Q. Consider the following statements regarding the Organization of the Petroleum Exporting Countries (OPEC):
1. OPEC is a permanent, Informal organization.
2. OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.
Which of the statements given above is/are correct?
The Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
- OPEC is a permanent, intergovernmental organization.
- The current OPEC members are the following: Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, and the Republic of the Congo, Saudi Arabia (the de facto leader), the United Arab Emirates and Venezuela. Ecuador, Indonesia and Qatar are former members.
- OPEC’s objective is to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
- OPEC membership is open to any country that is a substantial exporter of oil and which shares the ideals of the organization.