The Organization of the Petroleum
Exporting Countries is an intergovernmental organization of twelve
oil-producing countries made up of Algeria, Angola, Ecuador, Iran, Iraq,
Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and
Venezuela. OPEC has had its headquarters in Vienna since 1965,and hosts regular
meetings among the oil ministers of its Member Countries. Indonesia withdrew in
2008 after it became a net importer of oil, but stated it would likely return
if it became a net exporter again.
Venezuela and Iran were the first countries to
move towards the establishment of OPEC in the 1960,s by approaching Iraq,
Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and
explore avenues for regular and closer communication among petroleum-producing
nations. The founding members are Iran, Iraq, Kuwait, Saudi Arabia, and
Venezuela. Later members include Algeria, Ecuador, Gabon, Indonesia, Libya,
Qatar, Nigeria, and the United Arab Emirates.
In 10–14 September 1960, at the
initiative of the Venezuelan Energy and Mines minister Juan Pablo Pérez Alfonzo
and the Saudi Arabian Energy and Mines minister Abdullah al-Tariki, the
governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to
discuss ways to increase the price of the crude oil produced by their respective
countries.
OPEC was founded to unify and
coordinate members' petroleum policies. Between 1960 and 1975, the organization
expanded to include Qatar (1961), Indonesia (1962), Libya (1962), the United
Arab Emirates (1967), Algeria (1969), and Nigeria (1971). Ecuador and Gabon
were early members of OPEC, but Ecuador withdrew on December 31, 1992 because
it was unwilling or unable to pay a $2 million membership fee and felt that it
needed to produce more oil than it was allowed to under the OPEC quota,
although it rejoined in October 2007. Similar concerns prompted Gabon to
suspend membership in January 1995. Angola joined on the first day of 2007.
Norway and Russia have attended OPEC meetings as observers. Indicating that
OPEC is not averse to further expansion, Mohammed Barkindo, OPEC's Secretary
General, recently asked Sudan to join. Iraq remains a member of OPEC, but Iraqi
production has not been a part of any OPEC quota agreements since March 1998.
In May 2008, Indonesia announced
that it would leave OPEC when its membership expired at the end of that year,
having become a net importer of oil and being unable to meet its production
quota. A statement released by OPEC on 10 September 2008 confirmed
Indonesia's withdrawal, noting that it "regretfully accepted the wish of
Indonesia to suspend its full Membership in the Organization and recorded its
hope that the Country would be in a position to rejoin the Organization in the
not too distant future." Indonesia is still exporting light, sweet
crude oil and importing heavier, more sour crude oil to take advantage of price
differentials (import is greater than export) due to Air pollution in Indonesia
still being low as compared to China or India.
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