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OPEC Presentation
OPEC Presentation
of the Petroleum
Exporting
Countries (OPEC)
Presented by : -
Alaa Sharaby Mohamed
Alyaa Ragab Mohamed
Esraa Nashat Elbanna
Habiba Motawea
Table of contents
01 Introduction
02 Objectives
03 The importance
After 1980, with the start of the Iraq-Iran war, oil prices
dropped
Reasons for the emergence of OPEC
The global conglomerate (the global cartel or the world oil
government).
Mexico and Iran both nationalized their oil.
The sense of oil states of injustice.
The national and nationalist uprisings also had many objectives.
The emergence of liberal leaders and thinkers focused on the
importance of political and economic independence.
The transformation in the international economic and political
sense.
Multinationals dominated the international oil market.
02
Objectives
of OPEC
Objectives
• Coordinate and standardize oil policies among member states in order
to ensure fair and stable prices for oil producers.
• Keep the price of oil exploited by the international oil cartel
(multinational companies) beyond its borders at a high level.
• The Organization shall ensure the equality of its members.
• Unify the efforts of producing countries to extract a larger share of
profits from the exploitation of their own wealth.
• Regulate and strengthen the position of oil exporting countries in their
relationship with concessionary companies.
But the ability of OPEC member states, when bargaining to ensure the
success of such negotiations initially faced several problems.
GOALS
1. Coordination 3. Preserving oil
between members protecting
5.
wealth through
states in petroleum member states
production
policies and seek to technology
achieve individual
and social interests
Cooperation with the rest .6.4 Drop marketing
2. Finds ways and
of the world with a view expenses and rises the
means to achieve price tax rate on income and
to establishing anew
stability in global oil find way to compensate
world economic order
economy and prevent
based on fair principles for the bad effects on real
fluctuations in oil prices income of the barrel as a
and that achieving
by managing result of global monetary
prosperity for all
production levels and developments the trend of
peoples of the world
adjust supply to meet inflation rates
demand
IMPORTANT
The importance of organization through economic
indicators that have enabled organization to
occupy important position in the oil market.
6. Value of oil exports: The value of oil exports in 2012 for OPEC countries was
estimated at US $ 1,688,229 billion.
7.Demand for oil is 8,657 million barrels per day, or 9.74% of world production
estimated at 88,868.5 million barrels per day.
2- Increasing the share of countries in profits by raising the income tax rate.
3 - Compelling companies to keep their accounts inside the country, taking in kind share
of production and selling them in the free market directly.
OPEC and global
production
OPEC's share of global crude oil production was more than 40%, or 40.63
million barrels, according to 2010 and 66.6% for the rest of the non-OPEC
production of the same year, equivalent to 44873.66 thousand barrels per
day. At the level of OPEC total estimated at 39.4%, the Arab countries
represented in 7 countries take 25.06% or 18570 thousand barrels per day,
and the remaining 14.33% for non-Arab countries with a value of 10613.5 thousand
barrels per day.
OPEC and the World Reserve
We note that OPEC reserves remained stable during the period from 2000 to
2011 and that it ranks first for the rest of the world, ie, 80.44% for the world
reserves. OPEC usually adjusts the reserve estimates for the last two years in
each report, especially for the OPEC member countries, so there may be no
difference, in its statistical tables.
However, with reference to its reserve estimates from its inception to the present
day, there is a significant difference. Based on this, the estimates for the Arab
countries combined increased to reach 712.4 billion barrels per day in 2011.
OPEC and the World Reserve
According to current estimates, 80.4% (1,241.82 billion barrels) of the world's proven oil reserves
are located in OPEC Member Countries, with the bulk of OPEC oil reserves in the Middle East,
amounting to 67.1% of the OPEC total.
OPEC and the October 1973 war
October 1973 saw the political role of OPEC and oil as a powerful lobbying tool in
international politics when Arab states decided to impose a ban on oil exports to pro-
Israel countries, including the United States and the Netherlands, and reduced their
production to support Egypt and Syria in their war against Israel.
On Saturday, October 6, 1973, Arab countries declared war on Israel. OPEC announced
its historic decision to raise the prices announced without negotiations with companies,
and on the same day met Arab oil ministers in Kuwait (OAPEC), and decided to approve
a program of progressive reduction of production, provided that the reduction of less
than 50% of the total production of September 1973 and be repeated every month so
that the United Nations to implement its resolution 242, which calls for Israel's
withdrawal from the occupied Arab territories in June 1967.