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Special Edition OPEC 60 years and beyond: A story of courage, cooperation and commitment the OPEC MOMRDownload App free of charge! • Essential information on the oil market • 100+ interactive articles and tables detailing crude price movements, oil futures, prices and much more • Analysis of the world economy, world oil supply and demand • Compare data interactively and maximize information extraction Organization of the Petroleum Exporting Countries 13 May 2020 Feature article: Non-OPEC oil supply development Oil market highlights i Feature article iii Crude oil price movements 1 Commodity markets 7 World economy 10 World oil demand 24 World oil supply 32 Product markets and refinery operations 47 Tanker market 53 Crude and refined products trade 56 Commercial stock movements 61 Balance of supply and demand 66 A star is born n the heart of the Middle East in the land of ancient Mesopotamia, and achievements, aided by a clear Statute that all Members respect and with two great rivers spanning its length — the Euphrates and Tigris understand. It’s mission has remained remarkably the same over the I — lies Iraq. By these two waters, the earliest civilization was born. decades: “to coordinate and unify the petroleum policies of its Member What better place for a new idea to take root then near historic Babylon, Countries and ensure the stabilization of oil markets in order to secure in modern-day Baghdad? an efficient, economic and regular supply of petroleum to consumers, a Commentary From this seed of an idea, planted in the fertile soil of the Founding steady income to producers and a fair return on capital for those invest- Fathers’ minds and watered by the desire to have dignity and control ing in the petroleum industry.” over their own natural resources, OPEC grew. There was no fanfare, no Through six decades, the Organization’s foundations have grown media. Not even, at first, the clear desire to form an Organization. strong. It has built a cache of institutional knowledge that it can draw But that 14 September day in 1960 has cemented a place in history. upon to more quickly and effectively manage crises and volatility The formation of OPEC was another sign that the world was changing and than ever before. The latest success story has been the ‘Declaration of countries were taking back their sovereign rights. This seminal event was Cooperation’ (DoC), formed in December 2016 in reaction to the then- known as the historic ‘Baghdad Conference’. worst market crash that had faced the industry, and the subsequent The five Founding Fathers of OPEC, Dr Fuad Rouhani of Iran; Dr Tala’at ‘Charter of Cooperation’. al-Shaibani of Iraq; Ahmed Sayed Omar of Kuwait; Abdullah al-Tariki of OPEC’s astute capabilities have never been displayed more clearly Saudi Arabia; and Juan Pablo Pérez Alfonzo of Venezuela; gathered to- than during the recent COVID-19 crisis, which saw oil demand plunge gether within the hallowed walls of Al-Shaab Hall in Baghdad, to bring at one point by around 30 per cent, economies take an unprecedented this Organization into the world. battering, unemployment rise to Depression-era highs, and health care They were men of different backgrounds, goals and views, but they systems become overwhelmed. saw the need to cooperate to form an Organization. Pérez Alfonzo said In all the chaos and fear, DoC members calmly and coolly examined after the meeting: “We are now united. We are making history.” the oil market and made tremendous sacrifices in the form of unparal- Philosopher and poet, Ralph Waldo Emerson, would have agreed. He leled production adjustments. Their ability to act quickly and decisively said: “Do not follow where the path may lead. Go instead where there is — based on nearly four years of DoC experience — prevented a complete no path and leave a trail.” meltdown of the market and provided a platform for recovery. The groundwork had already been laid with a Gentlemen’s Agreement We at OPEC thought this year would offer a time to reflect on our signed the previous year in Cairo at the Maadi Yacht Club on the sidelines six decades of experience and lay the foundation for an even more suc- of the First Arab Oil Congress. A meeting between Tariki and Alfonzo, en- cessful future. We have indeed been doing this, but with sudden ur- gineered by renowned journalist Wanda Jablonski, brought together these gency, as the lessons learned in the past have also guided us through two strong personalities, each frustrated with international oil company this difficult time. dominance over his country’s valuable resources. The rest, as they say, Despite the plethora of very great challenges facing the oil industry, is history. we feel great confidence. Today the predominant concern is COVID-19. What chance did this upstart grouping have in the face of the power- But in the bigger picture, there are policy decisions around UN climate ful global oil industry, which was dominated by established industrial change talks, the energy transition, investment, geopolitical strife and powers? It was a truly pioneering effort. much more. The swansong of OPEC has been written many times, and yet it meets Nonetheless, we see great advances, for example in technology every challenge and comes back stronger, rising like the phoenix to fight that will reduce the carbon footprint of the industry, such as carbon another battle. capture utilization and storage. The entire production chain has be- Over time, this upstart Organization began to make its mark and come more efficient than ever before, as have vehicles and transpor- embarked enthusiastically on a momentous voyage, clocking milestone tation in general. after milestone. Oil will constitute a big part of the energy transition — our mature In the intervening years, it has been an unforgettable journey; a story industry has so much experience and finesse to offer the energy world. that encapsulates a family of nations, of people and populations, of feel- With a conducive investment climate, the industry can sustain its historic ings and emotions of countries rich in culture and heritage, and of the leadership in technology and innovation to the benefit of humankind. struggle of a group of developing countries to exercise their inalienable At OPEC, we are more prepared than ever, with tools that we did not right to permanent sovereignty over their natural resources in the inter- have in the past to help us navigate choppy waters. With oil still expected est of their national development. to be the main source of energy in 2040, we believe that the industry’s Inclusive dialogue has been a main ingredient in OPEC’s success — and OPEC’s — best days are yet to come. Foreword 5 Message from the Secretary General Remarks 6 A message from the Conference President Reflections 8 Algeria: Strongly committed OPEC Member since 1969 10 Home to the dawn of a new era 14 Interview with Abdullah Ismail: OPEC plays ‘a key role’ for its Member Countries 16 The understated hero of OPEC: Wanda Jablonski Contents 20 OPEC today: Heads of Delegation 5 22 Equatorial Guinea gains from OPEC’s crucial role in market stability and dialogue 24 IR Iran: OPEC’s ‘brilliant history’ and the necessity of continued cooperation 26 IR Iran’s oil industry is seeing dynamic and innovative movement 28 Iraq: Proud of its role as the birthplace of OPEC 30 The development of Iraq’s oil industry Kuwait plays leading role in OPEC 32 Kuwait oil industry developments 36 HRH Prince Abdul Aziz Bin Salman Al Saud: A key leader in times of uncertainty 38 Suhail Mohamed Al Mazrouei: Influential contributor to OPEC and the DoC 40 Azerbaijan’s Minister of Energy emphasizes the importance of cooperation 42 Changing with the times: OPEC and Vienna 44 OPEC at 60: Anniversary felicitations 46 A 60-year legacy of success 48 Professor Dr Mana Saeed Al Otaiba 50 The OPEC Fund: Pride in our heritage, fervent about our future 52 Dr Omar Farouk Ibrahim 54 Abdalla Salem El-Badri 56 Dr Purnomo Yusgiantoro 57 Dr Subroto 58 OPEC and its growing role in world affairs 60 Dr Ramzi Salman 62 Saadallah Al Fathi 64 Dr Manouchehr Takin 66 OPEC 60 years and beyond: A story of courage, cooperation and commitment 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, by IR Special Edition Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Its objective Helferstorferstraße 17 — to coordinate and unify petroleum policies among its 1010 Vienna Member Countries, in order to secure a steady income to Austria the producing countries; an efficient, economic and regular Telephone: +43 1 211 12/0 supply of petroleum to consuming nations; and a fair return on OPEC bulletin OPEC Telefax: +43 1 216 4320 capital to those investing in the petroleum industry. Today, the Organization comprises 14 Members: Libya joined in 1962; OPEC 60 years and beyond: Contact: Editor-in-Chief, OPEC Bulletin A story of courage, cooperation United Arab Emirates (Abu Dhabi, 1967); Algeria (1969); and commitment Fax: +43 1 211 12/5081 Nigeria (1971); Angola (2007); Equatorial Guinea (2017). E-mail: [email protected] Ecuador joined OPEC in 1973, suspended its Membership Cover Website: www.opec.org in 1992, rejoined in 2007, and suspended its Membership This month’s cover reflects the 60th again on December 31, 2019. Qatar joined in 1961 and left Anniversary of OPEC on September on December 31, 2018. Indonesia joined in 1962, suspended 14, 2020. Website: www.opec.org its Membership on December 31, 2008, reactivated it on Visit the OPEC website for the latest news and January 1, 2016, but suspended its Membership again on information about the Organization, and for back December 31, 2016.

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