OPEC
History
The Organization of Petroleum Exporting Countries (OPEC) was created in September of 1960 by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela in order to co-ordinate and unify petroleum policies. These five countries were eventually joined by Qatar, Indonesia, Socialst Peoples Libyan Arab Jamahiriaya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Gabon. Originally headquatered in Geneva, Switzerland, today OPEC’s headquarters are in Vienna, Austria.
Objectives
• To secure fair and stable prices for petroleum producers
• To ensure an efficient, economic, and regular supply of petroleum to consuming nations
• To guarantee a fair return on capital to those investing in the petroleum industry
OPEC Production v. World Demand
From September 2001 to September 2006, the world demand for oil increased from 75.94 million barrels per day to 83.86 million barrels per day. During this time supply increased from 76.54 million barrels per day to 85.41 million barrels per day. This increase in supply, however, cannot be accounted for by OPEC only production. During this period, OPEC supply increased from 27.2 million barrels per day to 29.72 million barrels per day, while non-OPEC supply increased from 46.02 million barrels per day to 55.69 million barrels per day.
OPEC Production v. The Price of Oil
Logistics and Statistics
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Market Movements
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Comparison
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Affects of Oil on the Potential Level of Output
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Oil: Post 9/11
