In News
- OPEC+ is going to cut crude oil output by 100k barrels per day from October 2022.
About OPEC+
- Created in 2016
- Backdrop: OPEC countries decided to ally with other oil-producing countries outside the group to cut down the global output of oil.
- Members: OPEC+ refers to a group of 23 oil-producing countries that includes:
- 13 members of OPEC: Saudi Arabia, the UAE, Iran, Iraq, Kuwait, Algeria, Angola, Equatorial Guinea, Gabon, Libya, Nigeria, the Republic of the Congo, and Venezuela
- 10 other oil-producing countries: Russia, Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, South Sudan and Sudan
- Facts:
- Saudi Arabia is the largest oil producer among OPEC members.
- Russia, which produces more oil than even Saudi Arabia, plays a crucial role, along with OPEC, in influencing global crude oil prices.
- It controls more than 50% of the world’s crude supplies
Image Courtesy: Wiki
Significance of this grouping
- The global energy market was largely dominated by western multinational companies, called the ‘Seven Sisters’.
- Anglo-Iranian Oil Company (now BP),
- Royal Dutch Shell (now Shell),
- Standard Oil Company of California (later Chevron),
- Gulf Oil (now merged into Chevron),
- Texaco (now merged into Chevron),
- Standard Oil Company of New Jersey-Esso (now part of ExxonMobil) and
- Standard Oil Company of New York-Socony (now part of ExxonMobil).
- The new grouping was seen as a response by oil-producing countries to protect their interests amid the rise of the U.S. shale industry.
Source: TH
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