What is 'Organization Of Arab Petroleum Exporting Countries - OAPEC '?

Organization Of Arab Petroleum Exporting Countries (OAPEC) is an inter-governmental organization based in Kuwait. OAPEC fosters cooperation among its 11-member Arab oil-exporting nations.

BREAKING DOWN 'Organization Of Arab Petroleum Exporting Countries - OAPEC '

OAPEC was established in 1968 by Kuwait, Libya and Saudi Arabia. Its other members include Algeria, Bahrain, Egypt, Iraq, Qatar, Syria, Tunisia and the United Arab Emirates. Although they have several members in common, OAPEC is a separate and distinct entity from OPEC (the Organization of the Petroleum Exporting Countries), the 12-nation cartel that plays a pivotal role in determining global petroleum prices.  OAPEC sponsors joint ventures for its member countries to promote the effective use of resources and the economic integration  Arab countries.  

The History of OAPEC

Kuwait, Libya and Saudi Arabia signed an agreement in Beirut on January 9, 1968, establishing OAPEC, and agreeing that the organization would be located in the State of Kuwait. By 1982, the number of members had increased to 11. In 1986, Tunisia submitted a request for withdrawal and it was accepted by the Ministerial Council.

The Structure of OAPEC

OAPEC's structure is composed of the Ministerial Council, General Secretariat, and a Judicial Tribunal. The Ministerial Council is managed by a Council of Ministers, which is responsible for general policy, activities, and governance.  The Council grants membership to applying countries and approves invitations to meetings that are extended to petroleum exporting countries. The Council also adopts resolutions and advises on issues, approves the draft annual budgets of the General Secretariat and the Judicial Tribunal, validates the end-of-year accounts and appoints the Secretary General and Assistant Secretaries.

The Executive Bureau supervises the organization in conjunction with the Ministerial Council. The Executive Bureau prepares the Council’s agenda, amends the regulations applicable to the staff of the General Secretariat, reviews the organization's budget and comments on Council issues that are related to the Articles of Agreement. The Executive Bureau has one representative from each member country. 

The General Secretariat manages the organization’s activities according to the objectives outlined in the stated in the original OAPEC agreement and the directives of the Ministerial Council.  The Secretary General heads the Secretariat and is the organization's official spokesman and legal representative.

The Judicial Tribunal was established by a special Protocol signed on May 9, 1978, in Kuwait.  The Protocol was added to the organization’s Agreement and became effective on April 20, 1980.  The first Judges of the Tribunal were elected on May 6, 1981. The protocol mandates that there must be an uneven number of judges of Arab citizenship - a minimum of seven and a maximum of eleven.

The Influence of OAPEC

According to Gulf News, although momentum is not at the pace it was 30 years ago, OAPEC has had a substantial positive influence on the Arab oil and gas industry since its inception. Arab energy and oil consumption has increased 15-fold and 10-fold, respectively, and oil reserves have increased to 710 billion barrels in 2016 from less than half that number in 1980. In addition, gas reserves grew from 15 to 53 trillion cubic meters, and Arab petrochemicals production is now almost 150 million tons a year.

  1. Organization Of Petroleum Exporting ...

    The Organization Of Petroleum Exporting Countries is an organization ...
  2. Arab Monetary Fund

    The Arab Monetary Fund was founded by the Arab League to stabilize ...
  3. Council Of Insurance Agents & Brokers

    Council Of Insurance Agents & Brokers is a global organization ...
  4. Kuwait Investment Authority

    The Kuwait Investment Authority (KIA) is a government-owned corporation ...
  5. Group of 77

    The Group of 77 is the largest intergovernmental organization ...
  6. Thrift Institutions Advisory Council

    The Thrift Institutions Advisory Council advises the Federal ...
Related Articles
  1. Investing

    Meet OPEC, Manager Of Oil Wealth

    This organization's decisions can influence oil prices, but there is a limit to its power.
  2. Investing

    Tribune Media: An Activist Investment Analysis (TRCO)

    Learn more about the breakup of Tribune Company, once a powerful newspaper and broadcasting giant, and the role of activist investor Cliff Robbins.
  3. Investing

    US-Saudi Relations: A Complex Scenario

    The relationship between the United States and Saudi Arabia is a long, complex story with numerous twists and turns.
  4. Investing

    5 Most Oil-Dependent Economies in the World

    While gas prices below $2 a gallon have benefited American businesses and consumers, countries around the world are feeling the burn of the historically low prices, largely because they don't ...
  5. Financial Advisor

    Can Saudi Arabia End its Oil Dependence?

    Will Saudi Arabia stay the course of diversifying its economy even if oil prices recover?
  6. Investing

    Oil Price Analysis: The Impact Of Supply & Demand

    When all the factors that could affect the price of oil are considered, the most influential remain supply and demand.
  7. Investing

    Tribune Media to Pay Special Dividend of $5.77

    Now this is a fine way to start the new year: Tribune Media (NYSE: TRCO), which holds a big portfolio of TV and digital assets including the WGN channel and Screener entertainment information ...
  8. Investing

    OPEC vs the U.S.: Who Controls Oil Prices?

    In the last 100 years, pricing power for oil has swung between the United States and OPEC. What does the future hold?
  9. Investing

    Oil Falls Despite Geopolitical Risks

    Oil ETFs are set to open lower following G-7 moves to stabilize the region.
  10. Financial Advisor

    Why Saudi Arabia Just Issued $10 Billion in Bonds

    Saudi Arabia has issued a $10 billion bond to global banks. The decision is part of a broader effort by the nation to liberalize its economy.
  1. Why do supply shocks occur and who do they negatively affect the most?

    Take a deeper look at the nature of supply shocks, an economic phenomenon that dramatically changes the equilibrium level ... Read Answer >>
  2. What country is the world's largest oil producer?

    The Kingdom of Saudi Arabia is often cited as the world's largest oil producer. The country produces 13.24% of the oil consumed ... Read Answer >>
  3. Which countries run the largest budget deficits?

    Discover the countries with the largest budget deficits and what it means. Deficits are influenced by the economy and also ... Read Answer >>
  4. Why did oil prices drop so much in 2014?

    Learn the roles that decreased global demand, new supply sources in North America, and actions taken by Saudi Arabia played ... Read Answer >>
  5. What economic indicators do oil and gas investors need to watch?

    Leading indicators for oil and gas investments are centered on the levels of production, consumer demand and inventory levels ... Read Answer >>
  6. What indicators are used in exchange rate forecasting?

    Learn what economic indicators are most widely used to forecast a country’s exchange rate and how various foreign exchange ... Read Answer >>
Trading Center