Who is OPEC?
OPEC — or Organisation of the Petroleum Exporting Countries — was founded in Baghdad in 1960 by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela. It now has 12 members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Combined they have 72 per cent of the world’s reserves, according to BP. OPEC defines its mission as being to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilisation of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry”.
OPEC — or Organisation of the Petroleum Exporting Countries — was founded in Baghdad in 1960 by Iraq, Iran, Kuwait, Saudi Arabia and Venezuela. It now has 12 members: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. Combined they have 72 per cent of the world’s reserves, according to BP. OPEC defines its mission as being to “coordinate and unify the petroleum policies of its Member Countries and ensure the stabilisation of oil markets in order to secure an efficient, economic and regular supply of petroleum to consumers, a steady income to producers and a fair return on capital for those investing in the petroleum industry”.
The 12 countries that comprise OPEC are trying to crush the shale oil producers of the US, whose rise they underestimated. Last week Saudi Arabia’s oil minister told fellow OPEC members they must combat the US shale oil boom, arguing against cutting crude output. That argument carried the day. Production levels were maintained, which is expected to depress prices and undermine the profitability of North American producers.
Oil is down by about 30 per cent since June, although West Texas Intermediate — the world’s benchmark oil grade — did bounce back 5 per cent overnight to $US69.31 a barrel. Some think the price could fall to as low as $US30 a barrel. The International Energy Agency estimates most drilling in the Bakken formation — the shale producers that OPEC seeks to drive out of business — makes money when oil is above $US42 a barrel.
Saudi Arabia has more “proved oil reserves” than any other country — about 16 per cent of all black gold, according to the US Department of Energy.
That’s 266 billion barrels, the authoritative Oil & Gas Journal has estimated. Sixty-eight per cent of the oil it produced in 2013 went to Asia. According to the US Department of Energy, Venezuela has the second-largest reserve of oil, at 211 billion barrels. Others reckon it has the largest, putting its holding at nearly 300 billion barrels. It is sending a greater proportion of its oil to China and India and less to the US. Canada is third, according to both the US Government and the Oil & Gas Journal, followed by Iran, Iraq and Kuwait. The US is 12th on the list. Canada is the largest exporter of oil to the US. Saudi Arabia is second. Venezuela is third.
Oil is down by about 30 per cent since June, although West Texas Intermediate — the world’s benchmark oil grade — did bounce back 5 per cent overnight to $US69.31 a barrel. Some think the price could fall to as low as $US30 a barrel. The International Energy Agency estimates most drilling in the Bakken formation — the shale producers that OPEC seeks to drive out of business — makes money when oil is above $US42 a barrel.
Saudi Arabia has more “proved oil reserves” than any other country — about 16 per cent of all black gold, according to the US Department of Energy.
That’s 266 billion barrels, the authoritative Oil & Gas Journal has estimated. Sixty-eight per cent of the oil it produced in 2013 went to Asia. According to the US Department of Energy, Venezuela has the second-largest reserve of oil, at 211 billion barrels. Others reckon it has the largest, putting its holding at nearly 300 billion barrels. It is sending a greater proportion of its oil to China and India and less to the US. Canada is third, according to both the US Government and the Oil & Gas Journal, followed by Iran, Iraq and Kuwait. The US is 12th on the list. Canada is the largest exporter of oil to the US. Saudi Arabia is second. Venezuela is third.
