OPEC

Prepared By :
Doaa Mohammed Maayouf
Supervised By :
Dr. Kholod Orhoma
INTRODUCTION
Definition and Purpose

OPEC (Organization of the Petroleum Exporting Countries) coordinates and

unifies petroleum policies among member nations to stabilize oil markets and

ensure fair income for producers.

Established in 1960

Founded on September 14, 1960, in Baghdad by Iran, Iraq, Kuwait, Saudi

Arabia, and Venezuela to enhance control over oil resources.

UNDERSTANDING OPEC: THE
BASICS
What is OPEC? Core Mission Global Influence
OPEC is an intergovernmental OPEC aims to ensure stable oil OPEC significantly influences
organization. It coordinates prices. They secure efficient, global oil prices. Its decisions
petroleum policies of its member economic, and regular impact energy markets
countries. petroleum supply to worldwide.
consumers.
 CURRENT MEMBERS
As of now, OPEC includes 13
member countries:
• Algeria , Angola , Congo ,
Equatorial Guinea , Gabon
• Iran , Iraq , Kuwait , Libya , Nigeria
• Saudi Arabia , United Arab
Emirates , Venezuela
 CURRENT MEMBERS
As of now, OPEC includes 13
member countries:
• Algeria , Angola , Congo ,
Equatorial Guinea , Gabon
• Iran , Iraq , Kuwait , Libya , Nigeria
• Saudi Arabia , United Arab
Emirates , Venezuela
OPEC'S STRUCTURE
Governance

• OPEC is governed by the Conference of member representatives, typically oil ministers.

• Decisions are made by consensus.

Secretary-General

• The Secretary-General manages daily operations and represents OPEC internationally,

serving a three-year term.

Meetings

• OPEC holds biannual meetings to discuss market conditions and set production targets.

• Extraordinary meetings can be convened as needed.

OPEC'S STRUCTURE
OPEC'S IMPACT ON GLOBAL
ENERGY DEMAND
PRICE CONTROL: OPEC'S
INFLUENCE ON OIL PRICES
Supply Decisions
1 Adjusting output to influence market prices

Production Quotas
2
Setting limits for member countries

Market Impact
3
Stabilizing or disrupting global oil markets
OPEC'S PRODUCTION QUOTAS AND
MARKET IMPACT

• OPEC regulates oil supply

through production quotas.
• In 2022, OPEC increased
production by 400,000
barrels/day.
• Oil prices fluctuated due to
OPEC's production strategies.
CHALLENGES CONFRONTING OPEC'S INFLUENCE
 CHALLENGES CONFRONTING
OPEC'S INFLUENCE
DECLININ
G MARKET
SHARE
GEOPOLITICAL TENSIONS AFFECTING OPEC
GEOPOLITIC
Geopolitical conflicts can disrupt oil production and
AL
influence pricing strategies among OPEC members.
TENSIONS
AFFECTING
OPEC SHIFT
TOWARDS
RENEWAB
LE ENERGY

COMPETITIO
N FROM
NON-OPEC
PRODUCERS
 CHALLENGES CONFRONTING
OPEC'S INFLUENCE GEOPOLITIC
AL
TENSIONS
COMPETITION FROM NON-OPEC PRODUCERS AFFECTING
Increasing oil production from non-OPEC countries OPEC
COMPETITIO
N FROM like the U.S. is leading to price wars that challenge
NON-OPEC OPEC's pricing power.
PRODUCERS
DECLINING
MARKET
SHARE

SHIFT
TOWARDS
RENEWABLE
ENERGY
 CHALLENGES CONFRONTING
OPEC'S INFLUENCE
COMPETITIO
N FROM
NON-OPEC
SHIFT TOWARDS RENEWABLE ENERGY PRODUCERS
SHIFT Growing global commitment to renewable energy
TOWARDS sources pressures OPEC to adapt and invest in
RENEWABLE sustainable practices.
ENERGY GEOPOLITIC
AL
TENSIONS
AFFECTING
OPEC

DECLINING
MARKET
SHARE
 CHALLENGES CONFRONTING
OPEC'S INFLUENCE
SHIFT
TOWARDS
RENEWABLE
DECLINING MARKET SHARE ENERGY
OPEC's market share is projected to fall from 40%
DECLINING to around 35% by 2030 due to increased
MARKET competition and demand changes.
SHARE
COMPETITIO
N FROM
NON-OPEC
PRODUCERS

GEOPOLITIC
AL TENSIONS
AFFECTING
OPEC
OPEC’S SWOT ANALYSIS
S

T
 OPEC’S SWOT ANALYSIS

S W O T

Weakness Threats
Strength Opportunities
OPEC faces OPEC must
•OPEC has The organization
declining oil navigate the
significant can invest in
demand as the pressures of
influence over cleaner
world transitions climate change
global oil technologies and
to cleaner energy policies and
production and collaborate with
and electric increased
pricing, allowing it non-OPEC
vehicles, which competition from
to maintain a countries to
threatens its renewable energy
central role in the diversify energy
traditional sectors, which
energy sector resources and
revenue streams. could diminish its
despite challenges enhance
relevance in the
from renewable sustainability
future.
energy sources. efforts.
THE PUMP EFFECT: OPEC AND
CONSUMERS

Gas Prices Transportati Inflation

on
OPEC decisions Oil prices
directly affect Higher oil prices influence overall
gasoline prices. It increase the cost inflation rates. It
affects costs for of transportation. affects the cost of
everyday This impacts living.
consumers. goods and
services.
RECENT OPEC ACTIONS
AND GLOBAL IMPACT

2M 10%
Production Cuts Price Increase
Recent decisions involved Caused a rise in crude oil
reducing oil output. prices globally.

Ş100B
Revenue Boost
Increased revenues for
OPEC member
countries.
OPEC'S HURDLES: CLIMATE CHANGE
AND RENEWABLES
Renewable 1
Energy
Growth in solar, wind, and other sources
reduces oil demand. 2 Climate Policies
Government regulations promote energy
Market Shifts 3 efficiency and lower emissions.

Electric vehicles and alternative fuels

reshape transportation.
THE ROAD AHEAD: OPEC'S
FUTURE
2 Adaptation
Adjusting strategies to meet
Diversificatio changing energy demands.
n 1
Investing in non-oil sectors for Collaboration
economic stability.
Engaging with other nations
3 for market stability.
THANK YOU
REFERENCE
- Alhajji, A. F., & Huettner, F. (2000). OPEC and the world oil market: what do we really know?
- Iea. (2021). "Oil 2021: analysis and forecasts to 2026." International energy agency.
- Opec PAPER BY Emmanuel solomon john , 2018