OPEC

The level of Saudi Arabia's oil production varies according to the state of the world oil market and the quotas of the Organization of Petroleum Exporting Countries (OPEC). The Supreme Council for Petroleum and Minerals (SCPM) was formed in 1999 to oversee all affairs in that area, and has reaffirmed the Kingdom's firm policy regarding the petroleum market, which aims at achieving balance to ensure the interests of the exporting countries, continued world economic growth and stability of petroleum supplies and prices at reasonable levels.

As a founding and principal member of OPEC, Saudi Arabia has assumed a leading role in guiding the organization to be a constructive force for cooperation in energy issues. OPEC was set up in 1960 to unify petroleum policies among its members throughout the world and to ensure stability in international oil markets by eliminating unnecessary and harmful fluctuation in oil prices. OPEC strives to protect the interests of its members and is dedicated to maintaining an economical and reliable supply of petroleum to consuming countries. Another goal of OPEC is to provide a fair return on capital for investors in the petroleum industry.

As OPEC's largest producer, Saudi Arabia realizes the importance of a stable global economy, and has therefore acted as the organization's principal moderating force. Over the years, the Kingdom has helped to prevent market crises that promised to harm both oil producer and consumers. As an example, during the Gulf Crisis of 1990-91, global markets were deprived of approximately four million barrels per day of crude oil supplies from Iraq and Kuwait. Saudi Arabia immediately responded by increasing production, thereby averting what could have been a disastrous shortfall in world supplies. Similarly, during the market fluctuations of the late 1990s, and in 2003 with the Iraq war, the Kingdom adjusted its production accordingly.