He knows there’s a well out there. So do we. www.omv.com Why are nine out of ten appraisal wells drilled by OMV Exploration & Production GmbH successful? Just as the camel finds water where others see only sand, we find oil where others can‘t. But it‘s not only us to use the most advanced technology: our colleagues from OMV Gas & Power GmbH do so too when transporting the gas we have produced. OMV is not only a pioneer in the Nabucco Gas Pipeline project, but is also fully committed to being a pro- gressive player in the LNG business. OMV places its competence and knowhow into action for a secured energy supply. Move & More. Kamel_230x280mm.indd 1 13.05.2009 16:07:41 Uhr Opening message to the special 50th Anniversary issue of the OPEC Bulletin by Abdalla Salem El-Badri, From the Secretary General OPEC Secretary General The Fourteenth of September 2010 is a very special day for OPEC. This sees the Organization celebrate its 50th anniversary. Few would have believed half a century ago that the Organization would have risen to the heights it has today in the global energy arena. This is be- cause OPEC’s birth in Baghdad was a low-key event involving just its five Founder Members in a very different world to that of today. The oil industry was dominated by the major oil companies and this was reflected in its structure and its behaviour. The industry’s prime pur- pose in the previous 15 years had been to fuel the post-Second World War reconstruction of the developed countries in the then-colonial world with all its inherent injustices — and then to maintain the momentum of this unjust situation without due regard to the interests of the poor developing countries from which most of the essential crude oil was coming. In the context of that time, it was therefore a heroic act by the Founder Members to come together in the Iraqi capital 50 years ago and decide that enough was enough. They could no longer allow the lifeblood of their economies to be drained. At first, in the 1960s, little was heard about OPEC, as its Membership grew and it engaged in endless rounds of discussions with the dominant international oil companies, in order to acquire a greater say in how their indigenous oil re- sources were exploited and hence their national destinies mapped out. At the time that this was happening, fundamental changes were occurring across the world, and, in the context of OPEC’s evolution, many developing countries were acquiring independence. And so the time was ripe for OPEC and its Member Countries to take some profound steps in asserting their sovereign rights to the exploitation of their indigenous natural resources, in the interests of their domestic economic and social development and for the benefit of their peoples. In the early 1970s, this saw a wave of oil industry nationalizations, as well as these countries gaining a major say in the pricing of their crude oil on world markets. Since then, OPEC and its Member Countries have gone from strength to strength. While OPEC has focused much of its attention on the welfare, development and growth of the oil industry itself — together with its commitment to secure, steady supply with reasonable prices to consumers and fair returns to investors — it has also broad- ened out the scope of its activities to the energy sector at large and, indeed, much further afield than that. Here, I refer to its championing of issues affecting mankind as a whole, most notably sustainable development, the eradication of energy poverty and care for the environment. In 50 years, OPEC has become a notable player on the world stage. This has not just been because of the contributions of its Member Countries to international oil supply. But it has also been due to OPEC’s progress and achievements being envisaged as a beacon of hope to other developing countries. In short, OPEC has shown that it is possible for well-intentioned, but heavily exploited developing countries to stand up for themselves, develop their econo- mies, defend their sovereign interests and make a significant contribution to the global community in a constructive and meaningful way. Of course, the world today is a much more integrated, interconnected and interdependent globalized arena than it was 50 years ago. But OPEC’s establishment, growth, assertiveness and expanding out- reach have served a purpose in demonstrating to other developing coun- tries just what can be achieved through perseverance and steadfastness, when the cause is a just one. Therefore, as OPEC celebrates its 50th anniversary, it does so with a feeling of achievement and satisfaction, together with the firm intention of remaining true to its principles well into the future, to the benefit of its own Member Countries’ national development, international oil supply, world economic growth, poverty eradication and the global community at large. Finally, no occasion like this would be complete without a full appre- ciation of the efforts of all those who have worked so hard over the past 50 From the Secretary General years to make OPEC the success it has become. These include generations of Heads of State and Government, Ministers, Governors and other high- level experts from outside the Secretariat and, from within the Secretariat, Secretary Generals, Management and Staff of every relevant discipline, enriched by their broad multicultural spread. Inherent qualities have in- cluded courage, vision, enterprise, ambition, commitment, perseverance and sacrifice, to cope with the many ups and downs experienced by the Organization and its Member Countries, as these much-valued individuals have sought, day in, day out, to pursue OPEC’s noble objectives. I am sure that I am speaking on behalf of all my distinguished predeces- sors as Secretary General when I express a profound and heartfelt “thank you” to all those who have contributed to OPEC’s success during this time and have utilized all these qualities to the full in the interests of the growth and development of the Organization. This gratitude extends to the Republic of Austria and the City of Vienna, which have been warm and generous hosts to the Secretariat since we moved to this grand, historic city in 1965. Our new purpose- built premises provide the ideal base from which to meet the many chal- lenges we shall face as we enter our second 50 years in a confident and determined manner. Let us all now keep our sights fixed firmly on the future. History of OPEC 6 Getting to know OPEC after 50 years How it all began (p7) A brief history (p8) OPEC timeline (p10) OPEC’s objectives (p12) OPEC’s achievements (p14) OPEC Membership (p18) C o n t e n t s OPEC Secretariat addresses (p18) Executive View 20 El-Badri Founder Members in Focus 28 confident about OPEC’s future “for decades to come” OPEC’s role in the oil age will remain decisive — Iraq OPEC earns respect as key player in supplying world’s energy needs — Kuwait (p30) OPEC: Making a difference to the petroleum market — Saudi Arabia (p32) Venezuela: an undeniable factor of unity within OPEC — Venezuela (p34) Other Member Countries OPEC more relevant than ever to global community — Algeria (p37) OPEC will need to adapt to the changing face of oil — Nigeria (p39) OPEC will remain important for many years to come — Qatar (p41) Interviews 44 OPEC @ 50: OPEC’s major achieve- Austria happy, proud The journey of a ment is the way it has to be OPEC’s longstanding lifetime fulfilled its mandate host — Dr Alirio Parra — Suleiman Al-Herbish (p52) — Dr Michael Häupl (p58) Publishers OPEC Membership and aims OPEC OPEC is a permanent, intergovernmental Organization of the Petroleum Exporting Countries Organization, established in Baghdad, on September Helferstorferstraße 17 10–14, 1960, by IR Iran, Iraq, Kuwait, Saudi Arabia 1010 Vienna, Austria and Venezuela. Its objective — to coordinate Telephone: +43 1 211 12/0 and unify petroleum policies among its Member Telefax: +43 1 216 4320 Countries, in order to secure fair and stable prices OPEC bulletin Contact: The Editor-in-Chief, OPEC Bulletin for petroleum producers; an efficient, economic and Fax: +43 1 211 12/5081 regular supply of petroleum to consuming nations; E-mail: [email protected] and a fair return on capital to those investing in the industry. The Organization comprises 12 Members: Cover Web site: www.opec.org Qatar joined in 1961; SP Libyan AJ (1962); United This month’s cover shows the design used by the Visit the OPEC Web site for the latest news and infor- Austrian Postal Authority for the stamp its philatelic Arab Emirates (Abu Dhabi, 1967); Algeria (1969); section is issuing to mark OPEC’s 50th Anniversary. mation about the Organization and back issues of the Nigeria (1971); Angola (2007). Ecuador joined OPEC Design: Elfi Plakolm. OPEC Bulletin which are also available free of charge in 1973, suspended its Membership in 1992, and in PDF format. rejoined in 2007. Gabon joined in 1975 and left in 1995. Indonesia joined in 1962 and suspended its Vol XLI, No 7, September 2010, ISSN 0474–6279 Hard copy subscription: $70/year Membership on December 31, 2008. Tributes 60 Happy 50th birthday OPEC! Goodwill messages wish continued success for a unique Organization Anniversary Exhibition 68 Reflections 80 Cultural exhibition will be OPEC Anniversary ‘event of the year’ Profiles of OPEC Member Countries at the Anniversary Exhibition (p73) Profiles of other exhibitors (p79) The perfect partnership — Sylvia Smetiprach Spotlight 82 Hungry for results Newsline 88 — Kanayo Nwanze, IFAD President Macondo rig tragedy will have repercussions