UNCTAD Secretary-General's
High-Level Multi-Stakeholder Dialogue on Commodities in the context of UNCTAD XII
28-29 January 2008
Oil & Gas
Key Trade and Development Issues: an OPEC Perspective
By
Mr. Francis Perrin
Editorial manager, Arab Oil & Gas
Arab Petroleum Research Centre (Paris)
The views expressed are those of the author and do not necessarily reflect the views of UNCTAD

UNCTAD Secretary General’s High Level Multi-Stakeholders
Dialogue on Commodities
Geneva, 28-29 January 2008
By Francis PERRIN
Editorial manager
Arab Oil & Gas
Arab Petroleum Research Center (Paris)

OPEC – The Fundamentals
OPEC: 13 developing countries
Five founding members (1960): Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela
Plus Qatar (1961), Indonesia, Libya, United Arab Emirates, Algeria,
Nigeria, Ecuador and Angola (2007)
Their economies are dependent on oil (and gas) and, then, on oil prices
OPEC objectives include the stabilisation of the oil market in order to obtain oil prices which are fair and reasonable for producers and consumers. Producers must be able to get a reasonable rate of return on their investments

OPEC Objectives according to its Statute
The principal aim of OPEC shall be the coordination and unification of the petroleum policies of member countries and the determination of the best means for safeguarding their interests, individually and collectively.
Ensuring the stabilisation of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations
Due regard shall be given at all times to the interests of producing nations and to the necessity of securing a steady income to producing countries; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on their capital to those investing in the petroleum industry
Development is not among the direct goals of OPEC. Protection of the interests of its member countries, which are developing countries and whose development is strongly linked to oil revenues and oil prices. But OPEC stresses that it also takes into account the needs of all consuming countries

More Recent Commitments
Commitments to conserve, efficiently manage and prolong the exploitation of our exhaustible resources in order to promote the sustainable development and the welfare of our future generations
Commitment to develop our countries and raise the living standards of our peoples
Contribution to global market stability and economic prosperity
On the basis of these commitments OPEC is putting the emphasis on the following three themes (Riyad
Summit, 17-18 November 2007):
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Stability of global energy markets
Energy for sustainable development
Energy and environment
Leading role of OPEC in meeting growing energy needs, including those of developing countries
Petroleum market stability is essential to our economic and social development
Investments to increase upstream and downstream capacities in member countries
Energy is essential to poverty eradication, sustainable development and the achievement of the
Millenium Development Goals. Access to reliable, affordable, economically viable, socially acceptable and environmentally sound energy services
Importance of the Doha Round. More generally necessity of transparent, non-discriminatory and predictable trade, fiscal, environmental and energy policies and respect for the sovereignty of states over their natural resources

OPEC and Developing Countries
Interests of fellow developing countries are fully taken into account in our petroleum production and investment decisions
Development assistance programs. OPEC Fund for International Development since 1975 and bilateral assistance to developing countries
Developed countries must facilitate access of developing countries to modern technologies

OPEC on the Defensive
The challenge of climate change
The challenge of high oil prices
Climate change: a fair agreement is necessary; importance of technology; sustainable development has three pillars, not only one; policies and measures must take into account the impact on developing countries including those which are heavily dependent on fossil fuels; carbon capture and storage. Voluntary initiatives by some OPEC countries.
High oil prices: it does not reflect a shortage of crude oil; good oil demand and supply balance; factors beyond OPEC’s reach such as speculation, political tensions throughout the world and bottlenecks in the refining system in developed countries. To put more crude oil on the market would not change the present situation. OPEC must stick to the fundamentals of the oil markets.
Is OPEC’s argumentation totally convincing? Will the organisation be able to maintain its present positions?