Arene and Kitwood (1979) note that crude oil is capable of flowing up the well pipe either under the pressure existing in the reservoir, or with mechanical assistance from a pump or applied pressure. Since Drake, in Pennsylvania, United States of America (USA), drilled crude oil, the petroleum industry has steadily grown and a large number of petroleum deposits have been discovered and drilled in various parts of the world.
According to EIA (2005), scientists and engineers explore a chosen area by studying rock samples from the earth. Measurements are taken and, if the site seems promising, drilling begins. Above the hole, a structure called a ‘derrick’ is built to house the tools and pipes going into the well. When finished, the drilled well will bring a steady flow of oil to the surface.
The world’s top five crude oil-producing countries are Saudi Arabia, Russia, United States, Iran and China. Over one-fourth of the crude oil produced in the United States is produced offshore in the Gulf of Mexico. The top crude oil-producing states are Texas, Alaska, California, Louisiana and New Mexico (NRC, 2003).
The amount of crude oil produced in the United States has been getting smaller each year. On the other hand, the use of products made from crude oil has been growing, making it necessary to bring more oil from other petroleum producing countries. Thus, about 58% of the crude oil and petroleum products used in the United States come from other countries.
According to the OPEC (2011), the Organization of the Petroleum Exporting Countries (OPEC) was founded in Baghdad, Iraq, with the signing of an agreement in September 1960 by five countries, namely Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. They were to become the Founder Members of the Organization.
Qatar (1961), Socialist People’s Libyan Arab Jamahiriya (1962), the United Arab Emirates (1967), Algeria (1969), Nigeria (1971), Ecuador (1973) and Angola (2007) later joined these countries.
From December 1992 until October 2007, Ecuador suspended its membership. Gabon terminated its membership in 1995. Indonesia suspended its membership effective January 2009. Thus, currently, the Organization has a total of 12 Member Countries: Islamic Republic of Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Socialist People’s Libyan Arab Jamahiriya, the United Arab Emirates, Algeria, Nigeria, Ecuador and Angola.
The OPEC Statute distinguishes between the Founder Members and Full Members – those countries whose applications for membership have been accepted by the Conference. It stipulates that “any country with a substantial net export of crude petroleum which has fundamentally similar interests to those of Member Countries, may become a Full Member of the Organization, if accepted by a majority of three-fourths of Full Members, including the concurring votes of all Founder Members.” The Statute further provides for Associate Members who are those countries that do not qualify for full membership, but are nevertheless admitted under such special conditions as may be prescribed by the Conference.
Contact Us to ask a question, provide feedback, or report a problem.
