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Title: Organization of the Arab Petroleum Exporting Countries: objectives and potential

Journal Article · · Annu. Rev. Energy; (United States)

Established in 1968 by Kuwait, Saudi Arabia, and Libya, the Organization of the Arab Petroleum Exporting Countries (OAPEC) was preoccupied in its early years with efforts to increase its membership. Headquartered in Kuwait, OAPEC now also includes Algeria, Egypt, Syria, Qatar, Bahrain, Iraq, and the United Arab Emirates; only the Arab oil-exporting states of Tunisia and Oman remain outside the body. The timing of OAPEC's creation heavily influenced its direction and goals. In the wake of the June 1967 Middle East conflict, the Arab oil states individually reacted in diverse degrees through production slowdowns, stoppages, and ad hoc boycotts singularly marked by lack of coordination and success. The trends then underway toward expanding participation of producer governments and rising pressure for higher prices had not gathered the sweeping momentum evident by the opening of the 1970s. The initial impulse in fashioning the body was two-pronged: (a) to reduce the disarray in Arab policies through a formalized or institutionalized level of coordination, and (b) to provide a means of channeling ''crisis aid'' to Egypt, Jordan, and Syria. The prime goals of OAPEC have centered upon (1) promotion of coordination of petroleum policies with special emphasis on development; (2) promotion of exchange of information and coordination in training programs and research; and (3) actual establishment and operation of joint ventures in the field of hydrocarbons on a commercial scale, entailing formation of independent companies in which shares are held by member states. The importance of OAPEC to the U.S. and other members of OECD lies in the increasing level and direction of trade and economic interdependence between the two groups. 12 footnotes, 7 tables.

Research Organization:
Univ. of Colorado, Boulder
OSTI ID:
7088099
Journal Information:
Annu. Rev. Energy; (United States), Vol. 2
Country of Publication:
United States
Language:
English