OPEC

By:Cameron and Kevaunte

Summary

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.

These countries were later joined by Qatar (1961), Indonesia (1962), Libya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973), Gabon (1975) and Angola (2007).

From December 1992 until October 2007, Ecuador suspended its membership. Gabon terminated its membership in 1995. Indonesia suspended its membership effective January 2009.


Output from the Organization of the Petroleum Exporting Countries averaged 29.96 million barrels per day (bpd), up from a revised 29.79 million bpd in January, according to the survey based on shipping data and information from sources at oil companies, OPEC and consultants.

Important Terms

Oil Cartel- A cartel of companies or nations formed to control the production and distribution of oil.


Global Organization- An international alliance involving many different countries.


International Organization- An organization with global mandates, generally funded by contributions from national government.


United Arab Emirates- A federation of seven Arab emirates on the eastern Arabian peninsula; achieved independence from the United Kingdom in 1971; rich in oil reserves.