Cartel to Player: OPEC Dynamics in the Global Oil Market

Abstract

The OPEC, since its establishment in 1960 as a cartel and regime, has been largely controlling the global energy supply and price regulations, and thus, playing a pivotal role in the global geopolitics of energy security. However, the journey of this inter-governmental organisation till date, as a predominant energy cartel, from cartel dominance and regional geopolitics to global competition and climate change challenges, has not been an easy one. Although OPEC has been going through ups and downs in the global energy market, the requirement of petroleum resources by the global community for economic growth and the developmental process cannot be ignored. Therefore, the role of OPEC is likely to be prominent at least till the mid-2030s as indicated by various energy reports. This research paper is intended to test the hypothesis that in spite of internal dissent and discontent, price war and rise of OPEC+, exploration of shale energy, focus for energy transition, OPEC will have an unmatchable share in the global energy basket and remain a dominant player in the global energy market and geopolitics, at least for the near future. The paper also focuses on how the Russia-Ukraine war has united OPEC and non-OPEC suppliers further to control the global energy market Which benefits both.