What is the history of OPEC?
The foundation of the Organization of Petroleum Exporting Countries (OPEC) was announced in 1960, in response to a period of over-production of oil in the late 1950s that had caused prices to drop drastically. OPEC initially included the five major oil-producing countries of that era: Iran, Kuwait, Saudi Arabia, Venezuela and Iraq. The objective of OPEC, as stated by the member countries, is “to co-ordinate and unify petroleum polices among member countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.” Given that oil is a non-renewable resource, there were concerns by 1960 that without careful regulation, oil supplies would be drained too fast. Oil-producing nations were also worried that over-production and competition amongst themselves had driven down world oil prices too far. As a result, their most valuable resource wa
