VISIT WEBSITE >>>>> http://gg.gg/y83ws?5232950 <<<<<<
After the departure of Qatar in January , its members are reduced to 14 and their names are as follows;. Currently, Ecuador is going through an economic crisis. Ecuador has taken loan from the IMF. Ecuador is experiencing rising inflation, higher unemployment rate and a reduction in aggregate demand in the country.
Even the government does not have the fund to run the general administration of the country. Moreover the Ecuador government can't increase the crude oil production to fulfill its financial needs because its daily crude oil production quota 5. The Ecuadorian government is saying that its economy cannot be saved from sinking if it keeps on producing crude oil as per its quota allotment. Indonesia is planning a number of upgrades and expansions to existing refineries slated to become operational within the next decade.
Because Indonesia struggles with the level of investment needed to offset oil and natural gas production declines and a lack of adequate infrastructure, it hopes to attract investment in both its upstream and downstream sectors from OPEC members.
Indonesia is currently in discussions with several OPEC countries about crude oil supply deals and investments in refinery projects. Add us to your site. Today in Energy. At the meeting the organization requested Indonesia to cut crude oil production by 5 percent roughly 37, bpd.
However, this request goes against Indonesia's efforts to boost its sluggishly performing oil sector. Over the past two decades Indonesia's oil production has been in a state of decline due to ageing oil fields in combination with a lack of investment in both exploration and production.
Recently, the Indonesian government has implemented policies aimed at boosting the nation's oil output, partly in an effort to seek additional state revenue to finance the state budget. Gabon left OPEC in Earlier in our research, this exit seemed permanent, but in April of this year, they formally reapplied for membership. Alongside Ecuador, who left in and rejoined in , a distinct trend is beginning to emerge.
Although Gabon has yet to be readmitted, their application signals a desire for membership, and searching for and understanding this desire has been the purpose of our project all along. With the recent developments mentioned above, this blog will attempt to find a common thread between the shared desire of Indonesia and Gabon to rejoin OPEC.
As both countries have rather small oil reserves compared to those of larger member countries, a basic correlation between the two may be established. That said, these two countries share few common characteristics, which makes a comparison of motivations more interesting. As the government stated their intention of boosting oil production, this explanation is consistent with the narrative of a country attempting to cut their obligations until such a time as they have enough clout to truly participate in the organization.
An alternative story to one of high fees and low clout delves into domestic politics. As oil prices were reaching their all-time highs in , Indonesia found itself unable to sustain the level of oil subsidies they had previously maintained in their efforts to keep domestic prices low.
At the time, Indonesia was the only net importer of oil amongst all OPEC member countries, meaning that lower oil prices would leave the country better off by setting it apart from the hopes of the rest of the organization.
Perhaps one of these changes was to save a bit of money and face by ducking out of OPEC, even if it was intended as a temporary measure. Being the odd one out in an organization of net exporters would have made continued membership a contentious decision.
Gabon also tells a story of a country unhappy with the millions of dollars in OPEC fees. Interestingly, Gabon may have exited OPEC thinking they would be better off going alone, rather than in protest of heavy fees and unequal say. When Ecuador left OPEC in , they attempted to leverage their resources to attract foreign investment.
It is possible that Gabon thought they could sell themselves in this way once free from both fees and production quotas. Two small members of OPEC left. Two small members of OPEC returned. As detailed above, these countries have little in common besides their level of oil exports.
Despite this, they share a very similar narrative when it comes to their respective exits of OPEC. High fees and restrictive quotas left both countries feeling as though they would be better off alone. The question remains — why did Indonesia and Gabon return to an organization they accused of unfair fees and more? Upon the exit, the organization said not a word.
Comments