OPEC at 50: Between Power and Impotence

Project Context

In 2010, the Organization of Petroleum Exporting Countries (OPEC) will mark its 50th anniversary. Only few international institutions have received as much public attention as the cartel of oil-producing countries. In fact, over the years, OPEC has become almost synonymous with the age of oil. Yet, the reach and impact of OPEC has remained a much debated topic. While some observers suggest that OPEC is a powerful cartel controlling prices and outputs, others have suggested that the organization – perhaps with the exception of the early 1970s – has remained a toothless tiger, unable to leverage its potential due to the fractiousness of its membership. With resources becoming increasingly scarce in the new millennium, the public debate has shifted again. Many observers now see OPEC as a credible player again, and perhaps even as a blueprint for an association of major gas producers. Yet, the reach and influence of OPEC remains far from clear.

Project Objectives

This project will review the history of OPEC, from its nascent in Bagdad in 1960 to today. The objective of the project is to understand and explain OPEC’s history, as well as to develop an understanding of its role and potential in the 21st century. In particular, the project will analyze to what extent OPEC has been able to effectively function as a cartel in its 50 years of existence, and what level of influence it will yield in the years ahead.