Model OPEC 2018 organized by WPC Young Professionals Poland (part of WPC Polish National Committee) was the 1st Polish simulation of OPEC Meeting, dedicated for Young Professionals.OPEC – Organization of Petroleum Exporting Countries, founded in 1960, is an international cartel that controls global supply of crude oil. It was responsible for i.a. oil shock in 1973 that resulted in an economic crisis. Nowadays there are 14 member countries (Saudi Arabia, Iran, Iraq, Venezuela, Kuwait, etc.). Organization’s main goal is to maintain high level of oil prices through setting production quotas. The decisions are made during meetings of OPEC members’ representatives. Model OPEC 2018 was simulation of such Meeting.The event was conducted in the form of 12-round game – simulation of the oil market in years 2016-2076 (12x5 years). Participants, grouped in 1- or 2-person teams, play representants of countries-members of OPEC. In each round teams negotiate with each other on quotas of crude oil production and set amount of production, oil stocks and some economic variables. Results of their actions influence market and country situation in the next round.The game mechanism has been designed to reflect real petroleum market, market power of OPEC and specific situation of each country. Thus, when negotiating teams should take into consideration not only market factors but also economic situation of particular country. What is more, OPEC’s market power is not visible if there is no cooperation between the teams. However, there is also an element of competition between teams – each one has to retain as much profits from oil production as possible. This factor is used to choose a winner.
Model OPEC 2018 was held during the Session of Youth and Innovation as part of the 12th Polish Congress of Oil and Gas Industry Professionals (https://www.sitpnig.pl/12-pknig-en) - one of the largest oil conferences in Poland. Participants of the simulation also had the opportunity to participate in paper sessions and workshops during the Congress on May 17-18th in Cracow, Poland.There were 11 participating teams – 10 from Poland and 1 from Iran, representing student scientific associations focused on energy. They came from not only technical universities (AGH University of Science and Technology Krakow) but also financial schools (Warsaw School of Economics) and legal faculties (Jagiellonian University). Participants were selected on the basis of their answers on questions about future of oil industry that were given when sending application form, 2 months in advance of the event. During the simulation they had to face with and recognize results for the oil market of such events as: “OPEC+” countries changeable policy, overestimates of lithium reserves in Bolivia, pirates attacks in Middle East, depletion of Norwegian Oil Shelf reserves, and many others.
After 4-hour game organizers found 3 the best performing teams of Model OPEC 2018:
Jakub Stańko and Filip Mazurkiewicz (AGH University of Science and Technology) as “Iraq”
Bartłomiej Kupiec and Radosław Wojnarski (Jagiellonian University) as “Algeria”
Mostafa Baiazidi (Cyprus International University) as “Iran”
The simulation was conducted in English.
The main goals of Model OPEC 2018 from organizers’ point of view were:
Popularization of knowledge about global petroleum industry, megatrends on energy markets and activity of international economic cartels
Negotiations skills and teamwork development
Public speaking skills development
Language skills development
Giving Young Professionals the possibility to meet and exchange their views on petroleum industry with other Young Professionals and experts.
After the event it can be acknowledged that these objectives were achieved. Model OPEC 2018 was very well recognized not only by the participants but also professionals attending the Congress. Moreover, the simulation game gain the support of Orlen Upstream Sp. z o.o., The Scientific Association of the Oil and Gas Industry Engineers and Technicians – SAOGIET (as sponsors), Lesław A. Paga Foundation and World Petroleum Council (as honorary patrons). Taking into account all positive reactions and strong educational advantages it is hoped that the event will be organized again in the future.
More information about the event on the Facebook website: https://www.facebook.com/.
(Fot. K. Korona, Arch: SAOGIET)