OPEC - 10 Interesting Facts

The Organization of the Petroleum Exporting Countries ( OPEC ) plays a key role in the global economy, influencing oil prices and energy policy. Here are 10 interesting facts about this influential organization:

• 1. Foundation and First Members

  OPEC was founded in Baghdad, Iraq, in September 1960 by five countries: Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

• 2. Initial Purpose

  OPEC was originally created to counter the influence of the so-called "Seven Sisters" - a group of transnational oil companies that dominated the global oil market and dictated prices.

• 3. Headquarters

  Although OPEC was founded in Baghdad, its permanent secretariat moved to Vienna, Austria, in 1965, where it remains to this day. Interestingly, Austria itself is not an oil exporter.

• 4. Current Composition

  OPEC membership has fluctuated over the years. It currently consists of 12 countries: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela.

• 5. Former Members

  Countries such as Ecuador, Indonesia, and Qatar have withdrawn from OPEC in the past. Qatar, a major exporter of liquefied natural gas (LNG), left the organization in 2019 to focus on its gas industry.

• 6. OPEC+

  In recent years, OPEC has expanded its influence through the "OPEC+" alliance, which brings together non-OPEC oil-producing countries, most notably Russia , to coordinate production cuts and stabilize global oil markets.

• 7. Market Share

  OPEC member countries collectively hold a significant portion of the world's proven crude oil reserves and account for a significant share of global oil production, giving them significant influence over international oil prices.

• 8. Decision Making

  OPEC decisions are usually made by consensus among member countries, often after lengthy negotiations and sometimes disagreements over production quotas.

• 9. Oil Embargo of 1973