ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC)

ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES (OPEC): Opec was established in Baghdad, Iraq in 1960, following the meeting of five leading oil-producing countries summoned by Iraq. The five countries are Iraq, Kuwait, Saudi- Arabia, Venezuela, and Quatar etc.

NOTE: The headquarters of OPEC is in Vienna where ordinary meetings of the organization take place.

AIMS/OBJECTIVES OF OPEC

1. To co-ordinate, unify and secure a common petroleum policy among member states.
2. To fight for the interest of member states either collectively or individually.
3. To help secure a high stability in oil prices in the international market.
4. To control production level of member states.
5. To ensure an efficient and uninterrupted supply of petroleum to consuming nations.

MAIN ORGANS OF OPEC

1. The conference 
2. The Board of Governors.
3. The secretariat. 
4. Special Economic commission.
5. OPEC special fund.

ACHIEVEMENTS OF OPEC

1. Has helped in stabilizing the prices of oil.
2. Succeeded in regulating the production of oil among member states.
3. Succeeded in raising the price of oil.
4. Succeeded in ensuring that a uniform oil royalty is paid to oil producing countries.

PROBLEMS/WEAKNESSES OF OPEC.

1. Inability of the organization to effectively regulate oil prices since its inception.
2. Ideological differences among OPEC member states.
3. Disagreement among member states on price to be charged per barrel of oil.
4. The problem of granting production quota.
5. Frequent international crisis, which often leads to fluctuation in oil prices.
6. Violation of OPEC rules and regulations among member states.