Qatar has announced its withdrawal from Organization of Petroleum Exporting Countries (OPEC) from January 2019 and focus more on the production of natural gas. It makes Qatar first Gulf country to leave OPEC bloc of oil-producing countries led by Saudi Arabia. Qatar has been member of OPEC since 1961 and its decision to pull out after more than five decades comes at turbulent time in Gulf politics. It is under boycott from its neighbouring gulf allies including Saudi Arabia for 18 months (since August 2017).
Qatar is the world’s largest exporter of liquified natural gas (LPG) and 17th largest producer of crude oil (around 600,000 barrels per day). It also only holds around 2% of the world’s global oil reserves. The withdrawal decision reflects Qatar’s desire to focus its efforts on plans to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.
Being part of OPEC its oil production was steady with limited prospects for increases. Since 2013, amount of oil Qatar produced has steadily declined from about 728,000 barrels per day (2013) to about 607,000 barrels per day (2017), or just under 2% of OPEC’s total output.
Its mission is to coordinate and unify petroleum policies of its member countries and ensure stabilization of oil markets, in order to secure an efficient, economic and regular supply of petroleum to consumers, steady income to producers and fair return on capital for those investing in petroleum industry.