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132-591: On 9 January 1968, three of the then–most conservative Arab oil states – Kuwait , Libya , and Saudi Arabia – agreed at a conference in Beirut , Lebanon to found the Organization of Arab Petroleum Exporting Countries, aiming to separate the production and sale of oil from politics in the wake of the halfhearted 1967 oil embargo in response to the Six-Day War . Such use of the economic weapon of oil embargo in

264-650: A British protectorate . This gave Britain exclusive access and trade with Kuwait, while denying Ottoman and Germany provinces to the north a port on the Persian Gulf. The Sheikhdom of Kuwait remained a British protectorate until 1961. After the Anglo-Ottoman Convention of 1913 , Kuwait was established as an autonomous kaza , or district, of the Ottoman Empire and a de facto protectorate of Great Britain . During World War I ,

396-415: A maritime border with Iran , across the Persian Gulf. Most of the country's population reside in the urban agglomeration of Kuwait City , the capital and largest city. As of 2024 , Kuwait has a population of 4.82 million, of which 1.53 million are Kuwaiti citizens while the remaining 3.29 million are foreign nationals from over 100 countries. Kuwait has the third largest foreign-born population in

528-479: A day (mbpd) to the approximately 2 mbpd of cuts announced. In June 2003, the International Energy Agency (IEA) and OPEC held their first joint workshop on energy issues. They have continued to meet regularly since then, "to collectively better understand trends, analysis and viewpoints and advance market transparency and predictability." Widespread insurgency and sabotage occurred during

660-633: A doubling of its debt, reaching 100% of the Gross Domestic Product. Faced with increasing economic hardship (which ultimately contributed to the collapse of the Soviet bloc in 1989), the " free-riding " oil exporters that had previously failed to comply with OPEC agreements finally began to limit production to shore up prices, based on painstakingly negotiated national quotas that sought to balance oil-related and economic criteria since 1986. (Within their sovereign-controlled territories,

792-920: A dramatic end to the post-WWII economic boom . The 1973–1974 oil embargo had lasting effects on the United States and other industrialized nations, which established the International Energy Agency in response, as well as national emergency stockpiles designed to withstand months of future supply disruptions. Oil conservation efforts included lower speed limits on highways, smaller and more energy-efficient cars and appliances, year-round daylight saving time , reduced usage of heating and air-conditioning , better building insulation , increased support of mass transit , and greater emphasis on coal , natural gas , ethanol , nuclear and other alternative energy sources. These long-term efforts became effective enough that US oil consumption rose only 11 percent during 1980–2014, while real GDP rose 150 percent. But in

924-566: A hub for the civilization from the end of the 3rd to the middle of the 1st millennium BC. After the Dilmun civilization, Failaka was inhabited by the Kassites of Mesopotamia , and was formally under the control of the Kassite dynasty of Babylon . Studies indicate traces of human settlement can be found on Failaka dating back to as early as the end of the 3rd millennium BC, and extending until

1056-467: A joint venture of Ballast Nedam . The Al Sabah strongly advocated Islamism throughout the 1980s. At that time, the most serious threat to the continuity of Al Sabah came from home-grown democrats, who were protesting the 1976 suspension of the parliament . The Al Sabah were attracted to Islamists preaching the virtues of a hierarchical order that included loyalty to the Kuwaiti monarchy. In 1981,

1188-665: A member of OPEC since the organization's founding, but Iraqi production was not a part of OPEC quota agreements from 1998 to 2016, due to the country's daunting political difficulties. Lower demand triggered by the 1997–1998 Asian financial crisis saw the price of oil fall back to 1986 levels. After oil slumped to around US$ 10/bbl, joint diplomacy achieved a gradual slowing of oil production by OPEC, Mexico and Norway. After prices slumped again in Nov. 2001, OPEC, Norway, Mexico, Russia, Oman and Angola agreed to cut production on 1 January 2002 for 6 months. OPEC contributed 1.5 million barrels

1320-619: A much more activist organization, contrary to the original intention. The 1973 oil crisis was a turning point for the organization. In October of that year, the forces of Egypt and Syria attempted to overwhelm the state of Israel in an offensive later known as the Yom Kippur War . On 16 October, ten days after the war's start, Kuwait hosted separate meetings of both OAPEC and the Persian Gulf members of OPEC , including Iran. OAPEC resolved to cut oil production by 5% monthly "until

1452-762: A number of bilateral and multilateral channels." The Fund became an official international development agency in May 1980 and was renamed the OPEC Fund for International Development , with Permanent Observer status at the United Nations. In 2020, the institution ceased using the abbreviation OFID. On 21 December 1975, Saudi Arabia's Ahmed Zaki Yamani , Iran's Jamshid Amuzegar , and the other OPEC oil ministers were taken hostage at their semi-annual conference in Vienna, Austria . The attack, which killed three non-ministers,

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1584-593: A principal commercial center for the transit of goods between Baghdad , India, Persia, Muscat , and the Arabian Peninsula . By the late-1700s, Kuwait had established itself as a trading route from the Persian Gulf to Aleppo . During the Persian siege of Basra in 1775–79 , Iraqi merchants took refuge in Kuwait and were partly instrumental in the expansion of Kuwait's boat-building and trading activities. As

1716-806: A record US$ 147/bbl in July and then plunged back to US$ 32/bbl in December, during the worst global recession since World War II . OPEC's annual oil export revenue also set a new record in 2008, estimated around US$ 1 trillion, and reached similar annual rates in 2011–2014 (along with extensive petrodollar recycling activity) before plunging again. By the time of the 2011 Libyan Civil War and Arab Spring , OPEC started issuing explicit statements to counter "excessive speculation" in oil futures markets , blaming financial speculators for increasing volatility beyond market fundamentals. In May 2008, Indonesia announced that it would leave OPEC when its membership expired at

1848-510: A record volume of worldwide oil inventories, and a collapse in oil prices that continued into early 2016. In spite of global oversupply, on 27 November 2014 in Vienna, Saudi oil minister Ali Al-Naimi blocked appeals from poorer OPEC members for production cuts to support prices. Naimi argued that the oil market should be left to rebalance itself competitively at lower price levels, strategically rebuilding OPEC's long-term market share by ending

1980-485: A result of the worldwide economic depression. At its height, Kuwait's pearl industry had led the world's luxury market, regularly sending out between 750 and 800 ships to meet the European elite's desire for pearls. During the economic depression, luxuries like pearls were in little demand. The Japanese invention of cultured pearls also contributed to the collapse of Kuwait's pearl industry. Freya Stark wrote about

2112-614: A result, Kuwait's maritime commerce boomed, as the Indian trade routes with Baghdad, Aleppo, Smyrna and Constantinople were diverted to Kuwait during this time. The East India Company was diverted to Kuwait in 1792. The East India Company secured the sea routes between Kuwait, India and the east coasts of Africa. After the Persians withdrew from Basra in 1779, Kuwait continued to attract trade away from Basra. The flight of many of Basra's leading merchants to Kuwait continued to play

2244-518: A significant role in Basra's commercial stagnation well into the 1850s. The instability in Basra helped foster economic prosperity in Kuwait. In the late 18th century, Kuwait was a haven for Basra merchants fleeing Ottoman persecution. Kuwait was the center of boat building in the Persian Gulf, its ships renowned throughout the Indian Ocean . Its sailors developed a positive reputation in

2376-487: A slowdown in economic growth. At the same time, US oil production nearly doubled from 2008 levels and approached the world-leading " swing producer " volumes of Saudi Arabia and Russia, due to the substantial long-term improvement and spread of shale " fracking " technology in response to the years of record oil prices. These developments led in turn to a plunge in US oil import requirements (moving closer to energy independence ),

2508-522: A source of hope. OPEC's international aid activities date from well before the 1973–1974 oil price surge. For example, the Kuwait Fund for Arab Economic Development has operated since 1961. In the years after 1973, as an example of so-called " checkbook diplomacy ", certain Arab nations have been among the world's largest providers of foreign aid, and OPEC added to its goals the selling of oil for

2640-613: A stance that reflects how the kingdom has adapted to the evolving economic needs within OPEC and the broader international community. Emphasizing the need for a balanced and fair global energy transition , he highlighted the importance of diversifying energy sources and noted significant investments in natural gas , petrochemicals , and renewables . These efforts support economic development in emerging countries and align with global climate objectives . Additionally, he addressed shifting energy security concerns, stating, "Energy security in

2772-428: A substantial degree of worldwide competition. Moreover, because of an economic " prisoner's dilemma " that encourages each member nation individually to discount its price and exceed its production quota, widespread cheating within OPEC often erodes its ability to influence global oil prices through collective action . Political scientist Jeff Colgan has challenged that OPEC is a cartel, pointing to endemic cheating in

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2904-780: A textbook example of a cartel (a group whose members cooperate to reduce market competition ) but one whose consultations may be protected by the doctrine of state immunity under international law. Current OPEC members are Algeria, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, the Republic of the Congo, Saudi Arabia, the United Arab Emirates and Venezuela. Meanwhile, Angola, Ecuador, Indonesia, and Qatar are former OPEC members. A larger group called OPEC+ , consisting of OPEC members plus other oil-producing countries, formed in late 2016 to exert more control on

3036-472: A textbook example of a cartel that cooperates to reduce market competition, as in this definition from OECD 's Glossary of Industrial Organisation Economics and Competition Law : International commodity agreements covering products such as coffee, sugar, tin and more recently oil (OPEC: Organisation of Petroleum Exporting Countries) are examples of international cartels which have publicly entailed agreements between different national governments. While OPEC

3168-631: Is a cartel enabling the co-operation of leading oil-producing and oil-dependent countries in order to collectively influence the global oil market and maximize profit . It was founded on 14 September 1960, in Baghdad by the first five members which are Iran , Iraq , Kuwait , Saudi Arabia , and Venezuela . The organization, which currently comprises 12 member countries, accounted for an estimated 30 percent of global oil production . A 2022 report further details that OPEC member countries were responsible for approximately 38 percent of it. Additionally, it

3300-645: Is at times cited as a textbook example of a cartel, various authoritative and academic sources provide a broader perspective on the organization's role. For instance, the US Energy Information Administration 's glossary explains OPEC as: An intergovernmental organization whose stated objective is to 'coordinate and unify the petroleum policies of member countries'. The Oxford Dictionary of Energy Science (2017) defines OPEC as: An organization set up in 1960 to coordinate petroleum policies among its member countries, initially with

3432-445: Is called the "golden era of Kuwait". In 1946, crude oil was exported for the first time. In 1950, a major public-work programme began to enable Kuwaiti citizens to enjoy a luxurious standard of living. By 1952, the country became the largest oil exporter in the Persian Gulf region. This massive growth attracted many foreign workers, especially from Palestine, Iran, India, and Egypt – with the latter being particularly political within

3564-471: Is estimated that 79.5 percent of the world's proven oil reserves are located within OPEC nations, with the Middle East alone accounting for 67.2 percent of OPEC's total reserves. In a series of steps in the 1960s and 1970s, OPEC restructured the global system of oil production in favor of oil-producing states and away from an oligopoly of dominant Anglo-American oil firms (the " Seven Sisters "). In

3696-407: Is really the first illustration and at the same time the most concrete and most spectacular illustration of the importance of raw material prices for our countries, the vital need for the producing countries to operate the levers of price control, and lastly, the great possibilities of a union of raw material producing countries. This action should be viewed by the developing countries as an example and

3828-598: Is the Saudi concern that overly expensive oil or unreliable supply will drive industrial nations to conserve energy and develop alternative fuels, curtailing the worldwide demand for oil and eventually leaving unneeded barrels in the ground. To this point, Saudi Oil Minister Yamani famously remarked in 1973: "The Stone Age didn't end because we ran out of stones." To elucidate Saudi Arabia's contemporary approach, in 2024, Saudi Energy Minister Prince Abdulaziz bin Salman articulated

3960-528: Is the supreme authority of the organisation, and consists of delegations normally headed by the oil ministers of member countries. The chief executive of the organisation is the OPEC secretary general . The conference ordinarily meets at the Vienna headquarters, at least twice a year and in additional extraordinary sessions when necessary. It generally operates on the principles of unanimity and "one member, one vote", with each country paying an equal membership fee into

4092-588: The 1985 Kuwait City bombings , and the hijacking of several Kuwait Airways planes. Kuwait's economy and scientific research sector significantly suffered due to the pro-Iran terror attacks. Simultaneously, Kuwait experienced a major economic crisis after the Souk Al-Manakh stock market crash and decrease in oil price . After the Iran–Iraq War ended, Kuwait declined an Iraqi request to forgive its US$ 65 billion debt. An economic rivalry between

Organization of Arab Petroleum Exporting Countries - Misplaced Pages Continue

4224-603: The Arab League 's first Arab Petroleum Congress convened in Cairo, Egypt, where the influential journalist Wanda Jablonski introduced Saudi Arabia's Abdullah Tariki to Venezuela's observer Juan Pablo Pérez Alfonzo , representing the two then-largest oil-producing nations outside the United States and the Soviet Union. Both oil ministers were angered by the price cuts, and the two led their fellow delegates to establish

4356-556: The Battle of Chains between the Sassanid Empire and Rashidun Caliphate was fought in Kuwait. As a result of Rashidun victory in 636 AD, the bay of Kuwait was home to the city of Kazma (also known as "Kadhima" or "Kāzimah") in the early Islamic era. In the early to mid 1700s, Kuwait City was a small fishing village . Administratively, it was a sheikhdom, ruled by local sheikhs from Bani Khalid clan. Sometime in

4488-574: The British Empire imposed a trade blockade against Kuwait because Kuwait's ruler at the time, Salim Al-Mubarak Al-Sabah , supported the Ottoman Empire . The British economic blockade heavily damaged Kuwait's economy. In 1919, Sheikh Salim Al-Mubarak Al-Sabah intended to build a commercial city in the south of Kuwait. This caused a diplomatic crisis with Najd, but Britain intervened, discouraging Sheikh Salim. In 1920, an attempt by

4620-725: The Foreign Sovereign Immunities Act , and are therefore beyond the legal reach of US competition law governing "commercial" acts. Despite popular sentiment against OPEC, legislative proposals to limit the organisation's sovereign immunity, such as the NOPEC Act, have so far been unsuccessful. OPEC often has difficulty agreeing on policy decisions because its member countries differ widely in their oil export capacities, production costs, reserves, geological features, population, economic development, budgetary situations, and political circumstances. Indeed, over

4752-603: The Ikhwan to build a stronghold in southern Kuwait led to the Battle of Hamdh . The Battle of Hamdh involved 2,000 Ikhwan fighters against 100 Kuwaiti cavalrymen and 200 Kuwaiti infantrymen . The battle lasted for six days and resulted in heavy but unknown casualties on both sides resulting in the victory of the Ikhwan forces and leading to the battle of Jahra around the Kuwait Red Fort. The Battle of Jahra happened as

4884-686: The Mediterranean Sea region, called the Tripoli Agreement . The agreement, signed on 2 April 1971, raised oil prices and increased producing countries' profit shares. During 1961–1975, the five founding nations were joined by Qatar (1961), Indonesia (1962–2008, rejoined 2014–2016), Libya (1962), United Arab Emirates (originally just the Emirate of Abu Dhabi , 1967), Algeria (1969), Nigeria (1971), Ecuador (1973–1992, 2007–2020), and Gabon (1975–1994, rejoined 2016). By

5016-869: The Neo-Babylonian Empire period, Nabonidus had a governor in Failaka and Nebuchadnezzar II had a palace and temple in Falaika. Failaka also contained temples dedicated to the worship of Shamash , the Mesopotamian sun god in the Babylonian pantheon. Following the Fall of Babylon , the bay of Kuwait came under the control of the Achaemenid Empire (c. 550‒330 BC) as the bay was repopulated after seven centuries of abandonment. Failaka

5148-596: The Parthian Empire and the kingdom of Characene was established around Teredon in present-day Kuwait. Characene was centered in the region encompassing southern Mesopotamia, Characene coins were discovered in Akkaz, Umm an Namil, and Failaka. A busy Parthian commercial station was situated in Kuwait. In 224 AD, Kuwait became part of the Sassanid Empire . At the time of the Sassanid Empire, Kuwait

5280-662: The Six-Day War (1967), Yom Kippur War (1973), a hostage siege directed by Palestinian militants (1975), the Iranian Revolution (1979), Iran–Iraq War (1980–1988), Iraqi occupation of Kuwait (1990–1991), September 11 attacks (2001), American occupation of Iraq (2003–2011), Conflict in the Niger Delta (2004–present), Arab Spring (2010–2012), Libyan Crisis (2011–present), and international Embargo against Iran (2012–2016). Although events such as these can temporarily disrupt oil supplies and elevate prices,

5412-511: The Six-Day War in 1967. However, in 1973, the result was a sharp rise in oil prices and OPEC revenues, from US$ 3/bbl to US$ 12/bbl, and an emergency period of energy rationing , intensified by panic reactions, a declining trend in US oil production, currency devaluations, and a lengthy UK coal-miners dispute. For a time, the UK imposed an emergency three-day workweek . Seven European nations banned non-essential Sunday driving. US gas stations limited

Organization of Arab Petroleum Exporting Countries - Misplaced Pages Continue

5544-503: The hijab in the 1960s and 70s. Although Kuwait formally gained independence in 1961, Iraq initially refused to recognize the country's independence by maintaining that Kuwait is part of Iraq, albeit Iraq later briefly backed down following a show of force by Britain and Arab League support of Kuwait's independence. The short-lived Operation Vantage crisis evolved in July 1961, as the Iraqi government threatened to invade Kuwait and

5676-541: The "State of Kuwait" since 1961. Following the post-glacial flooding of the Persian Gulf basin , debris from the Tigris–Euphrates river formed a substantial delta, creating most of the land in present-day Kuwait and establishing the present coastlines. One of the earliest evidence of human habitation in Kuwait dates back to 8000 BC where Mesolithic tools were found in Burgan . Historically, most of present-day Kuwait

5808-543: The 1932 border of Kuwait. Under the terms of the newly drafted Constitution , Kuwait held its first parliamentary elections in 1963 . Kuwait University was established in 1966. Kuwait's theatre industry became well known throughout the region. After the 1967 Six Day War , Kuwait along with other Arabic speaking countries voted the three no's of the Khartoum Resolution : no peace with Israel, no recognition of Israel, and no negotiations with Israel. From

5940-459: The 1959 congress. Government representatives from Iran, Iraq, Kuwait, Saudi Arabia and Venezuela met in Baghdad to discuss ways to increase the price of crude oil produced by their countries, and ways to respond to unilateral actions by the MOCs. Despite strong US opposition: "Together with Arab and non-Arab producers, Saudi Arabia formed the Organization of Petroleum Export Countries (OPEC) to secure

6072-502: The 1970s onward, Kuwait scored highest of all Arab countries on the Human Development Index . The Iraqi poet Ahmed Matar left Iraq in the 1970s to take refuge in the more liberal environment of Kuwait. Kuwait is the 25th most peaceful country in the world, according to the 2024 Global Peace Index . The Kuwait-Iraq 1973 Samita border skirmish evolved on 20 March 1973, when Iraqi army units occupied El-Samitah near

6204-518: The 1970s, restrictions in oil production led to a dramatic rise in oil prices with long-lasting and far-reaching consequences for the global economy. Since the 1980s, OPEC has had a limited impact on world oil-supply and oil-price stability, as there is frequent cheating by members on their commitments to one another, and as member commitments reflect what they would do even in the absence of OPEC. However, since 2020, OPEC countries along with non-OPEC participants had helped in stabilising oil markets after

6336-622: The 1970s, OPEC nations demonstrated convincingly that their oil could be used as both a political and economic weapon against other nations, at least in the short term. The embargo also meant that a section of the Non-Aligned Movement saw power as a source of hope for their developing countries . The Algerian president Houari Boumédiène expressed this hope in a speech at the UN's sixth Special Session, in April 1974: The OPEC action

6468-461: The 1973 oil crisis. In October 1973, the Organisation of Arab Petroleum Exporting Countries (OAPEC, consisting of the Arab majority of OPEC plus Egypt and Syria) declared significant production cuts and an oil embargo against the United States and other industrialized nations that supported Israel in the Yom Kippur War . A previous embargo attempt was largely ineffective in response to

6600-425: The 1980s largely failed to achieve its goals (limits on world oil supply, stabilized prices, and raising of long-term average revenues). He finds that members have cheated on 96% of their commitments. The analysis spans over the period 1982–2009. To the extent that when member states comply with their commitments, it is because the commitments reflect what they would do even if OPEC did not exist. One large reason for

6732-466: The 1980–1988 Iran–Iraq War . But these two Iraqi wars against fellow OPEC founders marked a low point in the cohesion of the organization, and oil prices subsided quickly after the short-term supply disruptions. The September 2001 Al Qaeda attacks on the US and the March 2003 US invasion of Iraq had even milder short-term impacts on oil prices, as Saudi Arabia and other exporters again cooperated to keep

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6864-588: The 2003–2008 height of the American occupation of Iraq , coinciding with rapidly increasing oil demand from China and commodity -hungry investors, recurring violence against the Nigerian oil industry , and dwindling spare capacity as a cushion against potential shortages . This combination of forces prompted a sharp rise in oil prices to levels far higher than those previously targeted by OPEC. Price volatility reached an extreme in 2008, as WTI crude oil surged to

6996-483: The 20th century AD. Many of the artifacts found in Falaika are linked to Mesopotamian civilizations and seem to show that Failaka was gradually drawn toward the civilization based in Antioch . Under Nebuchadnezzar II , the bay of Kuwait was under Babylonian control. Cuneiform documents found in Failaka indicate the presence of Babylonians in the island's population. Babylonian Kings were present in Failaka during

7128-517: The 70s, 80s, and 90s was more dependent on oil. Now, you get what happened last year... It was gas. The future problem on energy security will not be oil. It will be renewables. And the materials, and the mines." On 10 September 2008, with oil prices still near US$ 100/bbl, a production dispute occurred when the Saudis reportedly walked out of a negotiating session where rival members voted to reduce OPEC output. Although Saudi delegates officially endorsed

7260-538: The Arab League's Arab Petroleum Congress (founded in 1959) merged into OAPEC's Arab Energy Conference (founded in 1979), which has continued to meet periodically through at least 2014. OAPEC is regarded as a regional, specialized international organization focusing on organizing cooperation in oil development, collective projects, and regional integration. OAPEC consists of the Council of Ministers that holds

7392-786: The Arabian Peninsula and is known to have created among the leading artists in the region. Kuwaiti popular culture, in the form of theatre, radio, music, and television soap opera, is exported to neighboring Gulf Cooperation Council (GCC) states. Kuwait is a founding member of the GCC and is also a member of the United Nations , the Arab League , and OPEC . The name "Kuwait" is from the Kuwaiti Arabic diminutive form of كوت ( Kut or Kout ), meaning "fortress built near water". The country's official name has been

7524-486: The COVID-19 pandemic resulted in a collapse in oil demand. This has allowed oil markets to remain stable relative to other energy markets that experienced unprecedented volatility. The formation of OPEC marked a turning point toward national sovereignty over natural resources . OPEC decisions have come to play a prominent role in the global oil-market and in international relations . Economists have characterized OPEC as

7656-525: The Great named Failaka Ikaros because it resembled the Aegean Island of that name in size and shape. Elements of Greek mythology were mixed with the local cults. "Ikaros" was also the name of a prominent city situated in Failaka. Large Hellenistic forts and Greek temples were uncovered. Archaeological remains of Greek colonization were also discovered in Akkaz, Umm an Namil, and Subiya. At

7788-641: The Israeli forces are completely evacuated from all the Arab territories occupied in the June 1967 war". The embargo would last for some five months before it was lifted in March 1974 after negotiations at the Washington Oil Summit. The embargo's after-effects would linger through the rest of the decade and beyond. For the oil-exporting countries, the embargo was the first experience of leveraging their collective production for political gains. A number of

7920-422: The Kuwaiti border, which evoked an international crisis. On 6 February 1974, Palestinian militants occupied the Japanese embassy in Kuwait , taking the ambassador and ten others hostage. The militants' motive was to support the Japanese Red Army members and Palestinian militants who were holding hostages on a Singaporean ferry in what is known as the Laju incident . Ultimately, the hostages were released, and

8052-446: The Kuwaiti government gerrymandered electoral districts in favour of the Islamists. Islamists were the government's main allies, hence Islamists were able to dominate state agencies, such as the government ministries . During the Iran–Iraq War , Kuwait ardently supported Iraq. As a result, there were various pro-Iran terror attacks across Kuwait, including the 1983 bombings, the attempted assassination of Emir Jaber in May 1985,

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8184-407: The Kuwait–Najd War in 1919–20, Ibn Saud imposed a trade blockade against Kuwait from the years 1923 until 1937. The goal of the Saudi economic and military attacks on Kuwait was to annex as much of Kuwait's territory as possible. At the Uqair conference in 1922, the boundaries of Kuwait and Najd were set; as a result of British interference, Kuwait had no representative at the Uqair conference. After

8316-427: The Maadi Pact or Gentlemen's Agreement , calling for an "Oil Consultation Commission" of exporting countries, to which MOCs should present price-change plans. Jablonski reported a marked hostility toward the West and a growing outcry against " absentee landlordism " of the MOCs, which at the time controlled all oil operations within the exporting countries and wielded enormous political influence. In August 1960, ignoring

8448-400: The North Sea, and the Gulf of Mexico. By 1986, daily worldwide demand for oil dropped by 5 million barrels, non-OPEC production rose by an even-larger amount, and OPEC's market share sank from approximately 50 percent in 1979 to less than 30 percent in 1985. Illustrating the volatile multi-year timeframes of typical market cycles for natural resources, the result was a six-year decline in

8580-488: The OPEC was the first intergovernmental body to leave the country because of restrictions on foreigners. Austria was keen to attract international organizations and offered attractive terms to the OPEC. During the early years of OPEC, the oil-producing countries had a 50/50 profit agreement with the oil companies. OPEC bargained with the dominant oil companies (the Seven Sisters), but OPEC faced coordination problems among its members. If one OPEC member demanded too much from

8712-420: The Persian Gulf. In the 19th century, Kuwait became significant in the horse trade , with regular shipments in sailing vessels. In the mid 19th century, it was estimated that Kuwait exported an average of 800 horses to India annually. In 1899, ruler Sheikh Mubarak Al Sabah signed an agreement with the British government in India (subsequently known as the Anglo-Kuwaiti Agreement of 1899 ) making Kuwait

8844-591: The Technical Affairs Department jointly form the Arab Center for Energy Studies, established in 1983. The Judicial Tribunal mitigates disputes between member states; interpretations of the OAPEC Agreement; disputes with a petroleum company operating in its member states' territory, and anything else that falls into OAPEC's jurisdiction or that the Council of Ministers submits to the tribunal. The Judicial Tribunal must unevenly consist of at least seven and no more than eleven judges from Arab countries. The tribunal's judgments are final and binding, and will be enforceable within

8976-442: The US following the breakup of John D. Rockefeller 's original Standard Oil monopoly. Oil-exporting countries were eventually motivated to form OPEC as a counterweight to this concentration of political and economic power . In February 1959, as new supplies were becoming available, the multinational oil companies (MOCs) unilaterally reduced their posted prices for Venezuelan and Middle Eastern crude oil by 10 percent. Weeks later,

9108-410: The Ubaid period. Other Neolithic sites in Kuwait are located in Khiran and Sulaibikhat . Mesopotamians first settled in the Kuwaiti island of Failaka in 2000 BC. Traders from the Sumerian city of Ur inhabited Failaka and ran a mercantile business. The island had many Mesopotamian-style buildings typical of those found in Iraq dating from around 2000 BC. In 4000 BC until 2000 BC, Kuwait

9240-465: The United States led a coalition to remove the Iraqi forces from Kuwait, in what became known as the Gulf War . On 26 February 1991, in phase of code-named Operation Desert Storm , the coalition succeeded in driving out the Iraqi forces. As they retreated, Iraqi forces carried out a scorched earth policy by setting oil wells on fire. OPEC The Organization of the Petroleum Exporting Countries ( OPEC , / ˈ oʊ p ɛ k / OH -pek )

9372-415: The Uqair conference, Kuwait was still subjected to a Saudi economic blockade and intermittent Saudi raiding . Kuwait immensely declined in regional economic importance, due to the trade blockades and the world economic depression. Before Mary Bruins Allison visited Kuwait in 1934, Kuwait had already lost its prominence in long-distance trade. The Great Depression harmed Kuwait's economy, starting in

9504-482: The aim of securing a regular supply to consuming countries at a price that gave a fair return on capital investment. OPEC members strongly prefer to describe their organisation as a modest force for market stabilisation, rather than a powerful anti-competitive cartel. In its defense, the organisation was founded as a counterweight against the previous " Seven Sisters " cartel of multinational oil companies, and non-OPEC energy suppliers have maintained enough market share for

9636-476: The amount of petrol that could be dispensed, closed on Sundays, and restricted the days when petrol could be purchased, based on number plate numbers. Even after the embargo ended in March 1974, following intense diplomatic activity, prices continued to rise. The world experienced a global economic recession , with unemployment and inflation surging simultaneously , steep declines in stock and bond prices, major shifts in trade balances and petrodollar flows , and

9768-457: The annual budget. However, since Saudi Arabia is by far the largest and most-profitable oil exporter in the world, with enough capacity to function as the traditional swing producer to balance the global market, it serves as "OPEC's de facto leader". At various times, OPEC members have displayed apparent anti-competitive cartel behavior through the organisation's agreements about oil production and price levels. Economists often cite OPEC as

9900-665: The attack, Carlos's accomplices revealed that the operation was commanded by Wadie Haddad , a founder of the Popular Front for the Liberation of Palestine . They also claimed that the idea and funding came from an Arab president, widely thought to be Muammar Gaddafi of Libya, itself an OPEC member. Fellow militants Bassam Abu Sharif and Klein claimed that Carlos received and kept a ransom between 20 million and US$ 50 million from "an Arab president". Carlos claimed that Saudi Arabia paid ransom on behalf of Iran, but that

10032-703: The attacks. After the Battle of Jahra, Ibn Saud's warriors, the Ikhwan , demanded that Kuwait follows five rules: evict all the Shias , adopt the Ikhwan doctrine , label the Turks " heretics ", abolish smoking, munkar and prostitution, and destroy the American missionary hospital. The Kuwait–Najd War of 1919–20 erupted in the aftermath of World War I . The war occurred because Ibn Saud of Najd wanted to annex Kuwait. The sharpened conflict between Kuwait and Najd led to

10164-503: The best price available from the major oil corporations." The Middle Eastern members originally called for OPEC headquarters to be in Baghdad or Beirut, but Venezuela argued for a neutral location, and so the organization chose Geneva , Switzerland. On 1 September 1965, OPEC moved to Vienna , Austria, after Switzerland declined to extend diplomatic privileges . At the time, Switzerland was attempting to reduce their foreign population and

10296-616: The budget, approve staff regulations, and develops an agenda for the Council of Ministers depending on their analyses of the organizations activities. One senior official from each member state serves on the Executive Bureau. The General Secretariat is led by the Secretary General, who is currently Jamal Essa Al Loughani, and includes four departments: Finance and Administrative Affairs; Information and Library; Economics; and Technical Affairs. The Economics Department and

10428-589: The context of the Arab Cold War . It was also in 1952 that the first masterplan of Kuwait was designed by the British planning firm of Minoprio , Spenceley , and Macfarlane. In 1958, Al-Arabi magazine was first published. Many foreign writers moved to Kuwait because they enjoyed greater freedom of expression than elsewhere in the Middle East. Kuwait's press was described as one of the freest in

10560-509: The country's political system. Kuwait's official state religion is Islam, specifically the Maliki school of Sunni Islam. Kuwait is a high-income economy , backed by the world's sixth largest oil reserves . Kuwait is considered to be a pioneer in the region when it comes to the arts and popular culture, often called the "Hollywood of the Gulf", the nation started the oldest modern arts movement in

10692-408: The course of market cycles, oil reserves can themselves become a source of serious conflict, instability and imbalances, in what economists call the " natural resource curse ". A further complication is that religion-linked conflicts in the Middle East are recurring features of the geopolitical landscape for this oil-rich region. Internationally important conflicts in OPEC's history have included

10824-592: The creation of OPEC, individual oil-producing states were punished for taking steps to alter the governing arrangements of oil production within their borders. States were coerced militarily (e.g. in 1953, the US-UK-sponsored a coup against Mohammad Mosaddegh after he nationalized Iran's oil production) or economically (e.g. the Seven Sisters slowed down oil production in one non-compliant state and ramped up oil production elsewhere) when acted contrary to

10956-515: The death of hundreds of Kuwaitis. The war resulted in sporadic border clashes throughout 1919–1920. When Percy Cox was informed of the border clashes in Kuwait, he sent a letter to the Ruler of Arabistan Sheikh Khazʽal Ibn Jabir offering the Kuwaiti throne to either him or one of his heirs. Khaz'al refused. He then asked: ...even so, do you think that you have come to me with something new? Al Mubarak's position as ruler of Kuwait means that I am

11088-567: The early 1970s, OPEC's membership accounted for more than half of worldwide oil production. Indicating that OPEC is not averse to further expansion, Mohammed Barkindo , OPEC's acting secretary general in 2006, urged his African neighbors Angola and Sudan to join, and Angola did in 2007, followed by Equatorial Guinea in 2017. Since the 1980s, representatives from Canada, Egypt, Mexico, Norway, Oman, Russia, and other oil-exporting nations have attended many OPEC meetings as observers, as an informal mechanism for coordinating policies. The oil market

11220-490: The end of that year, having become a net importer of oil and being unable to meet its production quota. A statement released by OPEC on 10 September 2008 confirmed Indonesia's withdrawal, noting that OPEC "regretfully accepted the wish of Indonesia to suspend its full membership in the organization, and recorded its hope that the country would be in a position to rejoin the organization in the not-too-distant future." The differing economic needs of OPEC member states often affect

11352-472: The extent of poverty in Kuwait at the time: Poverty has settled in Kuwait more heavily since my last visit five years ago, both by sea, where the pearl trade continues to decline, and by land, where the blockade established by Saudi Arabia now harms the merchants. On 22 February 1938, oil was first discovered in the Burgan field . Between 1946 and 1980, Kuwait experienced a period of prosperity driven by oil and its liberal cultural atmosphere; this period

11484-572: The frequent cheating is that OPEC does not punish members for non-compliance with commitments. In June 2020, all countries participating in the OPEC+ framework collectively agreed to the introduction of a Compensation Mechanism aimed at ensuring full conformity with and adherence to the agreed-upon oil production cuts. This initiative aligns with one of OPEC's stated objectives: to maintain a stable oil market, which, notably, has been relatively more stable than other energy commodities. The OPEC Conference

11616-409: The frequent disputes and instabilities tend to limit OPEC's long-term cohesion and effectiveness. In 1949, Venezuela initiated the move towards the establishment of what would become OPEC, by inviting Iran, Iraq, Kuwait and Saudi Arabia to exchange views and explore avenues for more regular and closer communication among petroleum-exporting nations as the world recovered from World War II . At

11748-582: The global crude-oil market. Canada, Egypt, Norway, and Oman are observer states. In a series of steps in the 1960s and 1970s, OPEC restructured the global system of oil production in favor of oil-producing states and away from an oligopoly of dominant Anglo-American oil firms (the Seven Sisters). Coordination among oil-producing states within OPEC made it easier for them to nationalize oil production and structure oil prices in their favor without incurring punishment by Western governments and firms. Prior to

11880-608: The guerrillas allowed to fly to Aden . This was the first time Palestinian guerrillas struck in Kuwait as the Al Sabah ruling family, headed by Sheikh Sabah Al-Salim Al-Sabah, funded the Palestinian resistance movement. Kuwait had been a regular endpoint for Palestinian plane hijacking in the past and had considered itself safe. Kuwait International Airport was opened in 1979 by the Al Hani Construction with

12012-437: The interests of the Seven Sisters and their governments. The organisational logic that underpins OPEC is that it is in the collective interest of its members to limit the world oil supply in order to reap higher prices. However, the main problem within OPEC is that it is individually rational for members to cheat on commitments and produce as much oil as possible. Political scientist Jeff Colgan has argued that OPEC has since

12144-406: The internal debates behind OPEC production quotas. Poorer members have pushed for production cuts from fellow members, to increase the price of oil and thus their own revenues. These proposals conflict with Saudi Arabia's stated long-term strategy of being a partner with the world's economic powers to ensure a steady flow of oil that would support economic expansion. Part of the basis for this policy

12276-428: The invasion was finally averted following plans by the Arab League to form an international Arab force against the potential Iraqi invasion of Kuwait. As a result of Operation Vantage, the Arab League took over the border security of Kuwait and the British had withdrawn their forces by 19 October. Iraqi prime minister Abd al-Karim Qasim was killed in a coup in 1963 but, although Iraq recognised Kuwaiti independence and

12408-469: The late 1920s. International trading was one of Kuwait's main sources of income before oil. Kuwait's merchants were mostly intermediary merchants. As a result of the decline of European demand for goods from India and Africa, Kuwait's economy suffered. The decline in international trade resulted in an increase in gold smuggling by Kuwait's ships to India. Some local merchant families became rich from this smuggling. Kuwait's pearl industry also collapsed as

12540-437: The leadership of Saddam Hussein following disputes over oil production. The Iraqi occupation of Kuwait ended on 26 February 1991, following an American – British – French – Saudi – Egyptian - led international coalition culminating in the expulsion of Iraqi forces . Like most other Arab states of the Persian Gulf , Kuwait is an emirate ; the emir is the head of state and the ruling Al Sabah family dominates

12672-492: The market with cheap oil, causing prices to fall below US$ 10/bbl and higher-cost producers to become unprofitable. These strategic measures by Saudi Arabia to regulate oil prices had profound economic repercussions. As the swing producer in that period, the Kingdom faced significant economic strain. Its revenues dramatically decreased from $ 119 billion in 1981 to $ 26 billion by 1985, leading to substantial budget deficits and

12804-475: The member nations would use this sense of control to renegotiate the contracts they had made with the companies that had discovered and exploited their resources. The vastly increased revenues would prove addictive, and a unified OAPEC oil embargo was never again possible. In 1979, Egypt was expelled from OAPEC for signing the Camp David Accords , although it was readmitted a decade later. In 1982,

12936-781: The mid 1700s, the Bani Utbah settled in Kuwait City. Sometime after the death of the Bani Khalid's leader Barak bin Abdul Mohsen  [ ar ] and the fall of the Bani Khalid Emirate , the Utub were able to wrest control of Kuwait as a result of successive matrimonial alliances . In the latter half of the eighteenth century, Kuwait began establishing itself as a maritime port and gradually became

13068-464: The military threat was perceived to be reduced, Britain continued to monitor the situation and kept forces available to protect Kuwait until 1971. There had been no Iraqi military action against Kuwait at the time: this was attributed to the political and military situation within Iraq which continued to be unstable. A treaty of friendship between Iraq and Kuwait was signed in 1963 by which Iraq recognised

13200-874: The money was "diverted en route and lost by the Revolution". He was finally captured in 1994 and is serving life sentences for at least 16 other murders. In response to a wave of oil nationalizations and the high prices of the 1970s, industrial nations took steps to reduce their dependence on OPEC oil, especially after prices reached new peaks approaching US$ 40/bbl in 1979–1980 when the Iranian Revolution and Iran–Iraq War disrupted regional stability and oil supplies. Electric utilities worldwide switched from oil to coal, natural gas, or nuclear power; national governments initiated multibillion-dollar research programs to develop alternatives to oil; and commercial exploration developed major non-OPEC oilfields in Siberia, Alaska,

13332-438: The national governments of OPEC members are able to impose production limits on both government-owned and private oil companies.) Generally when OPEC production targets are reduced, oil prices increase. Leading up to his August 1990 Invasion of Kuwait , Iraqi President Saddam Hussein was pushing OPEC to end overproduction and to send oil prices higher, in order to help OPEC members financially and to accelerate rebuilding from

13464-586: The new quotas, they stated anonymously that they would not observe them. The New York Times quoted one such delegate as saying: "Saudi Arabia will meet the market's demand. We will see what the market requires and we will not leave a customer without oil. The policy has not changed." Over the next few months, oil prices plummeted into the $ 30s, and did not return to $ 100 until the Libyan Civil War in 2011. During 2014–2015, OPEC members consistently exceeded their production ceiling, and China experienced

13596-430: The oil companies, then the oil companies could slow down production in that country and ramp up production elsewhere. The 50/50 agreements were still in place until 1970 when Libya negotiated a 58/42 agreement with the oil company Occidental , which prompted other OPEC members to request better agreements with oil companies. > In 1971, an accord was signed between major oil companies and members of OPEC doing business in

13728-428: The oil ministers' deaths would result in an attack on the plane. Boumédienne must also have offered Carlos asylum at this time and possibly financial compensation for failing to complete his assignment. Carlos expressed his regret at not being able to murder Yamani and Amuzegar, then he and his comrades left the plane. All the hostages and terrorists walked away from the situation, two days after it began. Sometime after

13860-520: The organization: "A cartel needs to set tough goals and meet them; OPEC sets easy goals and fails to meet even those." OPEC has not been involved in any disputes related to the competition rules of the World Trade Organization , even though the objectives, actions, and principles of the two organisations diverge considerably. A key US District Court decision held that OPEC consultations are protected as "governmental" acts of state by

13992-611: The original 63 hostages, with stops in Algiers and Tripoli , planning to fly eventually to Baghdad , where Yamani and Amuzegar were to be killed. All 30 non-Arab hostages were released in Algiers, excluding Amuzegar. Additional hostages were released at another stop in Tripoli before returning to Algiers. With only 10 hostages remaining, Carlos held a phone conversation with Algerian president Houari Boumédiène , who informed Carlos that

14124-675: The price of oil, which culminated by plunging more than half in 1986 alone. As one oil analyst summarized succinctly: "When the price of something as essential as oil spikes, humanity does two things: finds more of it and finds ways to use less of it." To combat falling revenue from oil sales, in 1982 Saudi Arabia pressed OPEC for audited national production quotas in an attempt to limit output and boost prices. When other OPEC nations failed to comply, Saudi Arabia first slashed its own production from 10 million barrels daily in 1979–1981 to just one-third of that level in 1985. When even this proved ineffective, Saudi Arabia reversed course and flooded

14256-519: The profitability of high-cost US shale oil production. As he explained in an interview: Is it reasonable for a highly efficient producer to reduce output, while the producer of poor efficiency continues to produce? That is crooked logic. If I reduce, what happens to my market share? The price will go up and the Russians, the Brazilians, US shale oil producers will take my share... We want to tell

14388-593: The result of the Battle of Hamdh . A force of three to four thousand Ikhwan , led by Faisal Al-Dawish , attacked the Red Fort at Al-Jahra, defended by fifteen hundred men. The fort was besieged and the Kuwaiti position precarious The Ikhwan attack repulsed for the while, negotiations began between Salim and Al-Dawish; the latter threatened another attack if the Kuwaiti forces did not surrender. The local merchant class convinced Salim to call in help from British troops, who showed up with airplanes and three warships, ending

14520-519: The socio-economic growth of poorer nations. The OPEC Special Fund was conceived in Algiers, Algeria , in March 1975, and was formally established the following January. "A Solemn Declaration 'reaffirmed the natural solidarity which unites OPEC countries with other developing countries in their struggle to overcome underdevelopment,' and called for measures to strengthen cooperation between these countries... [The OPEC Special Fund's] resources are additional to those already made available by OPEC states through

14652-575: The struggle against Israel had been regularly proposed at Arab Petroleum Congresses, but it took the Six-Day War for the embargo to happen. However, Saudi Arabia's oil production was up by 9% that year, and the main embargo lasted only ten days and was completely ended by the Khartoum Conference . OAPEC was originally intended to be a conservative Arab political organization which, by restricting membership to countries whose main export

14784-450: The summer heat caused the government to move it). At the time, Kuwait was considered the most developed country in the region. Kuwait was the pioneer in the Middle East in diversifying its earnings away from oil exports. The Kuwait Investment Authority is the world's first sovereign wealth fund. Kuwaiti society embraced liberal and non-traditional attitudes throughout the 1960s and 1970s. For example, most Kuwaiti women did not wear

14916-554: The supreme authority over the Executive Bureau, the General Secretariat, and the Judicial Tribunal. The Council of Ministers is formed by each member state's minister of petroleum and they work together to construct general policy and ensure the organization's goals and actions are being achieved and implemented. The Executive Bureau assists the Council of Ministers by meet at least three times a year to review

15048-577: The territories of residing members. As of December 2020, OAPEC has 11 members countries, 6 of which are also OPEC members: Kuwait Kuwait , officially the State of Kuwait , is a country in West Asia . It is situated in the northern edge of the Arabian Peninsula at the tip of the Persian Gulf , bordering Iraq to the north and Saudi Arabia to the south . With a coastline of approximately 500 km (311 mi), Kuwait also shares

15180-585: The time of Alexander the Great, the mouth of the Euphrates River was located in northern Kuwait. The Euphrates river flowed directly into the Persian Gulf via Khor Subiya which was a river channel at the time. Failaka was located 15 kilometers from the mouth of the Euphrates river. By the first century BC, the Khor Subiya river channel dried out completely. In 127 BC, Kuwait was part of

15312-623: The time, some of the world's largest oil fields were just entering production in the Middle East. The United States had established the Interstate Oil Compact Commission to join the Texas Railroad Commission in limiting overproduction. The US was simultaneously the world's largest producer and consumer of oil; the world market was dominated by a group of multinational companies known as the " Seven Sisters ", five of which were headquartered in

15444-420: The true ruler of Kuwait. So there is no difference between myself and them, for they are like the dearest of my children and you are aware of this. Had someone else come to me with this offer, I would have complained about them to you. So how do you come to me with this offer when you are well aware that myself and Al Mubarak are one soul and one house, what affects them affects me, whether good or evil. Following

15576-482: The two countries ensued after Kuwait increased its oil production by 40 percent. Tensions between the two countries increased further in July 1990, after Iraq complained to OPEC claiming that Kuwait was stealing its oil from a field near the border by slant drilling of the Rumaila field . In August 1990, Iraqi forces invaded and annexed Kuwait without any warning. After a series of failed diplomatic negotiations,

15708-411: The umbrella of the Arab League , considering OAPEC too conservative. Equally the three founders considered Iraq too radical to be desirable as a member. However, by early 1972, the criterion for admission had changed to oil being a significant source of revenue (rather than the principal source) of a prospective member nation; and Algeria, Iraq, Syria and Egypt had been admitted. Consequently, OAPEC became

15840-468: The warnings, and with the US favoring Canadian and Mexican oil for strategic reasons, the MOCs again unilaterally announced significant cuts in their posted prices for Middle Eastern crude oil. The following month, during 10–14 September 1960, the Baghdad Conference was held at the initiative of Tariki, Pérez Alfonzo, and Iraqi prime minister Abd al-Karim Qasim , whose country had skipped

15972-420: The world . Before the discovery of oil reserves in 1938, the country was a regional trade port; from 1946 to 1982, the country underwent large-scale modernization, largely based on income from oil production . In the 1980s, Kuwait experienced a period of geopolitical instability and an economic crisis following the stock market crash . In 1990, Kuwait was invaded and subsequently annexed by Iraq under

16104-584: The world . Kuwait was the pioneer in the literary renaissance in the Middle East. In June 1961, Kuwait became independent with the end of the British protectorate and the Sheikh Abdullah Al-Salim Al-Sabah became Emir of Kuwait . Kuwait's national day , however, is celebrated on 25 February, the anniversary of the coronation of Sheikh Abdullah (it was originally celebrated on 19 June, the date of independence, but concerns over

16236-577: The world adequately supplied. In the 1990s, OPEC lost its two newest members, who had joined in the mid-1970s. Ecuador withdrew in December 1992, because it was unwilling to pay the annual US$ 2 million membership fee and felt that it needed to produce more oil than it was allowed under the OPEC quota, although it rejoined in October 2007. Similar concerns prompted Gabon to suspend membership in January 1995; it rejoined in July 2016. Iraq has remained

16368-686: The world that high-efficiency producing countries are the ones that deserve market share. That is the operative principle in all capitalist countries... One thing is for sure: Current prices [roughly US$ 60/bbl] do not support all producers. A year later, when OPEC met in Vienna on 4 December 2015, the organization had exceeded its production ceiling for 18 consecutive months, US oil production had declined only slightly from its peak, world markets appeared to be oversupplied by at least 2 million barrels per day despite war-torn Libya pumping 1 million barrels below capacity, oil producers were making major adjustments to withstand prices as low as $ 40, Indonesia

16500-480: Was home to the Dilmun civilization . Dilmun included Al-Shadadiya, Akkaz , Umm an Namil , and Failaka . At its peak in 2000 BC, Dilmun controlled the Persian Gulf trading routes. During the Dilmun era (from ca. 3000 BC), Failaka was known as " Agarum ", the land of Enzak , a great god in the Dilmun civilization according to Sumerian cuneiform texts found on the island. As part of Dilmun, Failaka became

16632-536: Was known as Meshan , which was an alternative name of the kingdom of Characene. Akkaz was a Partho - Sassanian site; the Sassanid religion 's tower of silence was discovered in northern Akkaz. Late Sassanian settlements were discovered in Failaka. In Bubiyan , there is archaeological evidence of Sassanian to early Islamic periods of human presence as evidenced by the recent discovery of torpedo-jar pottery shards on several prominent beach ridges. In 636 AD,

16764-431: Was oil, would exclude governments seen as radical – such as those of Egypt and Algeria . This organizational exclusivity was bolstered by an additional rule in the organization's charter requiring the three founders' approval of all new members. The original aim was to control the economic weapon of potential oil embargo and prevent its use caused by popular emotion. Iraq initially declined to join, preferring to work under

16896-612: Was orchestrated by a six-person team led by Venezuelan terrorist " Carlos the Jackal ", and which included Gabriele Kröcher-Tiedemann and Hans-Joachim Klein . The self-named "Arm of the Arab Revolution" group declared its goal to be the liberation of Palestine . Carlos planned to take over the conference by force and hold for ransom all eleven attending oil ministers, except for Yamani and Amuzegar who were to be executed. Carlos arranged bus and plane travel for his team and 42 of

17028-518: Was part of ancient Mesopotamia . During the Ubaid period (6500 BC), Kuwait was the central site of interaction between the peoples of Mesopotamia and Neolithic Eastern Arabia , including Bahra 1 and site H3 in Subiya . The Neolithic inhabitants of Kuwait were among the world's earliest maritime traders. One of the world's earliest reed boats was discovered at site H3 dating back to

17160-557: Was rejoining the export organization, Iraqi production had surged after years of disorder, Iranian output was poised to rebound with the lifting of international sanctions , hundreds of world leaders at the Paris Climate Agreement were committing to limit carbon emissions from fossil fuels, and solar technologies were becoming steadily more competitive and prevalent. In light of all these market pressures, OPEC decided to set aside its ineffective production ceiling until

17292-484: Was tight in the early 1970s, which reduced the risks for OPEC members in nationalising their oil production. One of the major fears for OPEC members was that nationalisation would cause a steep decline in the price of oil. This prompted a wave of nationalisations in countries such as Libya, Algeria, Iraq, Nigeria, Saudi Arabia and Venezuela. With greater control over oil production decisions and amid high oil prices, OPEC members unilaterally raised oil prices in 1973, prompting

17424-534: Was under the control of the Achaemenid Empire as evidenced by the archaeological discovery of Achaemenid strata. There are Aramaic inscriptions that testify Achaemenid presence. In fourth century BC, the ancient Greeks colonized the bay of Kuwait under Alexander the Great . The ancient Greeks named mainland Kuwait Larissa and Failaka was named Ikaros . The bay of Kuwait was named Hieros Kolpos . According to Strabo and Arrian , Alexander

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