What Does OAPEC Mean?
Let me explain what OAPEC stands for. The Organization of Arab Petroleum Exporting Countries (OAPEC) is an inter-governmental organization based in Kuwait. It fosters cooperation among its 11-member Arab oil-exporting nations.
Understanding OAPEC
You should know that 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 it shares several members with OPEC, OAPEC is a separate and distinct entity from the Organization of the Petroleum Exporting Countries, which is the 13-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 of Arab countries.
The History of OAPEC
Here's the background: 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 consists of the Ministerial Council, General Secretariat, and a Judicial Tribunal. The Ministerial Council is managed by a Council of Ministers, which handles general policy, activities, and governance. This council grants membership to applying countries and approves invitations to meetings extended to petroleum-exporting countries.
The council also adopts resolutions, 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 alongside the Ministerial Council. It prepares the Council’s agenda, amends regulations for the staff of the General Secretariat, reviews the organization's budget, and comments on Council issues related to the Articles of Agreement. Each member country has one representative in the Executive Bureau.
The General Secretariat manages the organization’s activities according to the objectives in the original OAPEC agreement and the directives of the Ministerial Council. The Secretary-General heads the Secretariat and serves as the organization's official spokesman and legal representative.
The Judicial Tribunal was established by a special Protocol signed on May 9, 1978, in Kuwait. This Protocol was added to the organization’s Agreement and became effective on April 20, 1980. The first Judges were elected on May 6, 1981. The protocol requires an uneven number of judges of Arab citizenship, with a minimum of seven and a maximum of eleven.
The Influence of OAPEC
According to reports like those from Gulf News, although the momentum isn't as strong as 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 grown to 710 billion barrels in 2016 from less than half that in 1980.
In addition, gas reserves expanded from 15 to 53 trillion cubic meters, and Arab petrochemicals production now exceeds 150 million tons a year. Keep in mind that reserve data from OAPEC is based on information provided by member nations, and the accuracy of that data can vary.
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