Oil is the main source of technical hydrocarbon raw materials in the modern world. The importance of its extraction cannot be overstated. A huge share of world oil exports is provided by only twelve countries, united in the framework of the international intergovernmental organization OPEC.
The term "OPEC" is a transliteration of the English acronym OPEC, which stands for The Organization of the Petroleum Exporting Countries. This name is translated into Russian as “Organization of Petroleum Exporting Countries”.
OPEC is an international intergovernmental organization headquartered in Vienna that was established by the world's largest oil producers and exporters. The main goal of the organization is to develop a strategy for regulating and stabilizing oil prices in the global market, taking into account the commercial interests of the participating countries, regulating and limiting oil production and exports by adopting quotas, and creating guarantees for ensuring uninterrupted oil supplies to consumers.
OPEC was established from September 10 to September 14, 1960 during a conference held in Baghdad by representatives of the first participating countries. The initiator of the creation of OPEC was Venezuela. The first countries to join the organization were Kuwait, Saudi Arabia, Iran, Venezuela and Iraq. Now it also includes the United Arab Emirates, Angola, Qatar, Algeria, Libya, Ecuador and Nigeria (12 countries in total). Gabon (in 1994) and Indonesia (November 1, 2008) left OPEC.
OPEC member countries provide more than 40% of the production volume and more than 50% of oil exports on a global scale. They own about 66% of all reserves of this type of raw materials on the planet. At its core, OPEC is an association of a monopoly type, otherwise called a cartel.
The main activity of the organization is carried out within the framework of the meetings of the energy ministers of the member countries, held twice a year. At these meetings, the state of the international oil market is assessed and a pricing concept is developed depending on the level of demand. Decisions are also taken to stabilize the market situation.
