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-
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