Project 9ja Mag The Revolution. 1st Edition | Page 52

Project9ja Furthermore, for countries that had opted out of the cartel, it has not been favorable, as evidently shown by Ecuador who withdrew from the body in December 1992, because it was unwilling to yield to the production quota allowed under it at this time, only for them to rejoin in October 2007. Simi- lar concerns prompted Gabon to suspend membership in January 1995, only to rejoin in July 2016. Indonesia was not left out of the sabbatical, when in 2008, they left the cartel, only to rejoin in Janu- ary 2016. Hence, is it not wise to go by the saying “if you cannot beat them, you join them”. For any economy that depends on oil to survive, it needs a body that would ensure regularity, uniformity, and provide information and data for Image showing OPEC member-states and other relevant statistics of each state continued relevance in the indus- try. ergy Information Administration (USEIA), as of 2000, oil and gas Lastly, OPEC has been able exports accounted for more than 98% of export earnings and to provide a platform described as about 83% of Federal Government revenue, as well as generating ‘spare capacity’ which according more than 14% of the country’s GDP. It also provides 95% of for- to the USEIA, the Statistical arm eign exchange earnings, and about 65% of government budgetary of the US Department of Energy, revenues. OPEC has been described by many economists as a defines it as the volume produc- cartel that cooperates to reduce market competition, coordinate tion that can be brought on within and unify the petroleum policies of its member countries and en- 30 days and sustained for at least sure a steady income to producers. The phrase ‘steady income to 90days. OPEC spare capacity pro- producers’ ought to catch attention. This shows that an economy vides an indicator of the World like Nigeria, that relies on oil, and produces 2,200,000 barrels ( oil market’s ability to respond to 350000 m3 ) per day in Mid-2001 and 1,999,885 barrels in 2016 potential crises that reduces oil according to the USEIA, requires an organization that would fa- supplies. In 2014, disruptions that cilitate exchange, without which, there is no income. occurred and are ongoing in Nige- page 52