Table of Contents
OPEC
The Organisation of the Petroleum Exporting Countries Headquartered since 1965 in Vienna, Austria.
OIL POWER OF OPEC
- OPEC member countries accounted for an estimated 43% of global oil production and 73% of the “proven” world’s oil reserves.
- Two-thirds of OPEC’s oil production and reserves are in its six Middle Eastern (west Asian) countries that surround the oil-rich Persian Gulf.
QATAR TO LEAVE OPEC FROM JANUARY 2019
- Qatar has announced its withdrawal from Organization of Petroleum Exporting Countries (OPEC) from January 2019 and focus more on the production of natural gas.
- It makes Qatar first Gulf country to leave OPEC bloc of oil-producing countries led by Saudi Arabia.
MAIN POINTS
Qatar is the world’s largest exporter of liquified natural gas (LPG) and 17th largest producer of crude oil (around 600,000 barrels per day). It also only holds around 2% of the world’s global oil reserves. The withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.
QATAR’S REASONS
Being part of OPEC its oil production was steady with limited prospects for increases. Since 2013, amount of oil Qatar produced has steadily declined from about 728,000 barrels per day (2013) to about 607,000 barrels per day (2017), or just under 2% of OPEC’s total output.
A BLOW TO SAUDI ARABIA’S DOMINANCE?
But Qatar’s decision could have significance elsewhere. Since the geopolitical tussle that started last year is still far from over, Qatar’s step could also encourage other members of the OPEC to take similar steps and have their own trading norms by giving up the membership.
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