Let's understand a bit about the context in which the country found
itself. Angola joined OPEC in 2007 when the country's production was around 1.9
million barrels per day (bpd). Today, the country produces 1.1 bpd,
approximately 45% less than its peak over 15 years ago. The reasons range from
a lack of investment to the absence of new oilfield developments. Also, during
this period, to further complicate oil exploration for the country, oil prices
fell significantly, only rebounding to higher levels in 2022.
Looking within OPEC, the influence of each member is measured by the production of barrels of oil, something that makes Angola less influential in defining the organization's strategy and quota system operation. In this scenario, the African nation understood that the best path to preserve its interests of increasing production would be to exit OPEC.
![](https://lwfiles.mycourse.app/649cb3acac2c0641db4c86b2-public/a9ae073f725df84bc58f8253846cf945.png)
Since approximately 90% of Angola's exports in 2022 consisted of oil and
gas, the country is heavily reliant on crude oil production. While the government
seeks to diversify the economy, oil is likely to remain the country's primary
export commodity in the near future.
Now, in practical terms of supply and demand, what changes with Angola's
exit from OPEC? Not much...
Even if Angola seeks to increase its production, the country faces many challenges. First, the country's output is very close to capacity, so there is no idle space that the country could activate at this moment. Looking over the horizon, attempting to expand its capacity depends on a lot of investment, something that the country does not have now, and it also faces a shortage of foreign investors. Furthermore, even if it did happen, it would take some time to be realized. Therefore, Angola's exit is more worrisome for what it means than for what it results in.
![](https://lwfiles.mycourse.app/649cb3acac2c0641db4c86b2-public/36945d460317309ee400e23aae594620.png)