OPEC dissolves

Political event

The Organisation of Petroleum Exporting Countries dissolved as Russia and the United States of America became the largest oil-producing countries in the world. The most oil was being produced under offshore drilling projects under the United Nations collaborations. Under this new arrangement, it became impossible for the already exhausted oil reserves of the OPEC countries to produce oil at a profitable rate, thus resulting in the collapse of the organisation.

The Organisation of Petroleum Exporting Countries was one of the largest oil producers and the largest oil exporters in the world. However, since they had held that position for very long, the viabilities of their oil drilling projects were slowly getting exhausted. After 2047, the United Nations-led projects, as well as US and Russian projects, were proven to be much cheaper and thus more profitable. Lower prices meant that higher-OPEC prices were being shunned and neglected.   In 2053, Iran exited OPEC in order to pursue closer relationships with the Russian Federation. This was swiftly followed by Indonesia and Venezuela suspending their OPEC membership as well. Iraq and the United Arab Emirates followed suit in August 2054. Foreign allies started pressurising other OPEC countries to leave in favour of more bilateral trade agreements, as they were not in a position of power anymore, even if OPEC had survived. This finally resulted in OPEC announcing it will dissolve in a press release on 11th September 2054.   Though they had lost their power as a major petroleum baron in the international world, the dissolution of OPEC managed to hit international crude oil trade very hard. Prices skyrocketed and did not stop increasing till 2060. The dissolution also resulted in further division of the Middle-East, on the bases of trade allies as well.