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What is OPEC?

Last updated on: June 16, 2004 08:14 IST
OPEC facts

What is OPEC?
Stockmarkets crashed the world over, share prices slumped, prices of airline tickets shot up. All because of global crude oil prices, which touched a record $41 per barrel. Take the rediff biz quiz and find out what OPEC
is all about.

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1. What is OPEC?
a) Oil and Petroleum Exporting Companies
b) Oil and Petroleum Exporting Countries
c) Organization of Petroleum Exporting Countries

2. How many members does OPEC have?
a) 5
b) 11
c) 10

Wrong! Try again.
Wrong!
The correct answer is 11.
OPEC consists of eleven oil-producing and exporting countries, from Africa, Asia, the Middle East, and Latin America. The current members are Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Algeria (1969), Indonesia (1962), Libya (1962), Nigeria (1971), Qatar (1961) and the United Arab Emirates (1967). Of these the first five are the founding members of OPEC, who came together to form the organisation in 1960. OPEC's eleven members collectively supply about 41 per cent of the world's oil output, and possess more than three-quarters of the world's total proven crude oil reserves. Membership is open to any country which is a substantial net exporter of oil and which shares the ideals of the organisation.
Correct!
OPEC consists of eleven oil-producing and exporting countries, from Africa, Asia, the Middle East, and Latin America. The current members are Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Algeria (1969), Indonesia (1962), Libya (1962), Nigeria (1971), Qatar (1961) and the United Arab Emirates (1967). Of these the first five are the founding members of OPEC, who came together to form the organisation in 1960. OPEC's eleven members collectively supply about 41 per cent of the world's oil output, and possess more than three-quarters of the world's total proven crude oil reserves. Membership is open to any country which is a substantial net exporter of oil and which shares the ideals of the organisation.

3. Which country produces the most oil?
a) Saudi Arabia
b) Iraq
c) United States

Wrong! Try again.
Wrong!
The correct answer is Saudi Arabia.
At the end of 2001 world proven crude oil reserves stood at 1,074,850 million barrels, of which 845,421 million barrels, or 78.7 per cent, was in OPEC Member Countries. According to OPEC's annual statistical bulletin 2002, the countries that produced the most oil include Saudi Arabia (7.889 million barrels per day), Russia (6.730), United States (5.801), Iran (3.572) and China (3.297). According to the OPEC Annual Statistical Bulletin 2001, the world's largest proven crude oil reserves are in Saudi Arabia (262,697 million barrels), Iraq (112,500), Iran (99,080), United Arab Emirates (97,800) and Kuwait (96,500). 
Correct!
At the end of 2001 world proven crude oil reserves stood at 1,074,850 million barrels, of which 845,421 million barrels, or 78.7 per cent, was in OPEC Member Countries. According to OPEC's annual statistical bulletin 2002, the countries that produced the most oil include Saudi Arabia (7.889 million barrels per day), Russia (6.730), United States (5.801), Iran (3.572) and China (3.297). According to the OPEC Annual Statistical Bulletin 2001, the world's largest proven crude oil reserves are in Saudi Arabia (262,697 million barrels), Iraq (112,500), Iran (99,080), United Arab Emirates (97,800) and Kuwait (96,500).

4. Who were oildom's Seven Sisters?
a) Seven largest oil producing countries
b) Seven largest oil consuming countries
c) Seven biggest oil companies

Wrong! Try again.
Wrong!
The correct answer is Seven biggest oil companies.
Following the break up of Standard Oil, the oil refining company founded by John D Rockefeller and his partners, in 1911, several new companies were created, three of which, along with four other major oil companies, were once referred to as the Seven Sisters. The original Seven Sisters were Exxon (or Esso, Humble, Standard of New Jersey), Shell, BP (British Petroleum, originally Burmah Oil + Anglo-Iranian), Gulf, Texaco, Mobil (Standard of New York), and Chevron (Standard of California). Since Gulf Oil no longer exists (acquired by Chevron in 1984), Amoco (Standard of Indiana) was often added to the list of six; but in 1998, Amoco was acquired by BP to form BP Amoco. Exxon acquired Mobil; and Chevron and Texaco merged in 2001-2002. BP Amoco, ExxonMobil, and ChevronTexaco, combine within them no fewer than 14 of the 35 Standard Oil Trust companies that were divested from Standard in 1911.
Correct!
Following the break up of Standard Oil, the oil refining company founded by John D Rockefeller and his partners, in 1911, several new companies were created, three of which, along with four other major oil companies, were once referred to as the Seven Sisters. The original Seven Sisters were Exxon (or Esso, Humble, Standard of New Jersey), Shell, BP (British Petroleum, originally Burmah Oil + Anglo-Iranian), Gulf, Texaco, Mobil (Standard of New York), and Chevron (Standard of California). Since Gulf Oil no longer exists (acquired by Chevron in 1984), Amoco (Standard of Indiana) was often added to the list of six; but in 1998, Amoco was acquired by BP to form BP Amoco. Exxon acquired Mobil; and Chevron and Texaco merged in 2001-2002. BP Amoco, ExxonMobil, and ChevronTexaco, combine within them no fewer than 14 of the 35 Standard Oil Trust companies that were divested from Standard in 1911.

5. What is OPEC's aim?
a) To deliver steady supplies of oil to consumers
b) To control the oil market
c) To fix global oil price

Wrong! Try again.
Wrong!
The correct answer is to deliver steady supplies of oil to consumers.
OPEC Statute, which dates from the earliest days of the organisation: "OPEC's principal aims are the coordination and unification of the petroleum policies of Member Countries and the determination of the best means for safeguarding their interest, individually and collectively. The Organization shall devise ways and means of ensuring the stabilization of prices in international oil markets, with a view of eliminating harmful and unnecessary fluctuations." OPEC does not control the oil market as it produces about 41 per cent of the world's crude oil and 15 per cent of its natural gas.
Correct!
The OPEC Statute, which dates from the earliest days of the organisation: "OPEC's principal aims are the coordination and unification of the petroleum policies of Member Countries and the determination of the best means for safeguarding their interest, individually and collectively. The Organization shall devise ways and means of ensuring the stabilization of prices in international oil markets, with a view of eliminating harmful and unnecessary fluctuations." OPEC does not control the oil market as it produces about 41 per cent of the world's crude oil and 15 per cent of its natural gas.

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Compiled by: Rediff Business Desk

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