Oil Saga - The OPEC Oligopoly

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OPEC (Organization of Petroleum Exporting Countries) is a permanent, inter-governmental organization, established at the Baghdad Conference held in Iraq, 10-14 September 1960, presently working with 13 nations. Its objective is to coordinate and unify petroleum policies among Member Countries, in order to secure a steady income to the producing countries, an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the petroleum industry.
Venezuela was the first country to move towards the establishment of OPEC by approaching Iran, Iraq, Kuwait and Saudi Arabia in 1949, suggesting that they exchange views and explore avenues for regular and closer communications between them. In September 1960, at the initiative of the Venezuelan Energy & Mines Ninister, Juan Pablo Pérez Alfonzo, and the Saudi Arabian Energy & Mines Minister, Abdullah al-Tariki, the governments of Iraq, Iran, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss the reduction in price of crude oil produced by their respective countries. OPEC was founded in Baghdad, triggered by a 1960 law instituted by American President, Dwight Eisenhower, that forced quotas on Venezuelan oil imports in favor of the Canadian and Mexican oil industries. Eisenhower cited national security, land access to energy supplies at times of war. Venezuela's President, Romulo Betancourt, reacted seeking an alliance with oil producing Arab nations as a preemptive strategy to protect the continuous autonomy and profitability of Venezuela's natural resource, oil.

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