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0 Oct 14 2010 @ 8:50am by Matt Smith in Crude Oil, Global Energy, risk management

Lies, Non-Lies, and Statistics – The Opec Quiz

As Opec meet today for only the second time this year, take part in this True or False Quiz to see how well you know the smoke, the mirrors, the confusing cartel that is Opec. Find the answers at the end and score yourself (c’mon folks, be honest):

1) Opec stands for the Organization of the Petroleum Exporting Countries

2) There are thirteen members of Opec: Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia,  United Arab Emirates, Venezuela

3) They produce approximately 40% of the world’s 87 million barrels-a-day of oil

4) Opec is the same age as Dan Marino

5) Iraq hasn’t had an official production quota since 1990, when they were sanctioned by the UN

iddi biddi biddi Opec logo

6) The way Summit Energy Risk VP Tim Statts remembers the members is by applying his trivia logic to break them up into 6 – 4 – 2 (there’s 6 in the Middle East, 4 in Africa, 2 in South America)

7) In 2008, Opec made a decision to cut 4.2 million barrels-a-day of production, and has adhered to it to balance the market and raise prices

8) Nigeria is currently the largest overproducer versus their quota target, in both percentage and absolute terms

9) Opec’s logo was designed in the seventies by Buck Rogers and Twiki 

10) This week’s Opec meeting is somewhat of a non-event, as all members seem happy with prices around $70-$80. The loose cannon that is Venezuela, however, has the wrong hymn sheet and is singing for $90-$100 a barrel next year

Answers:
1) True
2) False – there’s only twelve – count ’em
3) True
4) False – Dan Marino was born one year later (less one day) on September 15, 1961
5) True
6) True – he takes his trivia very seriously 
7) False – they are currently only 54% compliant with the cut (only 2.26 million barrels cut)  
8) True
9) Half True – the logo was adopted in 1970
10) Sadly True

Assess your score: 1-4 = a crude performance, 5-7.5 = back to cartel class for you , 8-10 = oil baron / baroness in the making 

For newcomers to the blog, here’s a little ditty I wrote about Opec last year, that found its way onto the Financial Times website, and also got me a couple of death threats (in keeping with the post the first bit is true, second bit false). For clients there will be more Opec fun in the upcoming European and North American Weekly Outlook…thanks to all for playing!

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