OPEC : The Relationship between OPEC and other International Organizations
The Relationship between OPEC and other International Organizations international trade and mass communication are bringing us all closer together. It is important to remember that oil production was destined to rise and that the prices of crude oil and petroleum products were destined to fall. There is proportionately less intercontinental oil trade than ever. The US supplies over 50% of its needs again and almost all imports are from.
OPEC’s special relationship with the U.S.
This arrangement serves as an informal mechanism for coordinating policies. The Conference ordinarily meets at the Vienna headquarters, at least twice a year and in additional extraordinary sessions when necessary. It generally operates on the principles of unanimity and "one member, one vote", with each country paying an equal membership fee into the annual budget.
Organization of Petroleum Exporting Countries are examples of international cartels which have publicly entailed agreements between different national governments. OPEC members strongly prefer to describe their organization as a modest force for market stabilization, rather than a powerful anti-competitive cartel. In its defense, the organization was founded as a counterweight against the previous " Seven Sisters " cartel of multinational oil companies, and non-OPEC energy suppliers have maintained enough market share for a substantial degree of worldwide competition.
Although events such as these can temporarily disrupt oil supplies and elevate prices, the frequent disputes and instabilities tend to limit OPEC's long-term cohesion and effectiveness.
OPEC Attempts to Recast its Relationship with the United States
This is especially helpful for a natural-resource industry whose smooth functioning requires months and years of careful planning. Benchmark crude oil A "crude oil benchmark" is a standardized petroleum product that serves as a convenient reference price for buyers and sellers of crude oil, including standardized contracts in major futures markets since Benchmarks are used because oil prices differ usually by a few dollars per barrel based on variety, grade, delivery date and location, and other legal requirements.
It is calculated as a weighted average of prices for petroleum blends from the OPEC member countries: OPEC spare capacity provides an indicator of the world oil market's ability to respond to potential crises that reduce oil supplies.
The US was simultaneously the world's largest producer and consumer of oil; and the world market was dominated by a group of multinational companies known as the " Seven Sisters ", five of which were headquartered in the US following the breakup of John D.
Rockefeller 's original Standard Oil monopoly. Oil-exporting countries were eventually motivated to form OPEC as a counterweight to this concentration of political and economic power. Both oil ministers were angered by the price cuts, and the two led their fellow delegates to establish the Maadi Pact or Gentlemen's Agreement, calling for an "Oil Consultation Commission" of exporting countries, to which MOCs should present price-change plans.
Jablonski reported a marked hostility toward the West and a growing outcry against " absentee landlordism " of the MOCs, which at the time controlled all oil operations within the exporting countries and wielded enormous political influence. The knock-on impacts have been felt in almost all industries and in all countries across the world.
And, with energy central to each and every one of us, it is critical that all stakeholders work together for market stability. This is vital for the effective and efficient functioning of the global energy market.OPEC agrees to cut oil production despite US pressure
In the global oil market, while demand for oil is clearly set to grow in the coming years, a number of factors that could have both medium- and long-term impacts on supply exist. This includes the policies of a number of consuming countries that offer an unclear picture of their impact on future oil consumption levels and overall energy demand.
There is a need to provide clearer policies that are reliable, predictable and not discriminatory. Market stability is essential for both producers and consumers. In addition, there is the need for a better understanding of such matters as the effects of excessive market volatility, the role of speculation, the future requirements for human resources as well as the impact of climate change and of mitigation policies and measures.
We should also never forget that it is a world in which energy poverty continues to blight the lives of billions of people. It is an issue that needs the urgent and critical attention of world leaders.
To help meet some of these challenges and uncertainties facing the global oil market, and the world, in general, we at OPEC believe in continually looking to explore and evolve our dialogue and cooperation with other international organizations.
We recognize the value of strong and mutually-beneficial relationships. In the latest EU-OPEC Ministerial Dialogue that took place in June this year, the two organizations highlighted a number of relevant and topical areas where cooperation could be furthered. This included the need to continue to analyze and discuss the root causes of the recent financial crisis and economic recession; to organize roundtables on the challenges facing offshore oil and gas exploration and production activities and the causes of the skilled workforce shortage in the energy and oil industry; and to develop a study to explore the potential of technological advances in transportation.
In recent years, a number of joint workshops on a variety of topical issues have been held and both Mr.
The Relationship between OPEC and other International Organizations
Tanaka and I have made visits to the headquarters of our respective organizations. OPEC sees the dialogue between the two as an important element in improving the understanding of the concerns of all parties for oil market stability and predictability.
It was founded as a platform that helps informal dialogue between producers and consumers and OPEC continues to support the IEF in providing this function. This can be seen in the Organization's active participation in the IEF's Joint Oil Data Initiative, set up to enhance the transparency, quality, timeliness and flows of oil market data.
We remain committed to furthering this project. The Cancun Declaration, which was a result of the initiative begun by Saudi Arabia when it held an ad-hoc energy meeting in Junemaps out a path for a strengthened IEF, specifically through the development of an IEF Charter.
This covers present and future market trends; the functioning and regulation of energy markets; and data. The Organization and its Member Countries have also been, and continue to be, actively involved with many United Nations Organizations.
I think we all appreciate that the climate change negotiations can, at times, feel extremely complex and, on occasion, appear to be never-ending. However, OPEC recognizes the importance of being part of these negotiations and of working with all parties and organizations to develop solutions that safeguard the legitimate interests of all parties.
In this regard, I am sure all stakeholders agree that any future agreement should be balanced, fair and equitable.
It needs to take into account the past, present and future; the fulfilling of current commitments and obligations; address the net emissions of all greenhouse gases; use all available cost effective abatement options and technologies, including cleaner fossil fuel technologies, such as carbon capture and storage; and remain focused on the priority of sustainable development, particularly in regard to those least able to help themselves.
We also hope to expand our dialogue with other international organizations, as well as countries, such as India and Brazil.