OPEC's oil and gas policy This oil cartel composed of oil producing countries has always attracted the attention of the world from the day it was born to this day. Although OPEC's oil production accounts for a smaller proportion of the world's total production than in the 1970s, the total proven oil and gas reserves of OPEC member states rank first in the world, and its strong oil production and supply capabilities, especially its implementation of China's oil development strategy and oil policies still play a decisive role in the stability and development of the world oil market. At the same time, in the process of adjusting and implementing its oil policy, OPEC coordinates actions and consolidates unity, and is gradually maturing and playing a greater role in the international oil field.
OPEC’s oil policy mainly focuses on production control and oil price control.
OPEC maximizes its own interests by controlling the organization's joint output and allocating production quotas to various countries. Since 1982, OPEC has adopted a quota system to achieve production control. The quota system allocates production quotas among all members to coordinate reductions in oil production.
OPEC has adopted different oil price policies at different stages.
Effective Date Meeting Location Change (10,000 barrels) Daily Production Cap (10,000 barrels) February 1998 Riyadh - 27.30* April 1998 Riyadh - 1.35525.95 July 1998 Amsterdam/Vienna - 1.25524.691999 The Hague/Vienna in April 2000 -1.71622.97 Vienna in April 2000 +1.71624.69 Vienna in July 2000 +0.70825.40 Vienna in October 2000 +0.80026.20 Vienna in November 2000 Vienna +0.50026.70 in November 2001 Vienna in February 2001 -1.50025.202001 April 2001 Vienna - 1.00024.20 September 2001 Conference Call - 1.00023.20 January 2002 Cairo - 1.50021.70 2003 January Vienna + 1.30023.00 February 2003 Vienna + 1.50024.50 June 2003 Vienna + 0.90025.40 2003 November Vienna - 0.90024.50 April 2004 Algiers - 1.00023.50 July 2004 Beirut + 2.00025.50 August 2004 Beirut + 0.50026.00 November 2004 Vienna + 1.00027.00 March 2005 Isfahan + 0.50027 .50July 2005 Vienna +0.50028.00
A list of historical changes in the oil production policy of the Organization of the Petroleum Exporting Countries (OPEC) * OPEC 10 country production benchmark, the basis for Riyadh's production reduction.
In the first 10 years of its establishment, in response to the declining international oil prices, OPEC implemented a policy of freezing oil prices in order to safeguard the oil rights and interests of its member countries. It increased production in a controlled manner, realized oilfield expenses, and Reduce crude oil sales subsidies and other means to strive to obtain more oil revenue. From 1961 to September 1970, the price of crude oil remained stable at $18 per barrel.
In the 1970s, OPEC implemented a policy of significantly increasing oil prices. By implementing strategies of raising prices, raising taxes and canceling sales rebates, adopting "shareholding system" and nationalization methods, and using "petroleum weapons" to implement embargoes and production cuts, we have regained the sovereignty of oil resources from Western oil companies. and the right to price oil, obtained a huge amount of "petrodollars", and accounted for more than half of the sales share in the international oil market. The official price of Arab Light Oil soared from US$1.8 per barrel before September 1970 to US$33.33 per barrel in the fourth quarter of 1980, and the spot price in the international market rose to US$38.63 per barrel. During this period, two world-wide "oil crises" broke out in 1973 and 1979-1980.
In the 1980s, in response to the slow or even declining growth in world oil consumption and the rise in non-OPEC oil production, OPEC first implemented a policy of limiting production and protecting prices in order to prevent the decline of oil prices, and then adopted policies such as expanding market share. , in order to ensure oil revenue and maintain market share. OPEC suffered serious losses during this period. One of the important reasons was the negative impact of OPEC's policy of excessively raising oil prices in the previous period. Since the 1990s, especially in the past two years, OPEC has adjusted and alternately implemented the policy of "limiting production and protecting prices" or "increasing production and lowering prices". The former is to limit or reduce production, reduce market supply, and push oil prices back up when oil prices have been falling for a long time; the latter is to stabilize the market and increase oil prices by increasing production and expanding market volume to suppress the surge in oil prices. revenue and maintain market share. In 2000, OPEC established the "automatic oil price balancing mechanism" and clearly stated a new policy goal, which is to curb oil price fluctuations and strive to maintain crude oil prices in the international market at a level that is beneficial to both oil-producing and consuming countries.
OPEC’s oil policy has a significant impact on the supply and demand balance of the world oil market and international oil prices.