Definition

The Organization of the Petroleum Exporting Countries (OPEC) is an intergovernmental organisation of 13 oil-producing nations founded in Baghdad in 1960. OPEC coordinates and unifies petroleum policies among its member countries to ensure the stabilisation of oil markets and secure an efficient supply of petroleum to consumers.

UAE Context

The UAE joined OPEC as a founding member in 1967. Through the Abu Dhabi National Oil Company (ADNOC), the UAE holds proven crude oil reserves of approximately 98 billion barrels, making it the seventh-largest reserve holder globally. The country’s production capacity exceeds 4 million barrels per day, though actual output is subject to OPEC+ production agreements.

OPEC+ Framework

Since 2016, OPEC has operated in an expanded format known as OPEC+, which includes additional non-OPEC producers such as Russia, Mexico, and Kazakhstan. The UAE has been an active participant in OPEC+ production cut agreements, though it has at times sought a higher baseline production quota to reflect its expanded capacity. The tension between maximising production revenue and maintaining OPEC+ cohesion represents a recurring strategic challenge.

Vision 2031 Relevance

While the UAE’s Vision 2031 emphasises economic diversification away from oil dependence, hydrocarbon revenue remains critical to funding the national transformation. ADNOC’s strategy of maximising value from existing reserves while investing in energy transition aligns with both the vision’s Forward Economy pillar and the UAE’s OPEC commitments.

Related Terms

• ADNOC — Abu Dhabi National Oil Company
• Murban Crude — UAE benchmark crude oil
• OPEC+ — Expanded production coordination group