Association of Oil Producing Nations

Association of Oil Producing Nations (APON)
Flag
Location of Association of Oil Producing Nations (APON)
Headquarters	Fakolana
Official language	Ghantish Latin
Type	International cartel
Membership	# states Ghant Mutul Sydalon
Leaders
• Secretary General	TBD
Establishment	TBD
• Statute	September 1970
• In effect	January 1971

The Association of Oil Producing Nations (Mutli : Luub Ik'kanoom) is an intergovernmental organization of # nations, founded in 19XX, and headquartered in Fakolana. The APON was founded to coordinate petroleum policies of the member states. The current members are: Ghant, Mutul, and Sydalon.

History

Sydalene Civil War

Main article: Sydalene Revolution

The AOPN ended up playing a small yet important role in the Sydalene Revolution. It notably served as an unofficial de-facto channel of communication between the State and the Kingdom of Sydalon, but also served as a way for some of its members, like the Mutul, to raise their concern on the question of oil production. An AOPN meeting at their headquarter in Fakolana allowed the two side of the civil war to find an agreement over the operation of the oil fields in the country. This allowed for Sydalon to barely reduce its production compared to its pre-war levels, mostly due to a shortage of competent and willing personnel at the height of the conflict. The exact nature of the negociations that led to such an agreement to be signed have not been disclosed by the Association, but seems to have involved main members threatening to use economic tools against both side if Sydalon did not reach its production quotas.

While the agreement calmed international markets, its exact influence on the war is not yet fully understood. It forced both side to de-facto recognize each other and allowed the one in charge of an oil well to gain profits from it unimpeded. The former was a great diplomatic victory for the republicans, and the second could potentially favour them in the long run. Yet some suppose that AOPN, now greatly involved and implanted in Sydalon after the signature of these agreements, played a role in the Intelligence Gathering and backroom negociations that allowed the swift victory of the Monarchists in the following months. Such theories often devolve into conspiracy theory.

Functioning

The AOPN seek to regulate the production and the price of petrochemicals products through the coordinated effort of its members, notably through a system of quotas. Thus they work as a cartel of producers, agreeing on the quantity of oil exported to influence the market prices.

Transactions are done in Latin solidus. The fluctuation in the exchange rates between the Solidus and the national moneys of producers has consequences on the decisions of the AOPN.

Unlike other cartels, the AOPN has been successful in its attempts to raise prices for long period of time. Part of this success is due to the willingness of some of its members to reduce their productions when others go over their quotas. As such countries like Sydalon, the Mutul, and Ghant keep reserves as a way to better control the prices. This leniency has been a factor in the AOPN's atractiveness toward some of the less developed oil producers.

Despite this, the Association has also been known to send signals to the markets by avoiding the creation of speculative bubbles and other economic disturbances. "Balance and Stability" as it was resumed following the negociations surrounding the Sydalene Civil War. Some observers have theorized that the AOPN possess a bigger influence on the petrochemical industry than often estimated because of this ability to plan on the long term, re-assuring buyers and investors often convinced by the AOPN's self-proclaimed clout by its past shows of strength, such as its aforementioned role in Sydalon.

But despite this, the rise of commodity exchanges in Seredinia, an important oil producer not part of the AOPN, and other countries, has led to the emergence of a counterweight to the AOPN. In reaction, the AOPN has pushed the Ghish International Petroleum Bourse as its main market for the exchange of crude oil, petroleum, gas, and other petrochemicals. The specificity of this commodity exchange reside in the fact it doesn't use the Latin Solidus. Instead all exchanges are done primarily in the currencies of the member countries.

The Association also operate an "International Development Fund" based in Fakolana with the objective to reinforce financial cooperation between member countries and other developing countries, by providing financial support to the latter for their socioeconomic development. Being granted a loan from the Fund is generally considered to be the first step toward a future membership, as can be seen in the on-going candidacy of Charnea.

Membership

Country	Region	Membership year	Population	Oil Production (bbl/days)	Proven Reserves (bbl)
Fahran	Scipia	19XX	35 millions	???	???
Ghant	Ghant	197X	55 millions	???	???
Mutul	Oxidentale	197X	120 millions	3.5 millions	???
Sydalon	Scipia	14,7 millions	19XX	???	???