by 9.7 million barrels per day. As a result of continued volatility in oil prices; OPEC decided to reduce production to 7.2 million barrels per day by January 2021.

Innovation and new, green technology present significant challenges to OPEC. Due to rising oil prices, some oil-importing countries are turning to unconventional and clean energy sources. Alternative energy sources, such as shale production, are among these options.

OPEC Full Form: Advantages and Disadvantages

In the crude oil industry, there are many advantages to running a cartel like OPEC. First, it encourages cooperation among member states, allowing them to reduce political tensions to some degree. Because the main purpose of the organization is to keep oil production and prices stable, it can have some effect on the output of other countries.

कच्चे तेल उद्योग में ओपेक जैसा कार्टेल चलाने के कई फायदे हैं। सबसे पहले, यह सदस्य राज्यों के बीच सहयोग को प्रोत्साहित करता है, जिससे उन्हें कुछ हद तक राजनीतिक तनाव कम करने की अनुमति मिलती है। चूंकि संगठन का मुख्य उद्देश्य तेल उत्पादन और कीमतों को स्थिर रखना है, इसलिए इसका अन्य देशों के उत्पादन पर कुछ प्रभाव पड़ सकता है।

OPEC’s market influence has been heavily challenged. The group holds tremendous weight in these markets as its member countries hold the bulk of crude oil reserves (79.4 percent according to the OPEC website). OPEC members as a cartel have a strong objective to raise oil prices as high as possible while maintaining their market share.

ओपेक के बाजार प्रभाव को भारी चुनौती दी गई है। इन बाजारों में समूह का जबरदस्त वजन है क्योंकि इसके सदस्य देशों के पास कच्चे तेल का बड़ा भंडार है (ओपेक वेबसाइट के अनुसार 79.4 प्रतिशत)। एक कार्टेल के रूप में ओपेक के सदस्य अपने बाजार हिस्से को बनाए रखते हुए तेल की कीमतों को जितना संभव हो उतना ऊंचा उठाने का एक मजबूत उद्देश्य रखते हैं।

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