The Genuine role of Organisation of Petroleum Exporting Countries in the Global Oil Market (original) (raw)
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OPEC and its Role in Oil and Energy Market
Pomorski Zbornik, 2002
The prospect for energy consumption in a global level takes into account the fact that the energy sector operates in a globalized environment in such a way that regional or local analysis prove to say the least inadequate. Oil without doubt still has the dominant role as energy material, affecting with its variations the growth level of all countries to greater or lesser degree. The aim of this article is the presentation of energy consumption scenarios and the examination of the role of OPEC in terms of supply. Furthermore within this article, issues of importance in the exploitation of OPEC member-states oil reserves are analyzed, so that conclusions can be made regarding the policy of the organization for the immediate future. This article analyses International Energy Association (World Economic Outlook) energy scenarios, the POLES model, as well as the structure of OPEC member-states regarding production and exploitation of reseves. Key conclusion of this article is that the role of OPEC however impaired, still remains significant in the global energy scene, whereas the wane of its role can be the outcome of either the liberalization of its member-states economies or by the opening of new markets of adequate volume and capacity so as to counterbalance global oil demand.
This study examines the legal, social, economic implications and influence of OPEC in the world and Nigeria in particular and it provides positive suggestions with a view to making OPEC perform better for the mankind. This study dug down the memory lane with positive criticism into the evolution and historical development of the OPEC spanning policies, purpose aims and objectives of OPEC; mission of OPEC; post-world war II situation; OPEC founding; era by era development of OPEC up to 2016. It also critically examined the membership of OPEC cutting across its types of membership; organs and administrative machinery of OPEC consisting of the Conference; the Board of Governors; the Secretariat; and the OPEC Summit. The paper employs library research method making use of publicly available official OPEC publications, documents, policy instruments, key presentations by OPEC departmental experts, internet research and research work that has taken into account available information. Efforts are made to use relevant textbooks, newspaper's articles, and journal's papers.
INTRODUCTION: The Rise and Fall of OPEC in the Twentieth Century (OUP, 2019)
2019
The Organization of the Petroleum Exporting Countries (OPEC) is one of the most recognizable acronyms among international organizations. It is mainly associated with the 'oil shock' of 1973 when prices of petroleum quadrupled and industrialized countries and consumers were forced to face the limits of their development model. This is the first history of OPEC and of its members written by a professional historian. It carries the reader from the formation of the first petrostate in the world, Venezuela in the late 1920s, to the global ascent of petrostates and OPEC during the 1970s, to their crisis in the late-1980s and early- 1990s. Formed in 1960, OPEC was the first international organization of the Global South. It was perceived as acting as the economic 'spearhead' of the Global South and acquired a role that went far beyond the realm of oil politics. Petrostates such as Venezuela, Nigeria, Algeria, Saudi Arabia, Iraq, and Iran were (and continue to be) key regional actors, and their enduring cooperation, defying wide political and cultural differences and even wars, speaks to the centrality of natural resources in the history of the twentieth century, and to the underlying conflict between producers and consumers of these natural resources.
OPEC's Dominance of the Global Oil Market: The Rise of the World's Dependency on Oil
The Middle East Journal, 2004
This article examines the rise of the world's dependency on oil and the Organization of Petroleum Exporting Countries' (OPEC) dominance of the global oil market during the 1970s, OPEC's fall in the 1980s, and its resurgence in the 1990s. It contends that efforts by the Global North's countries to conserve fuel and to develop alternative energy sources have proved a much more arduous task than at first thought. Although there has been some progress in this area, OPEC continues to dominate the world oil market in the twenty-first century, as global demand for and dependence on oil continue to rise. A call is issued for solutions.
Albrecht Daniel Thaer-Institut für Agrar- und Gartenbauwissenschaften eBooks, 2015
This paper analytically addresses the question, to which degree the market power of OPEC is the key reason for the world market price of crude oil to exceed marginal extraction costs. Describing the various determinants of both extraction costs and the oil price constitutes the basis for an in-depth discussion on the relative impact of these variables. We argue that despite OPEC's significant market power, other forces such as steadily increasing global demand, temporary supply constraints, or a growing importance of resource pragmatism and nationalism play a much greater role than OPEC's market power.
The Emperor Has No Clothes: The Limits of OPEC in the Global Oil Market
International Organization, 2014
Scholars have long debated the causal impact of international institutions such as the World Trade Organization or the International Monetary Fund. This study investigates Organization of Petroleum Exporting Countries (OPEC), an organization that purports to have significant influence over the market for the world's most important commodity–petroleum. Using four empirical tests, I find that OPEC has little or no impact on its members' production levels. These findings prompt the question of why so many people, including scholars, believe in OPEC's influence over the world's oil supply. The idea of OPEC as a cartel is a “rational myth” that supports the organization's true principal function, which is to generate political benefits for its members. One benefit it generates is international prestige. I test this idea using data on diplomatic representation and find that OPEC membership is associated with increased international recognition by other states. Overall, these findings help one to better understand international regimes and the process of ideational change in world politics.
The OPEC Evolution and Beyond the 'Global Oil Policies'
International Journal of Analytical Research and Review , 2023
OPEC has been playing a crucial role in regulating oil policies globally since its establishment in the 1960s. Its major policy objective has remained to safeguard the interests of oil-producing and consuming countries through stable supply and regulation of oil prices. It rose to international prominence during the 1970s, as its Member countries took control of their domestic petroleum industries and began to play a greater role in world oil markets. This oil cartel's policy influenced the global political economy in 1973 led oil crisis. Its economic clout became politically significant to protect its ideological interests. However, the OPEC policy-makers had not kept the organization's policy objectives limited to economic interest but focused also on the socialenvironmental causes of low-middle developing countries. The institutional mechanism of 'The OPEC Fund for International Development' has been consistently looking at causes of social development. After the 1992 UN Earth Summit in Rio, the outlook of the world changed toward energy in more sustainable and environmentally friendly. While increasing energy demand, the factor of clean-safe energy became a crucial part of consuming countries' energy policies. So, the profile of the 'energy mix' changed, thereby influencing the OPEC policy objectives as well. OPEC policymakers have also incorporated the requirement of environmentally sustainable energy into their frameworks. This research paper will analyze the evolution of the OPEC, major policy objectives, and the shift in policy since the 1990s towards environmentally and socially reliable.
Need to Re-jig Legs Framework of the Organization of the Petroleum Exporting Countries (OPEC)
Adeleke University Journal of Business and Social Sciences (AUJBSS), 2019
This study examines the legal, social, economic implications and influence of OPEC in the world and Nigeria in particular and it provides positive suggestions on how to make OPEC perform better as an organization. This study critically interrogates the historical evolution of the OPEC in such areas as its policies, purpose, aims and objectives, including also its organogram from inception to date. It also critically examines its membership, organs and administrative machinery of OPEC.
Energy Economics, 2015
We develop a conceptual model that captures OPEC pricing behavior, and apply it to explain the large gap observed between domestic fuel prices in OPEC countries and prices in the rest of the world. We model OPEC as a cartel of nations, not firms, and assume politician use two instruments: production quotas and domestic fuel consumption subsidies. The cartelof-nations model suggests that introduction of alternatives to petroleum products may lead OPEC to reduce exports and increase domestic fuel consumption. The empirical analysis suggests that when OPEC sets production quotas, it places similar weights on consumers and producers surplus. But when OPEC countries set domestic fuel subsidies, on average 6% more weight is given to consumer surplus with some of the OPEC countries pursuing very aggressive domestic cheap fuel policies.