OPEC countries - world price dictators

Today, the issues of oil production and redistribution are the determining factors in the formation of world prices for products and articles of use, in establishing world quotations of exchange rates, and even in the rates of growth or decline of the economy of entire regions. And the main role in these processes is played by the OPEC countries.

History and reasons for the formation of OPEC

The Organization of the Petroleum Exporting Countries, better known in the Russian-speaking segment as the Organization of the Petroleum Exporting Countries (OPEC), dates back to the 1960s. Then 5 countries decided to create a structure that would regulate production volumes and the cost of a barrel in the international market of petroleum products. Such an agreement was signed by five states, which became Venezuela, Iraq, Saudi Arabia, Iran and Kuwait. Later, several more countries joined them, and until the beginning of the 1990s they numbered 13 members.

In the last decade of the 20th century, OPEC countries left Ecuador (1992) and Gabon (1994), however, the former regained its membership in 2007. Also, for internal reasons, Indonesia chose to terminate its membership in the organization in 2009. Today this organization includes Venezuela, Iraq, Saudi Arabia (the leader in oil reserves), Iran, Kuwait, Algeria, Angola, Ecuador, Qatar, Libya, United Arab Emirates and Nigeria.

The countries that are part of OPEC have basically two objectives: setting a convenient oil price range for them and redistributing quotas for its export. But at the same time, these states do not hesitate to use their leading position to achieve political goals. A vivid example of these actions was the imposition of an embargo against the United States in 1973 because of the active support of the latter by Israel in the Arab-Israeli conflicts. Some analysts tend to believe that most of the economic crises of the twentieth century were provoked by this particular organization.

OPEC countries regulate the extraction of "black gold", based on their own economic situation. Such actions are completely justified, because For most states, oil production and exports are the main formative line of the country's budget revenues .

Power and weakness

All the countries that are members of OPEC face certain problems. Experts distinguish their four main categories: a severe social gradation of the population, technological backwardness, a poorly developed national system of training and unreasonable use of super profits.

On the standard of living of the population, the OPEC countries are conventionally divided into two groups: the super rich and the poor. At the same time, in countries with a high standard of living, there is a shortage of people, while in the poor - the number of people exceeds reasonable limits. In this regard, the first receive significant foreign investment, while the latter fall into dependence on foreign donors. This division inevitably gives rise to certain disagreements in the formulation of a development strategy.

Focusing mainly on oil production, many OPEC members lose sight of the need for technological development of their own base. Only Saudi Arabia and the UAE stand alone in this case. These countries were able to reorient national science in time to increase the level of technological base. The rest of the states rely on the assistance of foreign companies that cooperate on the basis of concession contracts.

Smoothly emerging from the previous problem, there is a lack of highly qualified personnel that would effectively implement the latest developments and optimize the process of extracting oil products. Such specialists are attracted mainly from abroad, which often meets misunderstanding among the local population.

However, despite these three problems, there is another controversial point - the excess profits from the sale of oil and its products. Euphoria from them lasted literally the whole second half of the twentieth century. Money was spent unreasonably, and instead of investing them in the development of other sources of state budget revenue, they were heading to completely unpromising projects. At this time, the situation has changed: in poor countries, funds are invested in economic and social programs (albeit not always efficiently), in the rich - for the development of other sources of income.

The Organization of the Petroleum Exporting Countries (OPEC) is today a powerful means of manipulating both economic and political processes. However, the internal problems of the member states do not allow it to develop effectively by itself. Such contradictions in strength and weakness will cause the loss of the leading position in the world of the oil industry, if not eliminated.