![]() As the green movement gains prominence and crude oil deposits continue to deplete, the world is in search of alternative sources of energy among this is the nuclear power. Recently production of oil in the United States has been on the rise, catapulting it to the leading position, slightly ahead of Saudi Arabia at 11,973000 bbl/day in 2014 to Saudi Arabia’s 11,624,000 bbl/day. Approval of a new member country is a process it requires three-fourths of the existing members to agree, including all five founder states. In 2015, Sudan formally applied to join OPEC, and its approval is still pending. The OPEC operates on principles of unanimity, with each member state having one vote and paying an equal membership fee into the annual budget. The Conference holds meetings at OPEC’s headquarters in Vienna at least twice each year extraordinary sessions are also held when necessary. The secretary general of OPEC is the chief executive. The supreme authority of the organization is the OPEC Conference, which comprises delegations headed by the oil ministers of the member states. OPEC's mission is to unify and coordinate the policies of its member states that concern petroleum, to ensure oil markets are stabilized, with the intention of securing efficient, economical and regular petroleum supply for consumers, a steady income for producers, and a fair return on capital for investors in the industry. When the targets are low, the price of oil rises. In the 1980s, the organization began to set production targets for its member states. In the 1970s restrictions were placed on oil production this led to a sharp increase in prices of Oil, raising OPEC revenue and wealth in similarly dramatic manner, events which had significant consequences for the global economy. OPEC’s decisions have had a significant impact on the global oil market and in international affairs, for instance, conflicts in member states have lead to interrupted supply of oil. The formation of OPEC signified that the time when nations would have exclusive sovereignty over their natural resources was coming to an end more and more nations were uniting in economic blocs and trade pacts. Since 1965, OPEC’s headquarters have been in Vienna, Austria. OPEC was established in 1960 in Baghdad by the first five members: Saudi Arabia, Venezuela, Iraq, Kuwait, and Iran. Oil accounts for a great percentage of global energy consumption and it is consumed mostly by developed nations. Petroleum is a valuable resource to industries and is crucial to the maintenance of the modern industrialized world for these reasons the world follows keenly the events that take place in the oil market. Out of the above oil-rich countries, only UAE is an OPEC member. Other large producers include Russia, China, Canada, and UAE. The second largest producer was Saudi Arabia, which is an OPEC member state. In 2014, the US was leading globally in oil production, though it is not an OPEC member. In 2015, the 14 OPEC countries controlled 43% of the oil produced and 73% of oil reserves in the world. It is in charge of carrying out research, and its findings form the basis of decision making. The Secretariat is responsible for implementing resolutions and decisions made by the board of directors. The organization has a secretariat which is the executive organ of the OPEC, and its location is in Vienna, it also serves as the headquarters. ![]() ![]() Their aim is to unify and coordinate petroleum policies of its members. It is an organization that unites the governments of 14 developing and oil producing nations, which have banded together to gain more control of the global oil market. OPEC is an acronym which stands for Organization of the Petroleum Exporting Countries.
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