The Organization of the Petroleum Exporting Countries (OPEC) marks its 65th anniversary—an institution created to change the rules of the game in the global energy market.
Founded on September 14, 1960, in Baghdad, this alliance—conceived by Venezuelan Juan Pablo Pérez Alfonzo, known as the “Father of OPEC”—has consolidated itself as a key player with the ability to directly influence global oil prices and supply.
OPEC began its journey with five founding members: Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela. Over the decades, its influence expanded to include countries from Africa, Asia, and South America. While its initial headquarters were in Geneva, the organization permanently established itself in Vienna in 1965, from where it continues to coordinate the policies of its member countries.
It is worth highlighting that OPEC’s main objective has always been to coordinate production and oil policies to ensure fair and stable prices. In 1968, it adopted a declaration reaffirming the right of every nation to exercise sovereignty over its natural resources—a principle that marked a new era in international energy relations.
The Central Bank of Oil
The power of OPEC is undeniable. Its members control 81% of the world’s proven oil reserves and 43% of global production. With a 34.9% share of crude exports, the organization acts de facto as the “central bank” of the oil market, adjusting production to influence prices—a strategy that has generated both benefits and controversy.
In 2016, OPEC expanded its power with the creation of OPEC+, an alliance that includes 10 additional key producing countries, among them Russia. This coalition has strengthened its capacity to influence the market, coordinating production cuts to maintain price stability in favor of its partners.
Although OPEC has demonstrated dominance for more than six decades, energy experts and analysts argue that the organization must evolve. They contend that its current strategy, centered on production cuts, is unsustainable in the long term.
The challenge for OPEC in the coming years will be to modernize, moving away from political considerations and becoming a more agile organization aligned with the dynamics of the free market. The question many are asking is whether this “central bank of oil” will be able to adapt to a new energy era or whether it will remain anchored in the policies of the past.
