Organization of Petroleum Exporting Countries

ACKNOWLEDGEMENT

I would like to thank my supervisor for supporting me throughout my project and giving his valuable suggestions. Finally thanks to all my friends and family for their utmost support and inspiration.

DECLARATION

I, (Your name), would like to declare that all contents included in this dissertation stand for my individual work without any aid, & this dissertation has not been submitted for any examination at academic as well as professional level previously. It also represents my own views & not essentially the ones associated with university.

Signed __________________ Date _________________

TABLE OF CONTENTS

ACKNOWLEDGEMENTii

DECLARATIONiii

CHAPTER 1: INTRODUCTION1

Background of the Research Study1

Aims and Objectives of the Research Study2

Problem Statement3

Significance of the Research Study3

Rationale of the Research Study4

Research Questions5

CHAPTER 2: LITERATURE REVIEW6

Theoretical Framework6

Characteristics of OPEC6

Past Incidents8

History of OPEC9

Changes in Economic and Political Factors11

Cartels and their Emergence13

Long-Term Stability16

Changes in Oil Prices17

Recent Developments18

Demand Security Needed19

Growth Observed20

OPEC and United Nations21

International Oil Companies and National Oil Companies22

REFERENCES25

CHAPTER 1: INTRODUCTION

Background of the Research Study

The research study is based on the performance of the Organization for Petroleum Exporting Countries. The performance of the Organization of Petroleum Exporting Countries has been discussed by different authors in different ways. However, the role of Organization of Petroleum Exporting Countries (OPEC) has been critically evaluated as to whether it has been playing its part in the market for oil fairly or not. The OPEC has been regulating the world oil markets for long time however, the fluctuations in the oil prices have been observed to a greater extent in the international market. The role of OPEC has been taken into account in many studies which shows the importance of the organization in the international market. However, in all these studies the role of OPEC has been critically evaluated in terms of its decisions and the regulations implemented on the member countries for exporting. The regulation set the United Nations is also of great importance for the OPEC as they mainly facilitates the organization by making it to follow the appropriate policies that are beneficial for the world oil markets.

Different goals have been set by the organization however the main goal of the organization is the identification of the best possible ways for protecting the interest of the organization on the collective and individual basis. Other goals that are pursued by the organization are the stabilization in the prices of the oil in the international market and rectifying the problems that makes the prices of oil in the international market unstable. The organization also ensures that the member countries are earning stable income in the respective years. Similarly, the organization also takes care of the goals and objectives of the member countries while providing adequate levels of petroleum to the member countries at the same time. The organization also ensures that the member countries those are engaged in the investment activities in the OPEC are also getting reasonable revenues from them. Due to the attainment of all these goals, the organization has been very effective in setting the prices and providing petroleum oil to ...