OPEC Petroleum
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OPEC th International Seminar Petroleum: An Engine for Global Development 3–4 June 2015 Hofburg Palace Vienna, Austria Contact: 50 +44 7818 598178 www.opecseminar.org [email protected] OPEC International Seminar: Advocating oil market dialogue Commentary On June 3, 2015, Austria’s famous Hofburg Palace will once again sessions which will cover a range of topical subjects that will in- open its doors to OPEC’s International Seminar. The stately building, clude global energy outlooks, oil market stability, production ca- which dates back to the 13th century, will host what promises to be pacity and investment, technology and the environment, and pros- two days of intense and lively discussion on the global oil sector. It pects for the world economy. is a striking and most fitting venue. As the former imperial residence Clearly, with so much uncertainty surrounding the interna- of the Habsburg dynasty, rulers of the Austro-Hungarian Empire, tional oil market today, high-level international energy fora such the Hofburg has been home to some of the most powerful people as the OPEC Seminar are essential for addressing the main issues in European and Austrian history. Today, part of the Palace forms and helping overcome the many challenges that exist. Striving for the official residence and workplace of the President of Austria. oil market equilibrium and limiting harmful price volatility have Throughout the annual calendar, the Hofburg also stages over been central to OPEC’s cause since the Organization’s formation 300 events — events, such as the OPEC Seminar. This will be the in 1960. And this overriding commitment to stability is why the fourth time the Organization, which has had its Headquarters in the Organization and its Member Countries have made repeated calls Austrian capital since 1965, has chosen to convene its International for cooperation among the principle energy industry stakeholders. Seminar in the premises’ palatial conference centre, taking advan- OPEC remains convinced that only through established and regular tage of its unique and congenial atmosphere. Indeed, a prestige dialogue can a better understanding of the market’s complex inner setting for an important event. workings be reached and the requirements of its principle players Of course, it is easy to draw parallels between the two. Both identified. the Palace and OPEC are steeped in history, with many eventful There is tentative optimism right now that the global economy, years behind them — and surely many more to come. They are also which drives petroleum demand, is moving in the right direction, both important institutions in Austria and in their own particular albeit slowly. The situation is still fragile so it is important that this ways contribute greatly to the international standing of the coun- marginal improvement is carefully nurtured. And since everyone try, whose capital is regularly ranked as the top city in the world benefits from a strong economy, then it follows suit that everyone for ‘livability’. has a part to play in its well-being, including those attached to the Customarily, the OPEC International Seminar offers decision- petroleum sector. makers, experts and analysts the opportunity to pinpoint and ex- The OPEC International Seminar is just one of the various ve- amine the challenges facing the oil industry now and in the years hicles by which the oil sector’s main stakeholders can congregate ahead. High-ranking delegates typically include OPEC and non-OPEC to discuss the market and determine the best way forward for the oil and energy ministers, heads of major oil companies, interna- future. Another significant undertaking, which has made great tional organizations and energy institutions, captains of industry, strides over the years, is the International Energy Forum (IEF), as well as renowned academics and, of course, the international which brings producers and consumers together. Under such um- media. brella initiatives and in openly discussing the industry’s most im- And after what has been a difficult 12 months for the majority portant issues, the various parties involved — the producers, the of stakeholders associated with the international oil market, there consumers, the oil companies and the investors — are not only able will be a great deal for the Seminar’s 700 or so participants to dis- to narrow their differences, but importantly strive to pull together cuss and digest. … in the same direction. Over the two days, participants will hear from some 30 promi- It might be a big ask of some stakeholders who have grown nent speakers, who will cover all aspects of the global petroleum used to going it alone — but such action would surely make all the sector and related issues. The Seminar has been divided into five difference to oil’s future welfare. Contents 6 20 30 Forum 4 Clear projection of demand essential for global oil producers — El-Badri 6 th OPEC Seminar 6 Vienna’s Hofburg again sets stage for OPEC International Seminar Oil and Gas Show 20 Iranian Oil and Gas Exhibition goes from strength to strength Gas Flaring 30 Turning gas into cash 38 Bringing power to the people Country Profile 40 Trinidad and Tobago — from oil barrels to steel pan music 46 A rich history and a diverse people Publishers OPEC Membership and aims OPEC OPEC is a permanent, intergovernmental Organization, Organization of the Petroleum Exporting Countries established in Baghdad, on September 10–14, 1960, Helferstorferstraße 17 by IR Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. 1010 Vienna Its objective — to coordinate and unify petroleum Austria policies among its Member Countries, in order to Telephone: +43 1 211 12/0 secure a steady income to the producing countries; an OPEC bulletin OPEC Telefax: +43 1 216 4320 efficient, economic and regular supply of petroleum Contact: The Editor-in-Chief, OPEC Bulletin to consuming nations; and a fair return on capital to Fax: +43 1 211 12/5081 those investing in the petroleum industry. Today, the E-mail: [email protected] Organization comprises 12 Members: Qatar joined Cover Website: www.opec.org in 1961; Libya (1962); United Arab Emirates (Abu This month’s cover shows the historical Hofburg Dhabi, 1967); Algeria (1969); Nigeria (1971); Angola Palace in Vienna, Austria, host to the 6th OPEC International Seminar (see Feature on page 6). Website: www.opec.org (2007). Ecuador joined OPEC in 1973, suspended its Image courtesy Shutterstock. Visit the OPEC website for the latest news and infor- Membership in 1992, and rejoined in 2007. Gabon mation about the Organization and back issues of the joined in 1975 and left in 1995. Indonesia joined in OPEC Bulletin which are also available free of charge 1962 and suspended its Membership on December Vol XLVI, No 4, May 2015, ISSN 0474—6279 in PDF format. 31, 2008. Shutterstock Shutterstock 40 54 Appointment 50 New Algerian Energy Minister appointed Secretary General’s Diary 51 Visitors to the OPEC Secretary General Briefings 52 Students at the OPEC Secretariat 54 Outreach — Reaching out to make a difference Vacancies 56 Noticeboard 58 Market Review 59 OPEC Publications 65 Secretariat officials Contributions Editorial staff Secretary General The OPEC Bulletin welcomes original contributions on Editor-in-Chief Abdalla Salem El-Badri the technical, financial and environmental aspects Hasan Hafidh of all stages of the energy industry, research reports Editor Director, Research Division Jerry Haylins and project descriptions with supporting illustrations Dr Omar S Abdul-Hamid Associate Editors Head, Energy Studies Department and photographs. James Griffin, Alvino-Mario Fantini, Oswaldo Tapia Maureen MacNeill, Scott Laury Head, Petroleum Studies Department Editorial policy Production The OPEC Bulletin is published by the OPEC Diana Lavnick Dr Hojatollah Ghanimi Fard Secretariat (Public Relations and Information Design & layout General Legal Counsel Carola Bayer and Tara Starnegg Department). The contents do not necessarily reflect Asma Muttawa Photographs (unless otherwise credited) the official views of OPEC nor its Member Countries. Head, Data Services Department Diana Golpashin and Wolfgang Hammer Names and boundaries on any maps should not be Distribution Dr Adedapo Odulaja regarded as authoritative. The OPEC Secretariat shall Mahid Al-Saigh Head, PR & Information Department not be held liable for any losses or damages as a re- Hasan Hafidh sult of reliance on and/or use of the information con- Head, Finance & Human Resources Department tained in the OPEC Bulletin. Editorial material may Jose Luis Mora be freely reproduced (unless copyrighted), crediting Head, Administration & IT Services Department the OPEC Bulletin as the source. A copy to the Editor Indexed and abstracted in PAIS International Abdullah Alakhawand would be appreciated. Printed in Austria by Ueberreuter Print GmbH Clear projection of demand Forum essential for global oil producers — El-Badri A clear projection of energy demand is vital if producers are to meet the future needs of the consumers, particularly in view of the fact that expensive investment is required to sustain energy supplies, according to Abdalla Salem El-Badri, OPEC Secretary General. In an article for the publication produced for the 41st G7 Summit, to be held in Germany in early June, he points out that the world today is a very different place to the one when representatives of a small group of developing countries sat down together in Baghdad to form OPEC back in 1960. At that time, he says, the world had not yet witnessed the first human spaceflight, air travel was still in its infancy, the Beatles had only just formed, and the use of personal computers and mobile phones was still decades away. “The intervening years have seen much change. This is certainly true for the character and dynamics of the energy sector, with new technologies pushing the frontiers of the industry, more choice and availability of energies, an expansion in global travel and trade, the increased financialization of energy markets, and an evermore interdependent energy world,” he observes.