Why is oil such a valuable resource in the world?

1. Why is oil such a valuable resource in the world?

3. Introduction • OPEC (Organization of Petroleum Exporting Countries) is a permanent intergovernmental organization which is a cartel of 12 countries made up of, Angola, Ecuador, Iran, Iraq, Algeria Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela. • It coordinates and unifies the petroleum policies of its Member Countries in order to secure fair and stable prices for petroleum producers. • It seeks to ensure the stabilization of oil prices in international oil markets.

4. The main role of OPEC is regular supplying of petroleum to consuming nations. • OPEC has maintained its headquarters in Vienna and hosts regular meetings among the oil ministers of its Member Countries. • OPEC allows oil-producing countries to guarantee their income by coordinating policies and prices among them.

5. Two-thirds of the oil reserves in the world belong to OPEC members and the members are responsible for half of the world's oil exports. • OPEC represents a considerable political and economical force.

6. History • OPEC created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. • These 5 countries are referred to as the ‘Founder Members of OPEC. • OPEC has since expanded to include seven more countries (Algeria, Angola, Indonesia, Libya, Nigeria, Qatar, and United Arab Emirates) making a total membership of 12. • OPEC was registered with the United Nations Secretariat on 6 November 1962 (UN Resolution No. 6363).

7. Member countries Founder Members • Iran 1960 Middle East • Iraq 1960 Middle East • Kuwait 1960 Middle East • Saudi Arabia 1960 Middle East • Venezuela 1960 South America

8. Full Members • Algeria 1969 Africa • Angola 2007 Africa • Ecuador 1973 South America • SP Libyan AJ 1962 Africa • Nigeria 1971 Africa • Qatar 1961 Middle East • United Arab Emirates 1967 Middle East

9. Reason for existence • Through production quotas of petroleum OPEC control supply, in order to keep the prices high. • Resources will continue to Provide income to those nations in the future. • OPEC reacts to developments to ensure a balance between supply and demand

10. Terms for Membership • Any country with a substantial net export of crude petroleum • Similar interests to those of Member Countries • If accepted by a majority of three fourths of Full Members • Including the concurring votes of all Founder Members

11. The Statute further distinguishes between three categories of Membership • Founder Member • Full Member • Associate Member • countries which do not qualify for full membership, but which are nevertheless admitted under such special conditions as may be prescribed by the Conference

12. Influence on world economy • OPEC provides the required amount of oil to all parts of the world to help their economies • OPEC also called on industrialized and developing countries to come together to solve the problems facing poor countries and to look for ways of establishing a better economic system by allowing increased trade and exchange of knowledge.

13. Social Responsibility • OPEC is concerned about the environment and wants to ensure that it is clean and healthy for future generations. • OPEC Member Countries have ratified the Kyoto Protocol to the United Nations Framework Convention on Climate Change • OPEC considers that the development of technology is important for limiting or reducing greenhouse gas emissions