ORGANIZATION OF THE PETROLEUM EXPORTING COUNTRIES (OPEC)

Dec. 4, 2018

Qatar has announced its decision to leave OPEC w.e.f. January 2019 in order to focus on gas production.

About:

  • OPEC is a permanent intergovernmental organization of 15 oil-exporting developing nations that coordinates and unifies the petroleum policies of its Member Countries.

  • Origin: OPEC was founded in 1960 in Baghdad, Iraq by five countries namely Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

  • Present member countries: 15 (6 in the Middle East (Western Asia), 7 in Africa, and 2 in South America).

  • HQ: Vienna, Austria.

Qatar Quitting OPEC:

  • Qatar has been a member of OPEC since 1961.

  • Qatar has stated that it wants to focus more on gas production, which is its core strength, instead of oil.
    • In September, Qatar announced its plans to boost gas production to 110 million tonnes a year by 2024.

    • Its oil production is around 6,00,000 barrels a day, making it the world’s 17th largest producer of crude. It also only holds around 2% of the world’s global oil reserves.



  • Some analysts saw Qatar’s withdrawal as a “political decision to oppose Saudi Arabia”, which alongside the U.S. and Russia is the biggest producer in OPEC. Qatar is under a boycott by former neighbouring allies, including Saudi Arabia for 18 months.

Source : The Hindu

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