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Kuwait Ministry of Oil Society of Petroleum Engineers Under the Patronage of the Kuwait Ministry of Oil Society of Petroleum Engineers Kuwait MISHREF @ 13 International K Fair, 20Kuwait Oil & Gas ShowGS and Conference Conference: Register onlineExhibition: at: www.kogs2013.com 7 - 10 October 8 - 10 October SUPPORTED BY: 2013 EXHIBITION WORLDWIDE FAR EAST CONFERENCE ORGANISERS CO-ORDINATORS CO-ORDINATORS ORGANISERS Society of Petroleum Engineers [email protected] [email protected] [email protected] [email protected] BAHRAIN LONDON SINGAPORE DUBAI KOGS13_advert_230x280.indd 1 16/07/2013 17:21 Conference meets amid relative calm in market Commentary The 163rd Meeting of the OPEC Conference own production at a moderate level, he passed in a quiet and effective manner in asked: “Why should we change anything? Vienna with the widely expected outcome. It is working.” The Oil/Energy Ministers reviewed the The outlook for the second half of the oil market outlook for the rest of the year year is a positive one and a welcome con- and beyond, assessed associated matters trast to some of the gloomier forecasts and retained the existing production ceiling we have seen since the financial crisis of of 30 million barrels/day for the Reference 2008. Basket. June’s OPEC Monthly Oil Market Report, Meetings of the Conference are less which appeared 11 days after the meeting, frequent now than at any other time this wrote: “Overall, existing fundamentals por- century. And when they do occur — twice tray a market with ample supply, which is a year — they tend to be shorter. This is further reflected in comfortable crude oil good for order and stability in the market stock levels and improving gasoline inven- and is precisely what is needed at the pre- tories at the start of the driving season.” sent time. But it cautioned: “Uncertainties on both There was, indeed, general satisfac- the demand and supply side have the po- tion with price levels as the Ministers tential to undermine the expected market gathered. After a significant fall in ear- balance in the second half of 2013.” ly-April, the average weekly price of the In short, there is no room for compla- Basket had settled in a comfort zone of cency among groups like OPEC that are around $99–102/barrel in the six weeks committed to market stability. up to May 31 meeting. And it stayed there Nevertheless, as we enter the summer until early July. holiday season — which this year includes Secretary General, Abdalla Salem El- the holy month of Ramadan — there is a Badri, said after the meeting that the relative calm in the market, and we hope Ministers were very happy with the cur- that this will remain the case well into the rent level of oil prices. Moreover, with the future. market well-supplied with oil and OPEC’s We shall do our best to support this. Conference Notes 4 163rd Meeting of the OPEC Conference Ministers exercise caution in sticking to existing oil production ceiling OPEC remains committed to ensuring oil market is well supplied — Al-Arousi (p14) Chavez: “A staunch defender of OPEC and its principles” — Ramirez (p16) Ecuador appoints new Non-Renewable Natural Resources Minister (p18) Kuwaiti Deputy Prime Minister appointed Acting Oil Minister (p19) Contents Webcast interviews (p20) Reception 30 OPEC Ministers visit King Abdullah Election 32 centre for dialogue Iran elects Hassan Rouhani to be new President New Emir 34 Iran and Venezuela: New ddp images Presidents to meet (p33) Reuters Emir of Qatar transfers power to his son Oil & Gas Exhibition 36 Economic sanctions serve to boost Iran’s self- sufficiency campaign UAE Visit 40 Statistics Meeeting UAE Foreign Minister visits 42 Austria to strengthen OPEC Secretariat hosts th bilateral relations 12 Annual Statistical Meeting: Improved data submissions and NOCs Congress 46 timeliness necessary The emergence of the ‘international’ national oil company 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 reflects the power potential offered by solar energy (see Saudi Arabia feature Dhabi, 1967); Algeria (1969); Nigeria (1971); Angola on p82). Web site: www.opec.org (2007). Ecuador joined OPEC in 1973, suspended its Image courtesy Shutterstock. Visit the OPEC Web site 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 XLIV, No 5, June/July 2013, ISSN 0474—6279 in PDF format. 31, 2008. Gas Forum 50 Nigerian Gas 54 Reuters Kremlin hosts Second Summit of Nigeria outlines Gas Exporting Countries Forum plans for GECF playing important role in burgeoning gas global gas market — El-Badri (p53) Shell sector Shale Oil 58 Shale oil revolution: No threat to oil producers Focus on Africa 66 Profile 72 Can the discovery of oil aid nation-building in OMV Shutterstock Somalia? Fifty-seven years and counting — OMV driving for new success Newsline 78 OPEC to continue as important, reliable player in oil market — IEA head Algeria to launch first maize production, open up farming sector (p80) Qatar looking to boost oil output capability through contract switch (p81) Secretary General’s Diary 88 Saudi Arabia aiming to become world leader in solar power (p82) Briefings 92 UAE starts construction of second nuclear power plant (p84) Vacancies 94 Venezuela steps up production plans to meet increasing Asian oil demand (p85) Oil, gas investment to hit record after slump in renewables spending (p86) Arts & Life 96 Non-OECD oil demand outstrips OECD figure for first time ever (p87) Chinua Achebe — Tributes pour in for late renowned ddp images Nigerian author OPEC Fund News 100 OFID Ministerial Council reappoints Al-Herbish to new five-year term Noticeboard 104 OFID’s 2012 performance highlights growing focus on alleviating energy poverty (p102) Market Review 105 Young activist wins OFID’s 2013 Annual Award (p103) OPEC Publications 113 Secretariat officials Contributions Editorial staff The OPEC Bulletin welcomes original contributions on Editor-in-Chief/Editorial Coordinator Secretary General the technical, financial and environmental aspects Ulunma Angela Agoawike Abdalla Salem El-Badri of all stages of the energy industry, research reports Editor Jerry Haylins Director, Research Division and project descriptions with supporting illustrations Associate Editors Dr Omar S Abdul-Hamid and photographs. Keith Aylward-Marchant, James Griffin, Head, Finance & Human Resources Department Alvino-Mario Fantini, Maureen MacNeill, In charge of Administration and IT Services Editorial policy Scott Laury Department The OPEC Bulletin is published by the OPEC Production Alejandro Rodriguez Secretariat (Public Relations and Information Diana Lavnick Head, Energy Studies Department Department). The contents do not necessarily reflect Design & Layout Elfi Plakolm Oswaldo Tapia the official views of OPEC nor its Member Countries. Photographs (unless otherwise credited) Head, Petroleum Studies Department Names and boundaries on any maps should not be Diana Golpashin and Wolfgang Hammer Dr Hojatollah Ghanimi Fard regarded as authoritative. The OPEC Secretariat shall Distribution Head, PR & Information Department not be held liable for any losses or damages as a re- Mahid Al-Saigh Ulunma Angela Agoawike sult of reliance on and/or use of the information con- General Legal Counsel tained in the OPEC Bulletin. Editorial material may Asma Muttawa be freely reproduced (unless copyrighted), crediting Head, Data Services Department the OPEC Bulletin as the source. A copy to the Editor Indexed and abstracted in PAIS International Dr Adedapo Odulaja would be appreciated. Printed in Austria by Ueberreuter Print GmbH Conference Notes Conference 163rd Meeting of the OPEC Conference convenes in Vienna Ministers exercise caution in sticking to existing oil production ceiling OPEC’s Oil and Energy Ministers, at their Meeting in Vienna at the end of May, decided to err on the side of caution by again retaining the Organization’s current pro- duction ceiling of 30 million barrels/day of crude oil for the rest of this year. In what proved to be a widely expected outcome of the 163rd Meeting of the OPEC Conference in the Austrian OPEC bulletin 6–7/13 bulletin OPEC 4 Dr Youcef Yousfi (c), Algeria’s Minister of Energy and Mines; Mohamed Benhocine (l), capital, Ministers from the 12-Member Organization Algeria’s Ambassador to Austria; and Ms Yamina Hamdi (r), UAE’s National Representative to OPEC. expressed concern that there could be a further easing of market fundamentals in the second half of the year. They decided that despite forecasts of seasonally higher demand in the second half of 2013, taking all Left: Dr Abdel Bari Ali Al-Arousi (c), Libya’s Minister of Oil & Gas and Alternate President of developments into account, it would be wise to maintain the OPEC Conference; Abdalla Salem El-Badri (r), OPEC Secretary General; and Yasser Mufti the status quo and adhere to the Organization’s existing (l), Saudi Arabia’s Governor for OPEC, and Chairman of the OPEC Board of Governors.
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