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Two seminal events linking OPEC’s

Commentar y
successful past with its bright future

S
ince the publication of the last edition of the nies, academics, specialist media and other energy
OPEC Bulletin, there have been several events experts.
of immense significance for the Organization, As the parameters in which the oil and energy
namely, the 8th OPEC International Seminar and the industry operate have evolved, so too have OPEC sem-
celebration of the Organization’s 60th Anniversary, at a inars, embracing areas such as global finance, sus-
moving ceremony that took place at the site of OPEC’s tainable development and the environment.
founding, Al-Shaab Hall in Baghdad. The 8th OPEC International Seminar, held on 5 and
The celebration of OPEC’s 60th Anniversary took 6 July 2023 in Vienna, broke records with more than
place on 16 June 2023. The event was originally 1,000 delegates coming together for critical and con-
planned for 2020; however, it was postponed mul- structive discussions on issues that globally matter,
tiple times due to COVID-19. In attendance were offi- including energy security, climate change and the
cials and representatives of OPEC Member Countries energy transitions. It was attended by 17 ministers
and some non-OPEC countries, along with other dig- from producing and consuming countries, including
nitaries. It featured a full programme of festivities, Heads of Delegation of OPEC Member Countries; 18
including various cultural activities. CEOs of energy firms; 13 heads of international organi-
Whilst at Al-Shaab Hall, the Heads of Delegation zations; and 12 media partners, along with numerous
also signed a document, entitled ‘The journey from journalists and analysts from across the globe.
Baghdad — 63 years of progress.’ It recalls the his- The theme of the 8th OPEC International Seminar
toric day of 14 September 1960, and reaffirms the was ‘Towards a Sustainable and Inclusive Energy
Organization’s core principles with a commitment Transition.’ In his opening remarks at the Seminar, the
to safeguarding legitimate national interests and OPEC Secretary General, Haitham Al Ghais, explained
helping ensure order and stability in the global oil the fundamental concepts behind the themes. “The
market. concept of ‘sustainability’ is essentially about bal-
While 63 years may have elapsed between the ance. It relates to how we fulfil the needs of current
founding of OPEC and the convening of the 8th OPEC generations without compromising the needs of
International Seminar, the same spirit and principles future generations; while ensuring a balance between
that guided the founding fathers in Baghdad were the three pillars of sustainability: economic viability,
manifest in the most recent edition of the Seminar: environmental protection and social equity,” he said.
namely, a commitment to dialogue, international “‘Inclusivity’ relates to ensuring all voices are
cooperation and a steadfast focus on safeguarding heard in discussions on energy transitions; devel-
the interests of both producers and consumers. oping and developed countries, and producers and
OPEC’s International Seminar is regarded as one consumers. It means adhering to the principle of
of the premier events on the global energy calendar. common but differentiated responsibilities. It means
Although they have come in various forms over the there is no ‘one-size-fits all’ solution to the climate
decades, the high-profile gatherings have been uni- challenge, instead, there are multiple pathways to
fied in their breadth of outreach. Seminar partici- reach the goals of the Paris Agreement,” he added.
pants are a proverbial who’s who of the ‘great and It proved to be a busy few weeks for the Organization,
the good’ in the oil and energy industry, including but these were replete with accomplishments and sig-
Ministers from OPEC’s Member Countries and other nificant achievements. What was palpably central to
oil-producing and oil-consuming nations, as well all of it was one crucial word: cooperation. It is a prin-
as heads of intergovernmental organizations, chief ciple upon which the Organization was founded and
executives of national and international oil compa- will guide its activities in the years to come.
 Contents

4 82
8 th OPEC International Seminar 4 ‘Towards a sustainable and inclusive energy transition’
6 Opening ceremony
12 Special introductory session
14 Ministerial session 1: Market stability and energy security
18 High-level roundtable 1: Energy sustainability trilemma
22 Ministerial session 2: Investments, finance and inclusive petroleum growth strategies
26 High-level roundtable 2: Energy investment: challenges and opportunities
30 High-level roundtable 3: Technology and innovation for a low emissions future
36 Gala Dinner and Awards Ceremony hosted by the Ministry of Mines and Hydrocarbons,
Equatorial Guinea
42 COP28 President-Designate speaks at OPEC Seminar via video
44 Ministerial session 3: Pathways to just energy transitions
48 High-level roundtable 4: Eradicating energy poverty
52 High-level roundtable 5: The pace of energy transitions and climate change policies
56 Ministerial session 4: Diversifying energy economies
60 High-level roundtable 6: The role of international cooperation in diversifying economies
64 Closing ceremony
66 Students participate at the 8th OPEC International Seminar, gaining new perspectives
70 Sponsors and exhibitors make their mark at the 8th OPEC Seminar
72 OPEC Seminar Interviews: On the sidelines of the Seminar…
OPEC bulletin

80 Impressions from the OPEC Seminar

Anniversary celebration 82 Iraq hosts Anniversary celebration

90 Impressions from the Anniversary celebration

Azerbaijan visit 94 Appointment in Azerbaijan

98 Conversing with future leaders

Publishers OPEC Membership and aims

OPEC OPEC is a permanent, intergovernmental Organization,
established in Baghdad, on 10–14 September 1960,
Organization of the Petroleum Exporting Countries
by IR Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. Its
Helferstorferstraße 17 objective — to coordinate and unify petroleum policies
1010 Vienna among its Member Countries, in order to secure a
Austria steady income to the producing countries; an efficient,
economic and regular supply of petroleum to consuming
Telephone: +43 1 211 12/0
nations; and a fair return on capital to those investing
Telefax: +43 1 216 4320 in the petroleum industry. Today, the Organization
Contact: Editor-in-Chief, OPEC Bulletin comprises 13 Members: Libya joined in 1962; United
Fax: +43 1 211 12/5081 Arab Emirates (Abu Dhabi, 1967); Algeria (1969);
E-mail: prid@opec.org Nigeria (1971); Angola (2007); Equatorial Guinea
(2017). Ecuador joined OPEC in 1973, suspended its
Cover Membership in 1992, rejoined in 2007, and suspended
This month’s cover reflects the 8th OPEC its Membership again on 31 December 2019. Qatar
Seminar, held in Vienna, 5–6 July 2023 joined in 1961 and left on 31 December 2018.
(see story on page 4). Website: www.opec.org Indonesia joined in 1962, suspended its Membership on
Visit the OPEC website for the latest news and 31 December 2008, reactivated it on 1 January 2016, but
suspended its Membership again on 31 December 2016.
information about the Organization, and for back
Gabon joined in 1975 and left in 1995; it reactivated its
issues of the OPEC Bulletin, which are available free Membership on 1 July 2016. The Republic of the Congo
Vol LIV, No 4, July/August 2023, ISSN 0474–6279 of charge in PDF format. joined the Organization on 22 June 2018.
 100 106 110
Shutterstock

Shutterstock
Malaysia visit 100 Malaysian Mission

OPEC & OPEC Fund 104 OPEC and OPEC Fund sign groundbreaking Memorandum of Understanding

Brunei visit 106 OPEC SG visits Brunei Darussalam — the Kingdom of Unexpected Treasures

Nigeria Energy Week 108 22nd Nigeria Energy Week Strategic Conference

ASB Launch 110 OPEC’s Annual Statistical Bulletin launched

G20 114 OPEC SG participates in G20 Energy Ministerial Meeting

OPEC Member Countries 116 Iraq and Saudi Arabia boost ties through energy and power

Secretary General’s Diary 118 Visitors and visits by the Secretary General

Briefings 122 Visits to the OPEC Secretariat

OPEC Fund News 124 “Revolutionary, even for the World Bank”

Noticeboard 126 Oil industry events

Markets 129 The outlook for the oil market in 2024

131 Crude and product price movements

Publications 135 Reading material about OPEC

Secretariat officials Contributions Editorial staff

Secretary General The OPEC Bulletin welcomes original contributions on Chairman of the Editorial Board
Haitham Al Ghais the technical, financial and environmental aspects of Haitham Al Ghais, Secretary General
Director, Research Division all stages of the energy industry, as well as research Editor-in-Chief
Dr Ayed S Al-Qahtani Hasan AlHamadi, Officer-in-Charge,
reports and project descriptions with supporting
Head, Energy Studies Department PR & Information Department
illustrations and photographs. Editor
Dr Abderrezak Benyoucef
Mathew Quinn
Head, Environmental Matters Department Editorial policy Associate Editors
Mohammad Hassani The OPEC Bulletin is published by the OPEC James Griffin, Maureen MacNeill,
Head, Petroleum Studies Department Scott Laury, Richard Murphy, Boris Kudashev
Secretariat (Public Relations and Information
Behrooz Baikalizadeh Contributors
Department). The contents do not necessarily reflect
General Legal Counsel Hind Zaher, Ammar Abdulhafedh
the official views of OPEC or its Member Countries.
Leonardo Sempértegui Vallejo Production
Head, Finance & Human Resources Department
Names and boundaries on any maps should not be Andrea Birnbach
Abdulmonem Allafi regarded as authoritative. Design and layout
Head, Administration & IT Services Department Carola Bayer, Tara Starnegg
Hasan M AlHamadi The OPEC Secretariat shall not be held liable for Photographs (unless otherwise credited)
Officer-in-Charge, PR & Information Department any losses or damages as a result of reliance on Herwig Steiner, Wolfgang Hammer
and/or use of the information contained in the Distribution
Hasan M AlHamadi This product is from

OPEC Bulletin. Editorial material may be freely Mahid Al-Saigh sustainably managed
Head, Data Services Department forests, recycled and
Ms Huda Almwasawy reproduced (unless copyrighted), crediting the OPEC controlled sources.

Head, Office of the Secretary General Bulletin as the source. A copy to the Editor would be Indexed and abstracted in PAIS International PEFC/06-39-22

Shakir Mahmoud A Alrifaiey appreciated. Printed in Austria

4
OPEC bulletin 7–8 /23
OPEC Seminar

Towards a sustainable and

 inclusive energy transition

OPEC bulletin 7–8/23

5
 Opening ceremony

Opening ceremony
OPEC Seminar

Speakers:
Haitham Al Ghais, OPEC Secretary General
Antonio Oburu Ondo, President of the OPEC Conference 2023, Minister
OPEC bulletin 7–8 /23

of Mines and Hydrocarbons, Equatorial Guinea

Moderated by:
John Defterios, Professor of Business, NYU, Abu Dhabi
6 Eithne Treanor, Founder & CEO, ETreanor Media
One of the most tangible manifestations of OPEC’s commitment to dialogue is its eagerly
anticipated International Seminar that is today regarded as one of the premier events on the
global energy calendar. Although they have come in various forms over the decades, the high-
profile gatherings have been unified in their breadth of outreach. Seminar participants are a
proverbial who’s who of the ‘great and the good’ in the oil industry, including Ministers from
OPEC’s Member Countries and other oil-producing and oil-consuming nations, as well as heads
of intergovernmental organizations, chief executives of national and international oil companies,
academics, specialist media representatives and other energy experts.

As the parameters in which the oil and energy industry 3–5 October 1979 — ‘OPEC and future energy
operates have evolved, so too have the OPEC seminars, markets’
embracing areas such as global finance, sustainable 24–26 November 1981 — ‘Energy and development:
development and the environment; unsurprisingly, their options for global strategies’
reputation has grown in stature over the decades, too. An important milestone in the increasing promi-
The first OPEC Seminar was held in Vienna, from 30 nence that environmental issues would play was the
June to 5 July 1969, with the theme, ‘International oil one-off ‘Seminar on the Environment’ from 13 to 15
and the energy policies of the producing and consum- April 1992, held to prepare for the Earth Summit in Rio
ing countries’. An eight-year wait then ensued until de Janeiro in June of that year.
the next one, which turned out to be the first in a mini- A new era began in 2001, with the launch of a new
series, listed as follows: series called the ‘OPEC International Seminar.’ It com-
10–12 October 1977 — ‘The present and the future prises of the following:
role of the national oil companies’ September 2001: The First OPEC International
9–11 October 1978 — ‘Downstream operations in Seminar (as it was then called), ‘OPEC and the global
OPEC Member Countries: prospects and problems’ energy balance: towards a sustainable energy future’.

Antonio Oburu Ondo, President of the Conference 2023, Minister of

Haitham Al Ghais, OPEC Secretary General. Mines and Hydrocarbons, Equatorial Guinea.

OPEC bulletin 7–8/23

7
 Opening ceremony

OPEC Seminar

September 2004: The Second OPEC International The 8th OPEC International Seminar, held from 5 to
Seminar, ‘Petroleum in an interdependent world’. 6 July 2023 in Vienna, broke records, with more than
September 2006: The Third OPEC International 1,000 delegates coming together for critical and con-
Seminar, ‘OPEC in a new energy era: challenges and structive discussions on issues that globally matter,
opportunities’. including energy security, climate change and the
March 2009: The Fourth OPEC International Seminar, energy transitions. It was attended by 17 ministers from
‘Petroleum: future stability and sustainability’. producing and consuming countries, including Heads
June 2012: The Fifth OPEC International Seminar, of Delegation of OPEC Member Countries; 18 CEOs of
‘Petroleum: fuelling prosperity, supporting sustainability’. energy firms; 13 heads of international organizations;
June 2015: The Sixth OPEC International Seminar, and 12 media partners, along with numerous journal-
OPEC bulletin 7–8 /23

‘Petroleum — an engine for global development’. ists and analysts from across the globe.
June 2018: The Seventh OPEC International Seminar, The Seminar began with an innovative video that
‘Petroleum — cooperation for a sustainable future’. showcased the importance of oil to the development

8
 The 8th OPEC International
Seminar saw a distinguished
line-up of participants and
speakers, a proverbial who’s
who in the oil industry.

of civilization, and depicted the key themes that were The SG continued by thanking the Ministers from
due to be discussed over the forthcoming days. OPEC Member Countries and ‘Declaration of Cooperation’
In his opening remarks, OPEC Secretary General (DoC) countries, other Ministers, Ambassadors, digni-
Haitham Al Ghais said, “It is a great honour to welcome taries, moderators, the Seminar sponsors, the heads
you to the 8th OPEC International Seminar. Organizing of international organizations, the chief executives of
an event on this scale is obviously only possible with national and international oil companies, and all the
intense teamwork. I would like to thank everyone who other speakers and panel members. He also paid spe-
has contributed to making this Seminar a reality.” cial tribute to the host country of the OPEC Secretariat,
“My deep gratitude goes to my colleagues at the the Republic of Austria.
OPEC Secretariat, who have worked tirelessly, night and The SG probed the concepts at the heart of the
OPEC bulletin 7–8/23

day, to produce this Seminar. The outcome of your hard theme of the OPEC Seminar, ‘Towards a Sustainable
work is this outstanding programme we have ahead of and Inclusive Energy Transition.’ He stated, “The con-
us.” cept of ‘sustainability’ is essentially about balance. It

9
 Opening ceremony

OPEC Seminar

relates to how we fulfil the needs of current generations who of global oil and energy industry thought leaders. The
without compromising the needs of future generations; insights and wisdom of these leaders will undoubtedly
while ensuring a balance between the three pillars of provide for rich and engaging discussions.”
sustainability: economic viability, environmental pro- The President noted the historic nature of the set-
tection and social equity.” ting. He said, “Holding the event here in the Hofburg
On the topic of ‘inclusivity’, he said, “‘Inclusivity’ Palace also adds to the spectacle. The palatial rooms
relates to ensuring all voices are heard in discussions of this magnificent building have been central to coop-
on energy transitions; developing and developed eration and dialogue over many centuries.
countries; and producers and consumers. It means “It was here where the Congress of Vienna met in
adhering to the principle of common but differenti- 1814 and 1815, a meeting of ambassadors of European
ated responsibilities. It means there is no ‘one-size- states chaired by legendary Austrian statesman Klemens
fits all’ solution to the climate challenge, instead, von Metternich. It is a meeting that many believe created
there are multiple pathways to reach the goals of the long-term stability across Europe.
Paris Agreement.” “I have no doubt that the next two days of the OPEC
In his remarks, the President of the OPEC Conference, International Seminar will add to the long history of this
Antonio Oburu Ondo, the Minister of Mines and palace.”
Hydrocarbons of Equatorial Guinea, stated, “The 2023 He concluded by returning to the theme of the
edition [of the OPEC International Seminar] is truly a pres- Seminar. “The energy reality is that the world cannot
tigious event, with so many ministers from both produc- do without oil. It has been central to our past, is funda-
ing and consuming countries, so many distinguished and mental to our present, and will be pivotal to our future.
high-level speakers, the leaders of tomorrow, and hun- It is a 24/7 commodity and we cannot do without it,”
dreds more delegates from all over the world. It is a who’s he said.
OPEC bulletin 7–8 /23

10
 6
2 5 July 2023

The Seminar
days in numbers ...
July 2023
1,000+
6 delegates
2 5 July 2023
July 2023 6 7
days
2 5 July 2023 1,000+ OPEC Award
July 2023 delegates
days
1,000+ winners
3 Diamond sponsors CEO delegates
7
7 Gold sponsors 18 17 13 heads of
OPEC Award
CEOs ministers international winners 7 8
63 Diamond 9 Silver sponsors
sponsors CEO
organizations OPEC Award p
July 2023
2 Bronze sponsors 18 17 13 heads of
winners
23
7 3 Diamond1,000+
Gold sponsors
sponsors CEOs CEOministers international
9 7 Gold sponsors
Silver sponsors delegates 18 17 organizations
13 heads of 8,000+
CEOs ministers international pictures
2 Bronze sponsors 12
sponsors
9 Silver media partners
organizations 50+ 8,0
7 booths in pic
2 Bronze sponsors
89 journalists OPEC13Award nations
exhibition area
winners
CEO 12 media partners 50+
18 8917 13 heads of
journalists12 media partners 13
booths in nations
CEOs ministers international exhibition area 50+
organizations 13 booths in 8,000+
nations
89 journalists exhibition area
pictures

media partners
Moderators 50+
sts 13 booths in nations
exhibition area
OPEC bulletin 7–8/23

John Defterios Eithne Treanor

Professor of Business, NYU, Abu Dhabi Founder & CEO, ETreanor Media
11
 Special introductory session

Special introductory session

OPEC Seminar

Speaker:
HRH Prince Abdul Aziz Bin Salman, Minister of Energy, Kingdom of
Saudi Arabia

Moderated by:
OPEC bulletin 7–8 /23

Dr Paul Horsnell, Global Head of Commodities, Standard Chartered Plc

12
The ‘Special introductory session’ of the 8th OPEC emanating from a ‘tell me’ type of thing and not a ‘show
International Seminar saw HRH Prince Abdul Aziz Bin me’ type of thing. Unfortunately the ‘show me’ thing
Salman, the Minister of Energy of the Kingdom of Saudi comes a month or two later, but there is a great deal of
Arabia, sit down with Dr Paul Horsnell, the Global Head negativism that is taking everything as a hostage,” he
of Commodities at Standard Chartered Plc for a one- said.
on-one conversation to help set the scene for the com- He believed that the OPEC+ group was doing a great
ing two days. job in aiding stability in the market, and said the “tools
Given that Prince Abdul Aziz is also co-chair of the in our kit are working.”
OPEC and non-OPEC Ministerial Meeting (ONOMM), talk He said, that he was “in my comfort zone that the
quickly turned to the recent production adjustments cohesion that we have, the consensus that we have, and
undertaken by OPEC+. This included those from the 35th the processes that we have created in OPEC+ will enable
ONOMM on 4 June, as well as the additional commit- us to attend to these situations, now, next month, and
ments announced earlier in the week of the Seminar. the month after.
On 3 July, Saudi Arabia extended its voluntary oil He added that the market will not be left “unat-
output adjustment of one million barrels a day (mb/d) tended”, adding, “we will do whatever is necessary,
for another month to include August, Russia adjusted whatever it takes.”
its oil exports by 500,000 b/d in August, and Algeria
adjusted its production by an extra 20,000 b/d in the
same month.
Horsnell elaborated on these adjustments and
asked Prince Abdulaziz on why the decisions had been
taken, the market’s reaction to them, and the challenges
facing OPEC+ looking ahead.
In looking back to the ONOMM on 4 June, Prince
Abdul Aziz highlighted the importance of transparency.
He stated that there were issues that needed attending
to and this had been achieved at the meeting.
In this regard, he underlined the adjustment of crude
oil production for OPEC and non-OPEC participating
countries in the DoC to the end of 2024, and noted a
review of baselines with secondary sources for all par-
ticipating countries, to take better account of current
realities. “I always like the President Reagan line, ‘Trust
but verify,’” he said, stressing the instrumental role of
independent sources in assessing production.
He also highlighted the additional voluntary pro-
duction adjustment of 1 mb/d from Saudi Arabia, now
for July and August, and was keen to point out voluntary
adjustments were nothing new, recalling those in 2020
from a number of countries.
Prince Abdul Aziz stressed that developments ear-
lier that week, particularly alongside “our colleagues
from Russia … were also to mitigate the cynical side of
the speculators.”
Asked about the markets’ muted reaction to the
recent production adjustments, Prince Abdul Aziz called HRH Prince Abdul Aziz Bin Salman, Minister of Energy, Kingdom of Saudi Arabia.
OPEC bulletin 7–8/23

for patience. “You cannot change negativity that is

13
 Ministerial session 1

Ministerial session 1
OPEC Seminar

Market stability and energy

security

Speakers:
Antonio Oburu Ondo, President of the OPEC Conference 2023, Minister of
Mines and Hydrocarbons, Equatorial Guinea
Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure,
United Arab Emirates
Parviz Shahbazov, Minister of Energy, Azerbaijan
Ambassador Gabriel Tanimu Aduda, Permanent Secretary, Ministry of
Petroleum Resources, Nigeria
OPEC bulletin 7–8 /23

Moderated by:
Dr Helima Croft, Managing Director and Global Head of Commodity Strategy,
RBC Capital Markets

14
For both producers and consumers, energy security is a dominant concern. What goes hand
in hand with this is sustainable energy market stability. In the case of the oil market, this
means balanced and sound fundamentals, as well as a platform to ensure that the necessary
investments across the full industry value chain are made to meet future demand. In this
regard, it is important to recognize the potential impact of excessive volatility, in its various
guises, on the oil market. For example, the impact of disconnects between the physical and
paper markets, the role of speculative activities, and how policies and the environmental
disclosure drive can lead to a shortfall in oil investments that leads to further energy
insecurity.

The session was the first ministerial-level discussion of traders and speculators alone.
the 8 OPEC Seminar. It focused on market stability and
th
“Producers are dealing directly
energy security, two areas that have dominated head- with the consumers; so the sets
lines in recent years. Dr Helima Croft, Managing Director of data they have are definitely
and Global Head of Commodity Strategy at RBC Capital much more accurate than those
Markets, moderated the panel. of anyone else, no matter how
She noted a strong demand outlook for the second big a trader may be.” To ensure
half of 2023 — despite some concern regarding investor even better market forecasting, he
sentiment, positioning, and low liquidity — and began noted that OPEC was consolidating
by asking each panel member for their views. and validating its data — includ-
ing by working with independent
third-party institutions — and thus
would be even more effective and
Suhail Mohamed Al Mazrouei transparent moving forward.
Minister of Energy and Infrastructure of the United Arab Minister Al Mazrouei assessed
Emirates the frequency of OPEC and DoC Suhail Mohamed Al Mazrouei.
meetings “to attend to the market” as being excellent,
Al Mazrouei praised the solidarity demonstrated by and praised the voluntary adjustments made by Saudi
OPEC and the participating countries of the ‘Declaration Arabia, Russia and Algeria as contributing to market
of Cooperation’. The 35th OPEC and non-OPEC Ministerial stability. He noted that — as always — there would be
Meeting in June — “to me, the second most important a lag in time between when the reductions were made
meeting after April 2020” — had reaffirmed this, includ- and when their actual impact was felt.
ing on difficult issues like future production adjust- As per its new national energy plan, the United Arab
ments, and underlined the group’s excellent pragma- Emirates was investing heavily in hydrocarbons and
tism, fairness, and leadership. renewables. He cautioned that investments in hydrocar-
This cooperation was aiding market stability, and bons were declining across the globe, which could jeop-
could even be expanded to include other oil produc- ardize efforts to ensure that the world had enough fuel
ers in the future. With OPEC and the DoC Participating to meet demand. For its part, the United Arab Emirates
Countries representing around 40 per cent of the world’s would expand its oil production capacity to 5 mb/d
oil production capabilities, “imagine if we comprised 60 by 2027, while “any talk of oil demand plateauing or
or 70 per cent of the producers of the world, we would do decreasing was not backed up by any substance”.
an even better job… the more datasets we would have… Elsewhere, the contribution of renewable energy
OPEC bulletin 7–8/23

our market prediction would be even better”. to the United Arab Emirate’s energy mix would “reach
Regarding analysis of the market, he stressed that 32 per cent by 2030 and 38 per cent by 2035”, while
oil producers possessed more accurate datasets than the United Arab Emirates also planned to triple its

15
 Ministerial session 1

renewable energy capacity from 2022 to 2030. It was Minister Ondo noted that market stability was crit-
OPEC Seminar

reducing energy consumption in buildings and educat- ical for both consumers and producers, as without it,
ing youth to improve future energy consumption habits economic planning and budgeting were very difficult,
too. and countries’ ability to improve citizens’ lives dimin-
In addition, as per its hydrogen strategy, the United ished accordingly.
Arab Emirates planned to export hydrogen by 2030. It Furthermore, he believed that OPEC Member
was targeting 1.2 million tonnes by that year, most of it Countries and the Participating Countries of the DoC
green hydrogen, and 15 million tonnes by 2050, most were succeeding in delivering “more certainty in the
of which would be exported. Hydrogen fuel would be way we are allocating production levels for each country,
used to reduce emissions in the United Arab Emirates’s including through third-party organizations that are pro-
industrial sector as well. viding analysis and data that every country can accept
Finally, the United Arab Emirates was also engaged as objective”.
in electrifying its transportation sector in anticipation of This in turn was fostering excellent unity, as reflected
rapid growth in the use of electric vehicles and hybrid in the achievement of a number of strong decisions
cars. taken at the 35 th OPEC and non-OPEC Ministerial
Meeting. Agreement had been possible because “we
were so conscious that what we were doing there was
so important for ensuring the stability of the market, and
Antonio Oburu Ondo thus stability for peoples’ pockets and ways of life”.
2023 OPEC Conference President and Minister of Mines On the energy transition, Minister Ondo believed
and Hydrocarbons of Equatorial Guinea that the world required a pragmatic situation that
entailed moving towards net zero while continuing to
Ondo praised OPEC’s important role in fostering market use commodities like oil and gas. Ultimately, countries
stability, which was ensuring greater certainty and pos- would only be able to meet the rise in energy demand
itively affecting people’s lives across the globe. and ensure energy security by investing in and using “a
He believed that if even more oil producing nations combination of sources of energy, including both fos-
— regardless of their size and output — worked more sil fuels and renewables”. Towards this end, delivering
closely together, market stability and predictability adequate investment for both was critical.
would improve, along with the availability and quality
of relevant data.
“OPEC is an organization that creates certainty,
and in this respect the bigger it would be the better,” Parviz Shahbazov
he said. Minister of Energy of Azerbaijan

Shahbazov said that the Seminar was extremely timely

and would facilitate important discussions and action
on a variety of pressing topics. Azerbaijan valued
the excellent cooperation among OPEC and the DoC
Participating Countries, and believed that — by work-
ing together — the whole was greater than the sum of
its parts.
He viewed issues surrounding falling investment in
the oil and gas sector with concern, as exemplified by
Goldman Sachs’ assertion that decreasing investment in
the near future would lead to “a loss of 10 mb per year,
plus 3 m/boe in liquefied natural gas”, for example.
OPEC bulletin 7–8 /23

Minister Shahbazov outlined that renewables were

very important for environmental security and sustaina-
bility, but also underlined that “80 per cent of energy for
Antonio Oburu Ondo.

16
 Ambassador Gabriel Tanimu Aduda
Permanent Secretary of the Ministry of Petroleum
Resources of Nigeria

Aduda stated that OPEC and the DoC Participating

Countries were helping to foster market regulation in a
positive sense, stating that “a market that cannot be reg-
ulated, cannot be controlled, and a market that cannot
be controlled, cannot be predicted. If one cannot pre-
dict, then one cannot ensure sustainability.”
Parviz Shahbazov.
He believed that “all oil producers should be a part
of OPEC”, as it was helping Nigeria greatly, providing
the 100 trillion dollar world economy depends on fossil the country with a global picture,
fuels; this fact means that we cannot abandon them in and improving the market.
a short time.” Although Nigeria had expe-
He noted that “if OPEC did not exist, it would need rienced some challenges — for
to be immediately created and even expanded beyond example, with regard to security
the borders of oil into the energy sector as a whole. We — this had not deterred investors,
are in a transitional time and need to think broadly, act including many IOCs, from want-
widely and think about the future.” ing to invest even more in Nigeria’s
Elsewhere, he cautioned that the world was “not in oil and gas industry. With its large
a position to abandon any source of energy” and noted population and resources, Nigeria
that “natural gas represents one of the most important represented a huge market in
pillars of the energy transition”, necessitating appro- Africa for investors.
priate investment policies and sensible rules regarding Aduda also noted that, “fossil
financial instruments and gas. fuels will be with us for a long time
Azerbaijan was producing and exporting large quan- to come. We just have to ensure
tities of natural gas, including to Europe, and would con- cleaner ways of extraction, reduce
Ambassador Gabriel Tanimu Aduda.
tinue to do so moving forward. He said that all partic- emissions, and ensure that we
ipants of the global energy market — both consumers move along with the global agenda
and producers — should recognize that energy security for energy transition”. In addition, gas would be key in
remained everyone’s responsibility and not just that of Nigeria moving forward, with Nigeria increasingly promot-
producers. ing domestic consumption of liquefied petroleum gas and
Minister Shahbazov praised OPEC Members compressed natural gas in every-day use.
Countries’ serious support in transitioning towards He noted that developing renewable energy sources
developing green energy sources. This close co-opera- as part of Nigeria’s transition agenda required large
tion was exemplified by investments in Azerbaijan from investment, including, for example, to first enable the
the United Arab Emirates and Saudi Arabia, while — par- mining of minerals and construction of relevant infra-
tially based on its co-operation within the DoC and with structure and equipment.
OPEC — Azerbaijan would able to provide its partners in Ultimately, ensuring a successful and sustaina-
Europe with green energy in the future too. ble transition required technology, financing, and co-
OPEC bulletin 7–8/23

Moving forward, he believed that it would become operation. “And this is what we have seen coming from
increasingly necessary to discuss all global energy OPEC and the DOC. OPEC has set Member Countries on
issues together, and not just one sector at a time. the right path and should be applauded.”

17
 High-level roundtable 1

High-level roundtable 1
OPEC Seminar

Energy sustainability trilemma

Speakers:
Eng Mohamed Hamel,Secretary General, Gas Exporting Countries Forum
Francesco La Camera, Director General, International Renewable Energy Agency
Amin Nasser, President and CEO, Aramco
Patrick Pouyanné, Chairman and CEO, TotalEnergies
Kadri Simson, Commissioner for Energy, European Commission
Jim Burkhard, Vice President and Head of research for oil markets, energy &
mobility, S&P Global Commodity Insights
OPEC bulletin 7–8 /23

Moderated by:
John Defterios, Professor of Business, NYU, Abu Dhabi

18
In recent years, it has become clear that the energy world is facing challenges that are
enormous, complex and interconnected. This has been evidenced by the strains and
conflicting targets related to energy security, energy affordability and the need to reduce
emissions, all integral components of the energy sustainability trilemma. In addition, it
has become clear that focusing on one aspect of the trilemma, while neglecting the others,
can lead to unintended consequences, such as market volatilities, price shocks and energy
shortages. In order to avoid these unwanted effects, national and international energy
policies should be evolved carefully, fine-tuned when necessary and involve all relevant
stakeholders. With energy at the heart of the global economy, and people’s everyday lives,
it is vital to take a holistic view of the energy sustainability trilemma.

The session’s moderator, John Defterios, Professor commitments, as well as acceler-

of Business, NYU, Abu Dhabi, began by highlighting ate funding for adaptation. He also
some questions around the trilemma and the energy wanted to see more progress on the
system, noting the importance of bringing together the transferal of technology and capac-
key issues of energy security, energy affordability and ity building.
decarbonization. He noted that this year was
important for the Sustainable
Development Goals (SDGs) too,
because there would be a global
Eng Mohamed Hamel stocktake in September. He added
Secretary General, GECF that a recent UN report stated that
only 12 per cent of the 140 targets
In underscoring the importance of gas, Eng Mohamed were expected to be met by 2030.
Hamel kicked off the discussion by stating, “We see nat- “We have to make efforts regard- Eng Mohamed Hamel.

ural gas not just as a bridging fuel. We see it more as a ing climate change, but not forget the importance of
destination fuel. In our recent outlook, we see demand the SDGs.”
for natural gas increasing by 36 per cent by 2050, and
its share increasing from 23 per cent to 26 per cent.”
Even under the decarbonization scenario, natural gas
demand would increase, he added. Francesco La Camera
He highlighted the issue of energy poverty, the desire Director General, IRENA
for higher living standards and expectations that the
world economy would more than double by 2050, as key Francesco La Camera stated that the international com-
reasons for expanding global energy requirements. munity had already agreed on certain polestars and was
In terms of power generation, he emphasized coal-
to-gas switching. “Natural gas is clean, available, versa- Francesco La Camera.
tile. It emits half the CO2 emissions of coal, so switching
from coal to gas is one of the most cost-effective miti-
gation pathways, in particular in developing countries.
We should not forget that today 37 per cent of electricity
OPEC bulletin 7–8/23

generation is coming from coal.”

From the perspective of COP28, Eng Hamel said
he expected developed countries to fulfil their finance

19
 High-level roundtable 1

moving towards them, including the Paris Agreement. In equivalent (boe), while green hydrogen cost $400/boe
OPEC Seminar

this context, 83 per cent of installed generation capacity while the US, through its Inflation Reduction Act, which
last year represented renewables — a record. had set aside $400 billion, was offering an incentive of
“The trend is clear, we are going to a new energy sys- $225/boe.
tem, it will consist highly of renewables, with the com- Although North America and Europe too were offer-
plement of hydrogen, mainly green, and the sustainable ing incentives, which were currently causing some
use of biomass. So the direction of travel is there … what industries to prosper, it was not sustainable, he said.
is not there if we compare our path of achievement with “How many countries can offer $225/boe as support?
the path of the Paris goal is the speed and scale of this And you cannot sustain this for the long term. Incentives
transformation.” are not available for developing counties.”
When asked about COP28, La Camera said the United He added: “I think the roadmap for transition is
Arab Emirates COP Presidency was doing an excellent job a multi-speed transition depending on the economic
of trying to be as inclusive as possible and changing the maturity of each country… We need to have an opti-
way that the COP was working, with more of a focus on mal mix, with conventional energy, with reduced emis-
action. sions by building carbon capture and storage and other
He also talked about the importance of institutional things that will reduce emissions and at the same time
capacity and professional skills in adapting to new reali- you moderate conventional energy until renewables are
ties, and the need to rewrite how international coopera- ready.”
tion worked. “I hope the COP will set a very clear mandate We need a just and inclusive transition, he stressed,
for multilateral financial institutions to build the infra- “a plan that takes all people from all countries from
structure needed in Africa and in South East Asia to make around the world to discuss these issues…it must be
investment profitable. This has to be their main task.” fair and take into consideration existing and new ener-
gies. The issue is emissions and we need to tackle
emissions.”

Amin Nasser
President and CEO, Aramco
Patrick Pouyanné
All energy sources are needed in Chairman and CEO, TotalEnergies
the future to meet the demand we
are seeing, said Amin Nasser. He Patrick Pouyanné underlined that security of supply
noted that along with expanding issues had come very strongly into the energy transi-
oil, Aramco would be “increasing tion debate last year. For him, two lessons were clear.
gas production by more than 50–60
per cent by 2030, along with grow-
ing … blue and green hydrogen and
renewables. By 2030, 50 per cent of
the utilities sector of the Kingdom
will be met using renewables.”
In terms of the energy tri-
lemma, unless we meet “afforda-
Amin Nasser. bility, security of supply, and sus-
tainability, you cannot meet the SDGs.” He noted that
affordability was key, highlighting the income dispar-
ities between industrialized nations and developing
countries, and their different priorities. There is no one
OPEC bulletin 7–8 /23

size-fits-all pathway, he stressed.

Cost was a deciding factor, too he stated. He said
that blue hydrogen cost around $200–250 barrel of oil
Patrick Pouyanné.

20
 For countries in Europe, diversification and long- said, “we will also electrify sectors
term contracts were important to secure supply and where we can do so.”
access was also an issue, said Pouyanné. Last year “we Simson also spoke about the
suddenly discovered we had a lack of gas terminals, but importance of cooperation and
we were able to build them and bring floating units, and that the EU wanted to offer our
face what we had to face. We discovered last year … you partners cooperation that went
can become very innovative. Germany debated about 20 beyond fossil fuels.
years to create a gas terminal and then three came on When asked about COP28 in
in six months. When you have no choice you do it, it is the United Arab Emirates, Simson
a lesson, it makes me very optimistic about the capac- said, it is important to build on
ity of mankind to innovate.” the success of Sharm El-Sheikh
In terms of the energy system, he said we had one (COP27) last year. “The industry
that was “82 per cent run using fossil fuels, by the way methane pledge is a clear delivera-
when I joined the industry 25 years ago it was also 82 ble. Also, this sector can tackle the
per cent. You could tell me there has been no progress, second most polluting greenhouse
but yes we have had had lots of progress, lots of low-car- gas emission.” Aside from tripling Kadri Simson.
bon energy systems have been developed.” renewables, achieving the Paris Agreement targets would
He also highlighted an expanding population, mean- also require more efficient use of energy, she added.
ing a growing need for energy and a desire for a better
way of life. “It is not only about changing the system, it
is answering to a larger demand for energy...We should
not dream here, we are serious leaders. Only ten per cent Jim Burkhard
of this amount is low-carbon today. We are not going to Vice President and Head of research for oil markets,
replace a system overnight, or in ten years, it is not true.” energy & mobility, S&P Global Commodity Insights
He said the solution was to lower the emissions of what
was produced today. “When we produce oil, when we pro- On the question of whether underinvestment in oil would
duce gas, it is our first duty to reduce the CO2 emissions, be a problem later, Jim Burkhard
and we can do it…We must reduce emissions of the pres- stated that there were a number
ent system, it’s fundamental. We can divide the emissions of responses. In 2020, there was
by two.” Pouyanné added that his company would reduce underinvestment in oil, he said,
emissions by 80 per cent by 2032. “And while we are decar- but due to developments in 2021
bonizing this system, we must build the new system.” and 2022, including the actions of
OPEC+, global oil supply this year
was strong.
“When you add up all the gains
Kadri Simson outside of OPEC+, US crude oil pro-
Commissioner for Energy, European Commission duction was 1 mb/d higher y-o-y.
But it is not just the US, it is Canada,
Kadri Simson stated that despite the geopolitical situa- Brazil, Ghana, Norway, Mexican
tion in Eastern Europe last year, “we were the only region condensate, Chinese production...
globally that cut our CO2 emissions by 2.5 per cent. When you put that all together,
And that happened despite the fact that last year was when you add up all those barrels,
Jim Burkhard.
extremely difficult for our industry and for our house- the volume growth that we come up
holds, because we witnessed the biggest energy crisis with outside of OPEC+ was over 2 mb/d this year. That is
in a generation.” roughly comparable to global oil demand growth.”
Last year was a record year in Europe for renewa- However, he stressed that “does not mean it is going
OPEC bulletin 7–8/23

bles, noted Simson, with 41 gigabyte (GB) of new solar to be that way next year or two to three years from now…
installed and 15 GB of wind. On windy and sunny days there are more challenges facing upstream investment
energy prices were negative, she said. In the EU, she today than there were five years ago.”

21
 Ministerial session 2

Ministerial session 2
OPEC Seminar

Investments, finance and inclusive

petroleum growth strategies

Speakers:
Saad Al Barrak, Deputy Prime Minister, Minister of Oil, Minister of State for Economic
and Investment Affairs, Kuwait
Hayan Abdulghani Abdulzahra Alsawad, Deputy Prime Minister for Energy Affairs,
Minister of Oil, Iraq
Mohamed M Oun, Minister of Oil and Gas, Libya
Eng Javad Owji, Minister of Petroleum, Islamic Republic of Iran
OPEC bulletin 7–8 /23

Moderated by:
Eithne Treanor, Founder & CEO, ETreanor Media

22
Investments are the lifeblood of the global oil industry. In OPEC’s World Oil Outlook, required
oil industry investments total $12.1 trillion to 2045. This equates to over $500 billion each
year on average, with recent annual levels significantly below this, due to industry downturns,
the pandemic, and the increasing focus on environmental, social, and governance (ESG)
issues. Industry stakeholders can help to ensure a long-term investment-friendly climate,
with sufficient finance available and supportive and inclusive policies. Investments should
consider an ‘all-peoples, all-fuels and all-technologies’ approach to the issues of energy
security and reducing emissions. One that is sustainable and works for both producers and
consumers, as well as developed and developing countries.

Saad Al Barrak
Deputy Prime Minister, Minister of Oil, Minister of State
for Economic and Investment Affairs, Kuwait

Deputy Prime Minister, Al Barrak began by saying that

Kuwait was seeking to invest more than $300 billion in
the oil and gas industry by the year 2040. Kuwait was
continuing to invest in expanding its capacity. He noted
that global investment levels were below required lev-
els, which could affect the stability of energy markets.
This could be exacerbated by geopolitical developments
in some regions of the world.
He noted the extensive range of partnerships that
Kuwait had with IOCs, including in the petrochemical
sector. Kuwait was open to investing in the energy mar-
Saad Al Barrak.
ket. KPC was committed to being a global energy player,
in all sources of energy.
The Deputy Prime Minister noted that investing
in renewables was a ‘no-brainer’ and essential. He
stressed that the oil produced by Kuwait was cleaner
than many heavier crudes produced elsewhere. He con-
cluded by stressing the need for peace in the world,
which could fuel economic growth.

Hayan Abdulghani Abdulzahra Alsawad

Deputy Prime Minister for Energy Affairs, Minister of
Oil, Iraq

Deputy Prime Minister, Alsawad praised the Secretariat

OPEC bulletin 7–8/23

for organizing a great seminar. He said that Iraq had

been honoured to host the 60 year anniversary cele-
brations of the founding of OPEC. Iraq had a promising Hayan Abdulghani Abdulzahra Alsawad.

23
 Ministerial session 2

long-term programme for the oil industry. The country Iraq had an ambitious plan to utilize renewable ener-
OPEC Seminar

seeks to increase investment in the oil and gas sectors. gies, particularly solar. The country had plans to invest
Iraq had developed a partnership with Shell in Basra. in solar energies. Solar was an area of particular inter-
The Minister outlined many of the current projects est to the Minister, as previously in his career, he had
throughout the country aimed at enhancing gas pro- written many papers on the topic.
duction. Similarly fruitful projects were being undertak-
ing in the oil industry. Specifically, he mentioned that
Iraq and French oil major TotalEnergies had signed a
$27 billion energy deal that sought to increase oil pro- Mohamed M Oun
duction and boost the country’s capacity to produce Minister of Oil and Gas, Libya
energy with four oil, gas and renewables projects. The
Minister noted the comprehensiveness of the projects The Minister thanked the SG and Secretariat for organ-
and cooperation. izing an outstanding Seminar. Libya had great potential
He also provided an overview of recent bidding both in conventional oil and gas and in shale. Forty per
rounds. A priority for the country and Government was cent of the land in Libya had not been seismically sur-
satisfying its domestic needs. He described the progress veyed, offering great potential. The Government sought
Iraq had also made in the field of solar energy, and also to increase national production to 2 mb/d between
provided an overview of the Government’s efforts to stop three to five years. Several IOCs had begun to work on
gas flaring by 2030. projects with the NOC.
OPEC bulletin 7–8 /23

24
 Mohamed M Oun. Eng Javad Owji.

The Minister was keen to see OPEC Member and fruitful partnerships had been signed with NOCs
Countries cooperate and work together to finance pro- and IOCs.
jects. Libya was also diversifying its energy mix. Libya The Minister noted the attractiveness to investors of
and TotalEnergies had signed a project in the field of Iran petroleum contracts, IPC, which offered a range of
solar energy. He noted that Libya and Malta had signed benefits. Companies who had availed of this, had made
a memorandum of understanding in which the two good profit. A priority for the country was to increase liq-
countries pledged to work towards an energy intercon- uefied natural gas (LNG) production. Privileges would be
nector linking their electricity grids, which would cap- granted to potential LNG investors. The return for invest-
italize on Libya’s outstanding potential in the field of ment period had shortened and become very attractive
solar energy. to investors. IR Iran had plans to develop its capabilities
The Minister stressed the importance of equitable with regard to both solar and wind. The country also had
access to all forms of energy, especially in Africa. Libya several projects to reduce gas flaring. He stressed the
was committed to clean energy and a clean environ- importance of gas production.
ment. He would like to see more cooperation between
OPEC Member Countries in investment and other pro-
jects, and potentially in human resources.

Eng Javad Owji

Minister of Petroleum, Islamic Republic of Iran

The Minister thanked the SG and Secretariat staff for an

outstanding Seminar. He noted IR Iran’s great poten-
tial in oil and gas reserves. The Government had plans
to increase the production of oil and gas. The country
had made great progress in the expansion of its tech-
nological capability, both offshore and onshore. IR Iran
OPEC bulletin 7–8/23

was expanding its refining capacity. Several successful

Eithne Treanor.

25
 High-level roundtable 2

High-level roundtable 2
OPEC Seminar

Energy investment:
challenges and opportunities

Speakers:
John Hess, CEO, HESS Corporation
Shaikh Nawaf S Al-Sabah, CEO, KPC
Claudio Descalzi, CEO, ENI
Russel Hardy, President and CEO, Vitol
Sebastião Gaspar Martins, CEO, Sonangol
Alfred Stern, CEO, OMV
Jean Paul Prates, CEO, Petrobras
OPEC bulletin 7–8 /23

Moderated by:
Bob McNally, President, Rapidan Energy Group

26
Energy is a central pillar of global economic growth and social welfare, underpinning old and new
industries, investments, innovations, access to health, education and job opportunities. Access
to reliable and affordable energy sources for all cannot be achieved without regular and steady
investments. Today, investors are often caught up in dilemmas that challenge their impetus to
invest, for example, political and regulatory uncertainty, ESG issues and the knock-on impacts of
the pandemic. These challenges need to be faced head on, particularly given that OPEC’s World
Oil Outlook sees global energy demand rising by 23 per cent in the period to 2045. This expansion
also underscores the opportunities in the energy space, and the massive investments required.

The session saw a host of well-known and respected and it was vital that the oil and gas
industry CEOs tackle questions on the key issues industry was united. In looking to
related to investment. This included a focus on barri- COP28 in the United Arab Emirates
ers to investment in the oil industry, the recent annual later this year, he said, “we need
drop offs in investments, the role of government, pol- climate literacy, energy literacy and
icymakers and private investors in financing, and economic literacy.”
the dual investment challenge of energy security and Asked about the company’s off-
decarbonization. shore oil developments in Guyana,
It was this last challenge that was initially picked up Hess described the country as one
on by the moderator, Bob McNally, President, Rapidan with massive resource potential,
Energy Group. He spoke of the delicate balancing act but underscored the importance
required in supplying energy and reducing emissions, of sustainability. In fact, in June
one that required huge investments. 2023, Hess Corporation, together
with the Government of Guyana,
earned the annual Energy Transition
Initiative Award from the Association John Hess.
John Hess of International Energy Negotiators.
CEO, HESS Corporation The award was for a Carbon Credits Purchase
Agreement through which Hess would purchase
It was a point picked up on by John Hess in his remarks, $750 million of carbon credits between 2022 and
who said that over the past 18 months or so there had 2032 from the Government of Guyana. The arrange-
been a realization of the importance of energy security ment would protect Guyana’s forests, support the
for an orderly energy transition. He added it was clear company’s climate strategy, and provide capital to
that “oil and gas were needed for a secure and just improve the lives of Guyanese citizens through gov-
energy transition.” ernment investments as part of Guyana’s Low Carbon
The key to a sustainable energy future, he added, Development Strategy.
was investment. He commended OPEC and OPEC+ for
their role in aiding market stability, a fundamental
pre-requisite for large-scale investments.
Hess also highlighted the need to remember that Shaikh Nawaf S Al-Sabah
the oil and gas industry was a strategic one for the US, CEO, KPC
supporting around 12 million jobs. It was a fundamen-
tal business, and extrapolated this our more broadly “The energy transition will require hydrocarbons,” said
OPEC bulletin 7–8/23

stressing how vital the industry was to world security. Shaikh Nawaf S Al-Sabah. He added that we had a
Looking ahead, he said the need for more energy responsibility to our customers to provide sustainable
and less emissions was a “herculean challenge”, and strong supply. In looking at the Gulf region, he also

27
 High-level roundtable 2

stated that they recognized that

OPEC Seminar

they had the world’s strategic

resource, with the lowest cost
and lowest carbon density.
In talking about Kuwait’s
resource base, he said it was
“gigantic” and KPC would be
investing around $50 billion
over the next five years.
He said that the country
aimed to increase its oil pro-
duction capacity to 3.2 mb/d by
Shaikh Nawaf S Al-Sabah. Russel Hardy.
the end of 2024 and further to 4
mb/d by 2035.
Kuwait was also making significant investments in
the downstream, such as the huge 615,000 b/d Al-Zour
refinery. KPC said it aimed to achieve up to 1.6 mb/d Russel Hardy
of domestic refining capacity by 2025 with maximum President and CEO, Vitol
conversion capabilities, while ensuring maximum
offtake of domestic heavy oil and meeting local energy On the energy transition, Russel Hardy stressed that as
demand. a business like Vitol needed to think about regions dif-
ferently, specifically the often diverse needs of devel-
oped and emerging markets.
He said that positioning the business for this future
Claudio Descalzi was important for Vitol and talked about three key
CEO, ENI areas.
The first was the traditional oil business, which he
Looking back to 2022, Claudio Descalzi said it was a stressed was still very much needed. “We deliver 4 mb/d
wake-up call for Europe on gas. It had been a chal- of crude to refiners around the world, and we deliver 4
lenging time, he added, and it was clear the region mb/d of products to customers across the world. And
needed more time to compensate for Russian gas. that is going to grow in Africa and Asia.”
It was evident going forward, he added, that we The second was gas and power, which he said was
“need a larger set of energies.” In this regard, he said, a “growing business for us”. The third was the opportu-
“Eni is investing in all energies.” nity to build a big sustainable business. “This year, half
He said Eni was looking to play a leading role in our capex is going into power and renewables. Certainly,
the energy transition. By 2050, the company would from a European perspective, we see it as a business
achieve carbon neutrality: in order to do so, it was opportunity.”
already relying on innovative solutions and propri-
Claudio Descalzi.
etary technologies, new busi-
ness models and a network
of alliances for sustainable Sebastião Gaspar Martins
development. CEO, Sonangol
Descalzi picked-up on tech-
nological innovation as a focal When talking about his home country of Angola,
point of the company’s strategy. Sebastião Gaspar Martins said that while they sup-
Eni believed that technology was ported the energy transition, “we cannot afford to live
OPEC bulletin 7–8 /23

the key to decarbonization, and on the energy transition.”

its approach considers the entire He underlined the need to recognize the challenges
value chain. and the “different realities” of developing countries.

28
 an innovation and growth driver to transform the com-
pany into a net zero one in all three scopes by 2050.”
Transforming into a sustainable fuels, chemicals,
and materials company with a strong focus on circu-
lar economy solutions, OMV believed, probably meant
the most fundamental strategic shift in the company’s
history.
It was a big task, Stern added, and OMV was doing
this by transforming into an integrated energy com-
pany. “Practically, this means two things. Change the
product portfolio that we have, and second, we are
changing the feedstock portfolio that we have.”
Sebastião Gaspar Martins.
In terms of products, he said
the company was moving from
‘The level of needs for many areas of the world are not products made with combus-
the same,” he added. tion to more long-lived chemical
He also noted that his country was still dependent products that would be impor-
on oil and gas for around 90 per cent of its revenue. “We tant enablers of the energy tran-
still need to rely on these resources to provide for our sition. Examples of this, he said,
own living standards,” he said. It is important to see the included making cars lighter
energy transition as “a system” and not just restrict the with plastics, which reduced the
discussion to renewables. energy requirement.
Sonangol’s strategy was to invest in oil and gas, he
said, and use some of the revenue generated to invest
in the energy transition.
“We need to explore, produce and reduce emissions Jean Paul Prates
in the energy transition,” he added. CEO, Petrobras

When asked about recent calls to Jean Paul Prates.

stop investments into greenfield
Alfred Stern oil and gas projects, Jean Paul
CEO, OMV Prates said that it was an “unre-
alistic target for the world to do
“We have an exciting strategy going forward’, said Alfred that in the upstream.”
Stern. “We are supplying the energy needs of today From a company perspec-
with oil and gas, while we are using sustainability as tive, he said, there continued to
be a focus for Petrobras on oil
and gas, and the “big challenge
for us is to decarbonize our own
operations.”
At the other end of the value
chain, he said, it was vital to get
the national and international
collaboration of governments
to change consumer habits, oth-
erwise they would continue to Bob McNally.
OPEC bulletin 7–8/23

have the same demand for plas-

tics, particularly as economies grow and populations
expand.

29
Alfred Stern.
 High-level roundtable 3

High-level roundtable 3
OPEC Seminar

Technology and innovation for

a low emissions future

Speakers:
Fahad Alajlan, President, KAPSARC
Vicki Hollub, President and CEO, Oxy
Jeff Miller, Chairman, President and CEO, Halliburton
Alessandro Bresciani, Senior Vice President of Climate Technology Solutions,
Baker Hughes
Dr Ayed S Al-Qahtani, Director, Research Division, OPEC
Gerhard Thonhauser, Professor, Montanuniversität Leoben
OPEC bulletin 7–8 /23

Moderated by:
Dr Helima Croft, Managing Director and Global Head of Commodity Strategy, RBC
30 Capital Markets
Technology advancements and innovations have the potential to improve performance
across the entire oil industry value chain. They are vital for improving efficiencies, extending
the industry’s reach in terms of the way resources are identified and developed, enabling
better optimization and automation, and in helping provide better, faster, cheaper, healthier
and safer operations and products. The application of advanced technologies can help to
significantly reduce the carbon footprint of the industry. This includes a variety of technologies
such as carbon capture, usage and storage, direct air capture, blue hydrogen, crude-to-
chemicals, integration of renewables and digitalization for increased process efficiency. A
future focused on technology innovation will require significant investment for companies
to stay ahead of the technology curve.

Moderator Dr Helima Croft, Managing Director and

Global Head of Commodity Strategy, RBC Capital
Markets, started the session by pointing out that this
would be the first COP held in an OPEC Member Country,
allowing the industry to be ‘inside the tent’ of discus-
sions. She asked the panel what the ticket to entry was
for the oil and gas industry, and the service industry into
the transition conversation.

Fahad Alajlan
President,KAPSARC

Fahad Alajlan stated that in Glasgow, not only were oil

and gas excluded, but others were excluded as well, Fahad Alajlan.
including nuclear.
“You could mention the word gas as a transition fuel, of patents filed by the oil and gas industry, it’s around
now we are talking about gas as a destination fuel…but 1,000 per year and that number has been consistent
a lot of things have changed. I think for COP28, we have over the past decade, but the focus has changed sig-
seen the United Arab Emirates Presidency and Dr Sultan nificantly over the past few years,” he said.
Al Jaber do a very good job of having this as an inclusive Alajlan said that around 70 per cent of university stu-
and action-oriented COP. We have seen what the lead- dents were not interested in going into oil and gas, so it
ership has asked of the oil and gas industry and it is a is a difficult challenge globally. Even in Saudi Arabia, a
lot of things, but a lot of things that are doable, also in 2021 study showed oil and gas coming fourth as a pref-
the short term,” he said. erence for graduates after tech and financial services.
He said working on methane emissions through the “So even in Saudi Arabia it’s hard to attract the top
Global Methane Pledge and carbon capture, utilization talent to come into oil and gas…The problem is when we
and storage (CCUS) were discussed, along with other look at how students define tech, they still think about
technologies like hydrogen for a low-emission future. the oil industry like an old rig. They don’t see the intel-
“So we’ve seen the focus on the oil and gas sec- ligent field, the reservoir simulation that’s being done,
OPEC bulletin 7–8/23

tor, what the oil and gas companies can do and this the big data that are being done.
is a group that has done a lot in the past, especially “For us at KAPSARC, we’ve expanded the team, it’s
when it comes to innovation. If you look at the number doubled in size in the past two to three years, so we are

31
 High-level roundtable 3

handling more big data, we are actually doing a lot of and gas so that the rest of the world would have the right
OPEC Seminar

interesting things, looking at data, looking at tech, but to develop resources. “The way we do that is through
I’m not sure the perception is there for students this is direct air capture (DAC), we use carbon capture from
a shortfall the industry needs to overcome,” he said. point sources, we put CO2 back into the reservoir, and I
Alajlan added that Saudi Arabia was seeing invest- know that is contrary to what people want to hear…but
ment in renewables and CCUS (it is creating the larg- the reality is if you put CO2 into an oil reservoir, you’re
est CCUS hub in the world), blue and green hydrogen, going to produce incremental oil from that reservoir and
but also oil and gas. Saudi Arabia and Saudi Aramco that incremental oil is going to be carbon neutral or car-
are increasing production by 1 mb/d and increasing bon negative…by doing that you are actually generating
gas production by 50 to 60 per cent. “There’s a lot of a lower cost of net-zero oil,” she said.
investment in Saudi Arabia. The question is what we Net zero oil can then create net zero jet fuels and net
do for other countries. The US has seen a lot of invest- zero maritime fuels, so over time as the entire industry
ment, but what about countries that can’t afford to give gets working on this, emissions from oil and gas pro-
incentives?” duction can be offset, she said.
Clean tech almost doubled to $79 billion, he added. “We were planning to build a large-scale capture
“So there is growth there, but the question is how can facility in the Permian before this came out, but it will
we facilitate some of that in developing countries? set a floor for the revenue we will get for our direct cap-
Technologies are not being financed today because ture, which means we can accelerate the number of DAC
they’re not ESG (environment, social governance) facilities that we will build before 2035. We originally
friendly, such as CCUS and energy efficiency…so it’s very estimated 100 of these facilities, now we will do 130,”
important that we work on this and how we can define she said.
it better.” “The first facility’s going to extract 500,000 tons per
“I’m optimistic about technology, I’m less optimis- year, the ones after that will extract one million tons per
tic about finance, and 50–50 on policy.” year. Some people say it’s expensive and will not be so
consequential, but it is, because it takes about three
direct capture facilities of one million tons per year to
offset the same amount of emissions that Tesla pre-
Vicki Hollub vented by the number of cars they built last year,” she
President and CEO,Oxy said, adding, “If you combine what we are doing and
what we intend to accomplish before 2035, putting
Vicki Hollub talked about the all that together and working over industrial sectors
importance of focusing on emis- to make it happen will over time cumulate to the point
sions, not the source of emissions. where it will make a difference, but its incentives rather
“I’m proud of the oil and gas than the carrot versus the stick. And I believe the kind
industry and how we’ve changed of things being put in place in the US should be a model
over the years…the technology for what other countries do.”
is amazing, I think some people She hoped that in three years the world and UN
don’t understand the degree of would have a better plan and understanding about what
the technology we have in our it would take to manage the energy transition.
industry and that we’ve advanced
over the life of the industry. Every
time we’ve faced a challenge our
industry has stepped up and faced Jeff Miller
Vicki Hollub. that challenge and often exceeded Chairman, President and CEO, Halliburton
what we were going to do. And I
think that’s going to happen here Jeff Miller said that first and foremost service compa-
OPEC bulletin 7–8 /23

with this transition,” she said. nies, including Halliburton, brought efficiencies to
Hollub said it was a transition not out of oil and gas, the table in the form of automation, lower cost and
but into a world where emissions could be offset from oil reliability.

32
 multiple sources of energy, which would require different
technologies to decarbonize them.
“We can talk about post-combustion carbon capture,
we can talk about direct carbon capture and there is a
lot to do on the efficiency side, as well as on de-flaring
activities. The Baker perspective is that there is no one
solution, you need to play across the portfolio of poten-
tial solutions and we need to cover our bets, where we
want to go and create the differentiation factor for our
portfolio,” he said.
Roadblocks to developing new technologies could
be capital and people. What was important fundamen-
Jeff Miller. tally was how “we can play together in order to acceler-
ate the new technology.” Bresciani said he could quote
“In my experience, everything we set out to do multiple examples. The company was working with
improves. Safety has improved over my career dramati- Occidental on net power, building turbos for oxy-com-
cally. I think emissions improved over that time but one bustion type of solutions.
of the most important things we can do is to be efficient “This can be a really exciting technology which can
and automate. So we’ve automated drilling tools, we’ve see a break through the industry, use gas as power, with
automated cementing equipment, we’ve automated a residual that is 97–98 per cent concentrated CO2, so it is
lot of things to make them faster. easier to handle than classic post-combustion carbon and
“We drilled a world-record length well in Abu Dhabi capture. This is coming through cooperation, investing in
last year, 50,000+ feet. I was bragging about that to my programmes and obviously coming together on the path.”
customer and they stopped me and said, ‘You need to This was a multi-year investment that required
quit characterizing that as the longest well in the world, resources and consistency on the path, he said.
quite frankly that’s the lowest-emission well in the world Bresciani added that it was essential to attract the new
also because we don’t build an extra island, we don’t generation, because today 30 per cent of technology
have to move another rig…that’s the way we continue existed to help reduce the temperature of the planet,
to advance every single day in terms of lowering emis- and 20–25 per cent of those technologies were in the
sions,” he said. incubation phase, with the rest yet to come.
Historically, private industry has been the best at “It’s definitely a long-term plan we need to go
solving these problems, he added, stating that limit- through that requires new people coming into the indus-
ing access to oil and gas was not part of the solution. try, collectively we have to create environment to have
Miller saw it as a conflict between aspiration and reality.
“Reality will win in terms of demand satisfaction, any-
thing that gets in the way of that is taking us in the wrong
direction,” he said. Miller was optimistic that aspiration
and reality would be reconciled over the next few years,
adding, “My money is on reality every time.”

Alessandro Bresciani
Senior Vice President of Climate Technology Solutions,
Baker Hughes
OPEC bulletin 7–8/23

Alessandro Bresciani pointed out that there was not

just one recipe to decarbonize the oil and gas indus-
try and that the energy transition was going to take
Alessandro Bresciani.

33
 High-level roundtable 3

new talent…We need it to create something that is sus- north of 1,200 facilities. It remains a matter of financing
OPEC Seminar

tainable,” he said. and financing proves to be an issue,” he said.

Bresciani is optimistic about the next three years, He added there was 95 million tons of hydrogen
“because three years is a very short of time, but it was being produced. “We would need an additional 25
also been demonstrated in the last three years that we million tons by 2030, probably 15 of that could come
have changed so many things. There’s been so much from blue hydrogen and the oil industry can cater to
acceleration in the industry and the world. The last three that.”
years have done a lot to reaffirm what the real priorities OPEC Member Countries were great examples when
of the world are. That will help us out going forward.” it came to low-carbon technology, said Al Qahtani.
“When it comes to CCS, we have successful experiences
of Saudi Aramco, the United Arab Emirates, Algeria,
when it comes to direct capture the same. In hydrogen,
Dr Ayed S Al-Qahtani we saw the first ammonia shipment going from Saudi
Director, Research Division, OPEC Arabia to Japan seven to eight months ago.
“Members of OPEC are doing all of the above when it
Dr Ayed S Al-Qahtani started with comes to energy transition. We are doing solar, nuclear,
numbers from OPEC’s flagship hydrogen, carbon capture, utilization and sequestration,
World Oil Outlook (WOO). The WOO and I think the oil industry is endowed with minds that
saw the world population increas- have kept it a centre of excellence for many decades with
ing by around 1.9 billion people, many innovative approaches, and many inventions that
or more than 2.5 times the size of have risen to the challenge,” he stated.
Europe’s population, he said. Not only the technology transferral to the Global
“We see the global economy South, but also the availability of financing to these
doubling, that will require a lot of nations was desperately needed, he added. “Hopefully,
energy, at least 65 million barrels three years from now the Global South will have a
of oil equivalent, about 23 per stronger voice in multiple fora, not only in banking, but
cent more energy than what we in technology transferrals.”
consume today. More than half of
that volume will come from renew-
ables, that shows how aggressive
Dr Ayed S Al-Qahtani. we are and how optimistic we Gerhard Thonhauser
are when it comes to renewables Professor, Montanuniversität Leoben
demanding a significant share of the energy mix going
forward. Gerhard Thonhauser stated that the framework that
“We know that we will need a lot of energy, all policy or politics set to innovate was very important,
sources of energy, oil, gas, nuclear, coal, renewables…… because if that is not there, there is not enough support.
The global energy system is so huge that we cannot “I think we as an industry are on a mission to go
change it with a flip of switch between now and 2045, from hydrocarbons to hydrogen and carbon, which is the
which is only 22 years from now,” he said. future I believe for a lot of what we do…We have to get
Al Qahtani said technology was slowly developing much more efficient in what we do. I think the avenue
and that it would take an evolutionary as opposed to a is two-fold: digitalization…how can we feed these sys-
revolutionary route. “We are looking into current tech- tems with more and better data, and that is a challenge
nologies that will help us burn oil in a more environmen- that I have seen echoing for 25 to 30 years. The second
tally responsible manner, we have a lot of available and part is we how can make what we do with a lower CO2
economically feasible technologies. footprint.”
“We have around 35 operating CCS plants as we He gave an example of the global fleet of drilling rigs,
OPEC bulletin 7–8 /23

speak, storing about 45 million tons of CO2. We proba- which emitted about the same amount as 50 million cars
bly will have more than 200 facilities by 2030. To make in CO2. There were about 2,000 to 2,500 rigs running,
a real dent on the climate change front, we would need he said. “If we would improve by 20 per cent, we take

34
Gerhard Thonhauser. Dr Helima Croft.

ten million cars off the road, which is a very honourable discussing today is not going to happen without young
target. We can do this with efficiency, including how we people who want to work for us and share their talent
fuel these rigs, which can be done with hydrogen,” he with us.
stated. “As an industry, we have a marketing problem in
“The second part…is changing our product. One tech- general. We are a shadow industry, people don’t know
nology that my university is embarking on massively is what we are doing. We had a long-term programme in
the conversion of methane to hydrogen and carbon.” Austria to teach the teachers. We found that high school
There was something between green and blue hydro- teachers don’t know what oil and gas is so how will they
gen, added Thonhauser. “You can generate hydrogen tell a young kid what it is,” he stated.
from gas…very energy efficiently.” If it was used in the Thonhauser was very optimistic about COP28, as
place it was developed, transport was saved. The infra- it would be first event when (the industry) was at the
structure was in place, he added. table, “So if we can deliver and show we can do what
Thonhauser told his students to make a differ- we do every day in the context of the energy transition
ence by being part of the industry. “Everything we are we will have a good future ahead of us.”

OPEC bulletin 7–8/23

35
 Gala Dinner and Awards Ceremony

Gala Dinner and Awards Ceremony

OPEC Seminar

hosted by the Ministry of Mines and

Hydrocarbons, Equatorial Guinea

Speakers:
Haitham Al Ghais, OPEC Secretary General
Antonio Oburu Ondo, President of the OPEC Conference 2023, Minister of Mines
and Hydrocarbons, Equatorial Guinea
OPEC bulletin 7–8 /23

Moderated by:
John Defterios, Professor of Business, NYU, Abu Dhabi
Eithne Treanor, Founder and CEO, ETreanor Media
36
Omar Al Rawi, Member of Vienna’s City Council.

The Gala Dinner, which took place at the City Hall of

Vienna, opened with a stunning performance by the
“ATEM” agency called the “light art show,” which
depicted in a visually arresting way OPEC’s central mis-
sion and history.
In brief remarks, the President of the Conference
stated, for “Equatorial Guinea, the Ministry of Mines and
(l–r): Dr René Ortiz of Ecuador; Haitham Al Ghais, OPEC Secretary General; His Royal Majesty King
Hydrocarbons and GEPetrol, it is a great honour to host
Dr Edmund Maduabebe Daukoru of Nigeria; and Dr Álvaro Silva Calderón of Venezuela.
you all this evening.” A video providing information on
GEPetrol immediately preceded his speech.
Omar Al Rawi, member of Vienna’s City Council,
delivered welcoming remarks on behalf of the City of
Vienna, sending the best regards of the Mayor of Vienna,
Michael Ludwig.
This was followed by a tribute by the current
Secretary General to the former OPEC Secretaries
General who were present at the awards ceremony and
received special recognition from the Organization:
Dr René Ortiz of Ecuador; Dr Álvaro Silva Calderón of
Venezuela; and His Royal Majesty King Dr Edmund
Maduabebe Daukoru of Nigeria.
Dr Ortiz served as OPEC Secretary General from 1
January 1979 to 30 January 1981. In addition to his
OPEC bulletin 7–8/23

success in key energy positions within the Ecuadorian

government, he served as Ecuador’s representative Antonio Oburu Ondo, President of the OPEC Conference 2023,
to the OPEC Economic Commission Board and then Minister of Mines and Hydrocarbons, Equatorial Guinea.

37
 Gala Dinner and Awards Ceremony

OPEC Seminar

as Governor to OPEC, before then being appointed as

Secretary General two years later.
Dr Calderón served as OPEC Secretary General
from 1 July 2002 to 31 December 2003. He has had
an exemplary career serving his country, OPEC and the
global industry. Before coming to OPEC, he served as
Venezuela’s Minister of Energy and Mines. Earlier in his
career, Dr Calderón had the privilege to serve as a mem-
ber of the advisory team of Dr Juan Pablo Pérez Alfonzo,
one of our Organization’s founding fathers.
His Royal Majesty Dr Daukoru served as OPEC
Secretary General and President of the OPEC Conference
from 1 January 2006 to 31 December 2006. He also held
prominent energy posts in the Nigerian government,
including Presidential Advisor on Petroleum and Energy,
Minister of State for Petroleum Resources and Group
Managing Director of the Nigerian National Petroleum
Corporation.
Dr Carol A Dahl, Adjunct and Professor Emeritus at the Colorado School of Mines (l), accepted the OPEC
Award for Research from Haitham Al Ghais, OPEC Secretary General.
Awards Ceremony
As at past seminars, OPEC honoured distinguished
scholars and accomplished journalists who have made
outstanding contributions to the petroleum industry
and related areas during their lifetimes through its
2023 OPEC Award for Research and OPEC Award for
Journalism. In addition, this Seminar saw a number of
new awards: the Award for the Best Energy Research
Institute, the Award for the Best Energy Research Paper
and the Award for the Best Young Energy Professional.

OPEC Award for Research is given in recognition of a

career dedicated to the objective study and balanced
analysis of the energy sector.

Dr Carol A Dahl is Adjunct and Professor Emeritus

at the Colorado School of Mines. Dr Dahl received
a University of Minnesota PhD studying under
Nobel Economics Laureate Christopher Sims. She
widely disseminates her energy economics research
internationally through teaching, publishing, and
presentations.
Dr Ken Koyama, Senior Managing Director and Chief Economist at the Institute of Energy
OPEC bulletin 7–8 /23

Economics of Japan (l), accepted the OPEC Award for Research from
Haitham Al Ghais, OPEC Secretary General.

38
 Dr Ken Koyama is Senior Managing Director and
Chief Economist at the Institute of Energy Economics,
Japan (IEEJ). Economic and political analysis of the
world oil and gas market as well as energy security and
the geopolitics of energy, have been Dr Koyama’s main
focus in his research career since he joined IEEJ in 1986.

The OPEC Award for Best Energy Institute is given in

recognition of excellence exhibited in the continuous,
impartial and scientifically-based research of energy-
and oil-related issues.

King Abdullah Petroleum Studies and Research

Center (KAPSARC) is an advisory think tank within global
energy economics and sustainability, providing services
to entities and authorities in the Saudi energy sector.
Through their advisory services to the energy ecosys-
tem, KAPSARC’s experts provide day-to-day insights
and updates using a multidisciplinary team approach Fahad Alajlan, President of the King Abdullah Petroleum Studies and Research Center (l),
accepted the OPEC Award for Best Energy Institute.
to drive long-term value and deliver tangible results at
scale.

The OPEC Award for Best Energy Research Paper is given

in recognition of excellence exhibited in the objective,
critical and impartial research of oil and energy-re-
lated issues.

The research, paper ‘The value of OPEC’s spare

capacity to the oil market and global economy’ was writ-
ten by Dr Axel Pierru, Dr Hossa Almutairi and Dr James
Smith. The paper investigated the extent to which OPEC
has succeeded in stabilizing the oil market and related
implications for the world’s economy.

The OPEC Award for Best Young Energy Professional is

given in recognition of the steadfast commitment to
building a career dedicated to the objective study and
balanced analysis of the energy sector.

Dr Abdulaziz Salem Ahmed Al-Qasim is leading

CCUS and sustainability efforts within EXPEC ARC, Saudi
Aramco. He was instrumental in sowing the seed for
Dr Axel Pierru (l) accepted the OPEC Award for Best Energy Research
OPEC bulletin 7–8/23

Paper on behalf of the team.

39
 Gala Dinner and Awards Ceremony

OPEC Seminar

the first Hydrogen Programme that outlines a detailed

plan for hydrogen economy from upstream perspec-
tives. He has about 100 patents, including disclosed
and granted, published 70+ papers, including peer-re-
viewed ones, received 20+ prestigious awards and rec-
ognitions and deployed 10+ new technologies focused
on decarbonization and sustainability.
Dr Yousef Mohammad E Alshammari is CEO and
Head of Oil Research at CMarkits. He is an energy
researcher, consultant and media analyst on energy mar-
kets at AlArabiya news channel, who has been listed as
one of the world’s top 50 global energy analyst by Gulf
Intelligence. Dr Alshammari has been a member of the
energy experts group at the UN advising countries on
better strategies to make clean use of fossil fuels.

OPEC Award for Journalism

Dr Abdulaziz Salem Ahmed Al-Qasim, Saudi Aramco (l), Amena Bakr is Chief OPEC Correspondent and Dubai
accepted the OPEC Award for Best Young Energy Professional. Deputy Bureau Chief for Energy Intelligence. She
covers energy and politics related to OPEC Member
Countries. Prior to that, Amena was an Energy
Correspondent for Reuters news agency for six years,
posted in Dubai, Doha and Riyadh. She holds a BA in
business administration from the Arab Academy for
Science, Technology and Maritime Transport in Egypt,
with a major in management information systems.

Dr Yousef Mohammad E Alshammari, CEO and Head of Oil Research, CMarkits (l),
OPEC bulletin 7–8 /23

accepted the OPEC Award for Best Young Energy Professional.

40
Amena Bakr was awarded the OPEC Award for Journalism.
Ministers, the Secretary General and OPEC
Award winners gather for a group photograph.

OPEC bulletin 7–8/23

41
 COP President address

COP28 President-Designate
OPEC Seminar

speaks at OPEC Seminar via video

Dr Sultan Ahmed Al Jaber.

On the second day of the 8 th OPEC International well as its unwavering support of the COP28 Presidency.
Seminar, Dr Sultan Ahmed Al Jaber, COP28 President- Creating a sustainable and inclusive energy transition was
Designate, and United Arab Emirates Special Envoy for one of the most complex issues facing mankind, he said.
Climate Change and Minister of Industry and Advanced “The science is telling us that we have just seven
Technology, delivered a video address. years to make a 43 per cent reduction in carbon emis-
OPEC bulletin 7–8 /23

He thanked OPEC for the essential role it played in sions to keep the aspiration of 1.5 celsius within
balancing energy markets, promoting global prosperity reach. In the same timeframe, energy demand will only
and advancing the goals of sustainable development, as increase, as an additional half a billion people join our

42
planet. And, according to the most recent OPEC data, This starts with national-level policies, including
as economies continue to grow, energy demand will the updating of NDCs to accelerate 2030 trajectories to
increase 23 per cent by 2045. come in line with net-zero targets by 2050.
“Therefore, the critical challenge of this century is The United Arab Emirates is setting an example with
to dramatically reduce emissions, while maintaining its third NDC update to its second NDC, which pushes
robust sustainable development.” emissions reductions to 40 per cent compared with busi-
Al Jaber stated this meant a system-wide transfor- ness as usual, an almost ten per cent improvement over
mation of entire economies, which was challenging from the previous update.
a political, economic and social standpoint. “At the same time, we have announced a 54-bil-
In addition, it was an engineering challenge, he con- lion-dollar capital investment programme over the next
tinued, which was why the most skilled people from all seven years to triple renewable and clean energy capac-
relevant industries, including the oil and gas industry, ity, significantly expand our hydrogen production and
must be leveraged. completely phase out coal from our energy mix.”
“To get there, we need to rapidly build a new clean He called on governments to stimulate the adop-
energy system, while comprehensively decarbonizing tion of clean energies, commercialize the hydro-
the system we rely on today.” gen value chain, make carbon capture viable and
Al Jaber outlined what he saw as the role of the oil affordable and incentivize R&D regarding battery
and gas industry in the energy transition. This included storage, along with energy efficiencies and upcoming
the entire industry becoming aligned to achieve net-zero technologies.
by or before 2050. Next, he wanted to see acceleration Al Jaber said that investment was crucial to meeting
of an industry-wide commitment to reach net zero meth- these goals, and even though last year a record $1.5 tril-
ane emissions by 2030. He also called for monitoring, lion had been invested in clean technologies, the num-
measuring and validating progress at every step of the ber needed to be three times bigger.
way. Finally, allocating capital at scale for clean energy The final critical factor for success was capacity
solutions was essential. building and skills development, so that young people
“We can all make a positive difference, especially would be trained for the jobs of the future.
when it comes to helping to de-carbonize heavy emit- “Because we must deliver climate action and eco-
ting sectors, the hardest to abate scope 3 emissions,” nomic opportunity at the same time. We must hold back
he said, adding, “Building a new energy system can only emissions, not progress. And we must build the new
happen at speed and scale with united action on the energy system…before we unplug the energy system of
supply and the demand side together. When it comes today.
to supply, we need to massively scale up clean energies “The energy transition represents the greatest leap
by 2030, triple renewable capacity to 11,000 gigawatt in social and economic development since the first
and double hydrogen production to 180 million tons.” industrial age. It represents a massive opportunity for
He added that the phase down of fossil fuels was this industry to redefine its future…and contribute to the
inevitable, but could not be irresponsible. future of humanity. And just as this industry lifted mil-
“We must manage this transition, ensuring energy lions out of poverty and created sustainable prosperity
security, accessibility and affordability, while also sus- in the past, I know it can do so again.”
taining socioeconomic development. The speed of the Instead of being viewed as part of the problem, the
OPEC bulletin 7–8/23

transition will be driven by how quickly we scale-up industry must step up and change the script to show the
zero-carbon alternatives. It will also depend on strong world how essential it was to the solutions of the future,
demand signals,” he said. concluded Al Jaber.

43
 Ministerial session 3

Ministerial session 3
OPEC Seminar

Pathways to just energy

transitions

Speakers:
Tarek El Molla, Minister of Petroleum and Mineral Resources, Egypt
Ana Fontoura Gouveia, Secretary of State for Energy and Climate, Ministry of
Environment and Climate Action, Portugal
Dr Diamantino Pedro Azevedo, Minister of Mineral Resources and Petroleum, Angola
Ana Palacio, Former Minister of Foreign Affairs, Spain
OPEC bulletin 7–8 /23

Moderated by:
John Defterios, Professor of Business NYU, Abu Dhabi

44
One of the major future challenges is how to construct sustainable and reliable energy
systems. It requires a delicate balance between various targets, such as reducing emissions,
energy availability and affordability, as well as energy security. Focusing on only one of these
over the others can lead to unintended consequences, such as market distortions, heightened
volatility and even energy shortfalls. The science tells us that tackling emissions has many
possible paths. There is no one-size-fits-all solution, for countries or industries. The narrative
that the energy transition from oil and other fossil fuels to renewables is misleading and
potentially dangerous to a world that continues to be thirsty for all energy sources. It is vital
to look at the role of R&D and technology to help improve the environmental credentials of
all energies, and thus help move towards an inclusive and just energy transition for all.

Moderator John Defterios, Professor of Business NYU,

Abu Dhabi, started the session by addressing Tarek El
Molla, and pointing out that when hosting COP27, the
country had brought forward a landmark focus on loss
and damage, as well as brought Africa fully into the
agenda. Defterios asked El Molla for his views on Egypt’s
natural gas discoveries, the energy transition, the push
for decarbonization and the challenge of energy access.
He queried: “Can we pull off the energy trilemma?”

Tarek El Molla
Minister of Petroleum and Mineral Resources of Egypt

Tarek El Molla stated that it was very important for every Tarek El Molla.

country to define its roles and responsibilities; there

must be common goals, but different responsibilities. demonstrate that they could be part of the solution, he
“Sharm El Sheikh was a landmark COP, a very success- added.
ful COP because we were able to achieve several goals. “We were able to showcase how we can manage the
First, we were representing Africa…so we were able to energy transition successfully. I think COP27 also ended
demonstrate the needs of our African continent… we with a clear identification of a loss and damage fund for
needed to highlight the importance of availing of their the first time ever, whereby countries not responsible for
resources to develop their needs.” emissions were compensated by the countries making
Thus, when talking about renewables and the tran- these emissions. It was an implementation COP and I
sition for people who do not have access to electricity think the road is paved for our brothers in the Emirates
or clean cooking, it was important to note that Africans in this coming COP28 to capitalize on the achievements
needed to develop their natural resources first, in par- we have made.”
allel with revenues to be able to develop their journey Molla added that Egypt must update its energy strat-
for the transition, he said. egy to include very important technological developments,
OPEC bulletin 7–8/23

The second point, he said, was that for the first time such as low-carbon hydrogen and other advancements in
ever at a COP oil and gas companies and leaders were renewables. The country now had a strategy to have 42
welcomed. Thus, companies and this industry, could per cent of its energy mix from renewables by 2030 rather

45
 Ministerial session 3

than 2035. Currently, 65 per cent of Egypt’s hydrocarbons world but at the same time we want to ensure jobs, we
OPEC Seminar

were in the form of natural gas, which was the elected and want to ensure security of supply, and we want to ensure
chosen cleanest hydrocarbon fuel, he said. affordability.”

Ana Fontoura Gouveia Diamantino Pedro Azevedo

Secretary of State for Energy and Climate, Ministry of Minister of Mineral Resources and Petroleum, Angola
Environment and Climate Action, Portugal
Diamantino Pedro Azevedo stated his goal today was
Ana Fontoura Gouveia shared the Portuguese experi- to help the audience understand that for the energy
ence. She said that the country had started its energy transition to be just there must be a paradigm change.
transition more than 20 years ago with onshore “A fair, well-balanced energy transition, taking into
wind and this had account this specific moment and the needs of a coun-
allowed it to better try, cannot be imposed on anyone… We have 600 mil-
manage the recent lion people in African living in energy poverty. An energy
energy crisis. transition imposed on them is not going to improve the
“A few days situation, but it is going to make energy poverty even
ago a new goal worse,” he said.
was announced for Angola is an oil-producing country, but its energy
renewable incor- matrix did not depend on oil, rather on hydroelectric
poration into the energy resources, he clarified. About 60 per cent of
energy mix; it will Angola’s energy was produced in a clean fashion and
be 85 per cent in
2030, it is already
60 per cent and
that means we
need to acceler-
ate the path of the
Ana Fontoura Gouveia. transition. We will
do it by investing
a lot in solar technology and offshore wind.”
An auction for offshore wind, which would do a lot to
stabilize the system, will be launched this year and the
country is investing into floating technology, she said.
“On floating technology there is a lot we can learn from
the oil industry because the floating platforms are not
that different.
“In Portugal, we are focusing on renewables because
these are our endogenous resources, this is how we can Diamantino Pedro Azevedo.
ensure security of supply and how we can ensure afforda-
ble energy prices for families and industries and this is
the way to attract new industries to the country.” the country wanted to make this energy matrix even
Fontoura Gouveia stated that it is very important to cleaner.
involve younger generations, adding they want to be part “But we do not want to do this at the cost of our main
of this debate and transition. “They have indeed strong source of foreign currency, which is oil. We have to do
OPEC bulletin 7–8 /23

views on the oil and gas industry and its important to this in a well-balanced way to keep oil as the driving
engage in dialogue, because I think what the younger force of our economy and make sure we will have more
generations want is what we all want, a sustainable value from the oil we produce in our country.

46
 “That is the problem in Africa, we
are the producers of the raw material,
oil and other minerals, and we export
them and we import products and this
is something that has to change. In my
own country, we export oil and import
80 per cent of oil derivatives. If we want
a fair transition, we have to look at this
and understand Africa and my country.”
The energy transition has to take place
with us all working together for the good
of Africa, he said, because Africa was the
continent growing the most and it was a
great source for the energy transition.

Ana Palacio.

Ana Palacio Big and small oil companies should prove them-
Former Minister of Foreign Affairs, Spain selves at COP28 by setting standards and benchmarks,
along with the independent auditing of benchmarks, she
Ana Palacio pointed out that the plurals in the title of said. “This would be the success of the COP.”
the session were important “pathways to just energy Palacio also highlighted funding and institutions.
transitions”, because it clarifies that one size does not “The World Bank should concentrate on making tools
fit all. “In Europe, we do not have an issue of growing for investment…there are instruments, but the World
population, or bulging middle classes, so we are con- Bank does not finance anything but renewables and this
centrating on energy efficiency. This is our transition, is absolutely unacceptable,” said Palacio, who used to
energy efficiency and CO2 efficiency.” work with the World Bank.
The EU was betting on renewables because it “One of the important messages I am getting from
was important to the continent’s independence, said this conference is that we need a united voice from
Palacio. Currently, 90 per cent of the continent’s energy Africa,” she added.
was imported. Palacio said that Europeans saw only
one pathway to one energy transition, but that this was
wrong. “Europeans buy African gas to make electricity
but they will not contribute to financing any gas-gen-
erated electricity in these countries, only renewables,
because this is our dogma. What COP28 has to do is
overcome the dogma that there is just one transition.”
The polestar is not renewables, it is cleaner air, she
said, adding that oil and gas were part of the solution.
She stated, “One friend rom Mozambique told a German
minister, ‘We Africans, we are for decarbonization, but
we have to carbonize a little first.’ That is the challenge.”
A narrative is needed that would bring youth along
on the journey, she added. “They need to understand
that oil and gas are part of the solution and frankly a big
part, because otherwise there is no way out.”
OPEC bulletin 7–8/23

“We need more financing, but not just funds. We need

de-risking of investment in Africa and we need transferral
of technology. This is what should come in this COP.” John Defterios.

47
 High-level roundtable 4

High-level roundtable 4
OPEC Seminar

Eradicating energy poverty

Speakers:
Demetrios Papathanasiou, Global Director for the World Bank’s Energy and
Extractives Global Practice, The World Bank
Dr Omar Farouk Ibrahim, Secretary General, African Petroleum Producers’
Organisation (APPO)
Dr Fereidun Fesharaki, Founder and Chairman, Facts Global Energy
Mele Kyari, CEO, NNPC
OPEC bulletin 7–8 /23

Moderated by:
Richmond Osuji, President, Lipservice Communication and Resources Limited

48
Action is required more than ever to help eradicate energy poverty amid disruptions related
to the impacts of the COVID-19 pandemic, geopolitics, and the global economic situation. At
present, the world is falling behind in the attainment of UN Sustainable Development Goal
(SDG) 7, related to energy poverty eradication. For example, the COVID-19 pandemic had
widespread human and socio-economic ramifications, not least for developing countries
and vulnerable groups who feel the effects acutely. International cooperation and finance
are fundamental factors for achieving progress on SDGs, including on universal energy
access, so that no one is left behind as the world looks at a just and inclusive energy
transition.

The session began with the moderator, Richmond Osuji, Papathanasiou said the bank was doubling its
highlighting individual examples of energy poverty chal- efforts in the electrification area and it was vital to have
lenges. It was a reminder to all of us, he said, that there the right policies in place. He added that to realize SDG
were real people behind the billions without energy 7 by 2030, two thirds of Africa needed to be intercon-
access, a challenge that only energy security could solve. nected with electricity, and the other third had to have
The session also saw a variety of questions related a decentralized source.
to tackling the energy challenge of eradicating energy Energy access had to be first and foremost, he said,
poverty. These included: what are the obstacles facing and “whatever are the most economic options should
efforts to eradicate energy poverty, and have these been go ahead.”
exacerbated by COVID-19? And how can progress toward
universal energy access be accelerated and allow for
synergies between a sustainable energy system transi-
tion and resilient societies?

Demetrios Papathanasiou
Global Director for the World Bank’s Energy and
Extractives Global Practice

The COVID-19 pandemic that delayed many activities to

do with alleviating energy poverty and electrification,
said Demetrios Papathanasiou. He added: “In terms of
access to modern energy services and SDG 7, progress
actually stalled for two years.”
In talking about electrification, he specifically
Demetrios Papathanasiou.
focused on sub-Saharan Africa and highlighted a num-
ber of stark facts. “Today, two out of three health facil-
ities in Africa do not have access to electricity, two out
of three primary schools do not have access, and essen-
tially one out of two people in Africa do not have access Dr Omar Farouk Ibrahim
to electricity.” Secretary General, APPO
It was vital that we moved forward with electrifica-
OPEC bulletin 7–8/23

tion, he said, but added that although the pandemic “This is the first time an African institution has been
looked to behind the world, the economic crisis today invited to the OPEC Seminar, I think this is very
and rising inflation were headwinds. important”, began Dr Omar Farouk Ibrahim. He also

49
 High-level roundtable 4

OPEC Seminar

Dr Omar Farouk Ibrahim. Fereidun Fesharaki.

highlighted the positive outreach of the United Arab Fereidun Fesharaki. The only question, he added, was
Emirates and COP28 to African countries and its national the composition of the energy mix.
oil companies, to better understand the challenges the From a climate change perspective, we need energy
continent faced. demand to be met by new energy, he said, but that was
“Africa is now sitting at the table,” he said, before only one perspective. “The rich world has the luxury of
adding it was vital that the continent did not continue focusing solely on climate change, because the basics
to play the victim. “We have to show practically what are taken care of. It is a new religion in some parts of
we are doing. We cannot continue to rely on outsiders the rich world.
to solve our problems for us.” “The poor world, however, has to focus on imme-
He stated that APPO had been examining the ques- diate concerns of food and healthcare, they may care
tion of how the energy transition would affect Africa as a about climate change, but quite legitimately this is just
continent. He emphasized four main challenges around one of their many concerns.”
financing, technology, markets and expertise, and once Fesharaki said the tensions would not go away and
more, underscored the need for solutions to come from pretending they would, could not solve anything. He
Africa. added that cleaner technologies were a central part of
In terms of oil and gas, he said that they still had the solution in his view, and these new technologies
an important role to play for African economies and the must be transferred to the developing world at low cost
global economy too, and noted the agreement between to the poorer countries.
APPO and the African Export-Import Bank to set up the In a passionate ending, he said, “we cannot expect the
Africa Energy Bank. He hoped that the bank would be poor world to stay in energy poverty, to save the world …
in place by the end of the year. Those living in energy poverty must use a combination of
The bank’s key objective is to finance oil and gas hydrocarbons and new energy, probably for a long time.”
operations in Africa, providing a funding source for oil
and gas projects on the continent after some interna-
tional financing institutions started scaling back their
funding for such projects. Mele Kyari
CEO, NNPC

For most developing countries, the key was access to

Dr Fereidun Fesharaki clean, modern energy, said Mele Kyari. “In my country
Founder and Chairman, Facts Global Energy of Nigeria, 70 per cent of the people do not have access
OPEC bulletin 7–8 /23

to clean cooking fuels,” he added. He also highlighted

“People want to grow, they want to prosper, so there that Africa only contributed about three per cent of the
is no doubt that energy demand will increase”, said Dr world’s annual global emissions.

50
Mele Kyari. Richmond Osuji, President, Lipservice Communication and
Resources Limited.

He said the focus must be on the challenges of today, energy companies on the continent, “to see how we
stating there must be a replacement mechanism where make enormous energy resources available to help alle-
emissions could be reduced, and energy poverty dealt viate energy poverty in Africa as a matter of business,
with too. In this regard, in Nigeria, “we are looking to and as a matter of necessity.”
deepen the utilization of natural gas as a transition fuel.” He added the continent “needs a regional framework
Leading a large energy company in Africa, noted where resources are available. And ultimately, this then
Kyari, it was important that NNPC worked with other needs to be part of the global community.”

OPEC bulletin 7–8/23

51
 High-level roundtable 5

High-level roundtable 5
OPEC Seminar

The pace of energy transitions

and climate change policies

Speakers:
Carlos Garibaldi, Executive Secretary, Association of Oil, Gas and Renewable Energy
Companies of Latin America and the Caribbean
Majid Jafar, Chief Executive Officer, Crescent Petroleum
Bernard Looney, Group Chief Executive/CEO, bp
Tan Sri Tengku Muhammad Taufik, President and Group CEO, Petronas
Balaji Krishnamurthy, Vice President for Strategy and Sustainability, Chevron
Simon Stiell, Executive Secretary, United Nation Framework Convention on Climate
Change
OPEC bulletin 7–8 /23

Moderated by:
Eithne Treanor, Founder and CEO, ETreanor Media

52
Striking a balance between satisfying the energy needs of the global economy and building
a comprehensive, resilient, sustainable, and climate-friendly energy system that supports
and enables sustainable development is one of the key challenges of this generation. Many
possible response actions are available across the world, with an increasing number of
climate change policies emerging subject to national circumstances, many of which are
relevant to the energy sector. Besides national policies, a stronger role for international
climate change policy has been called for recognizing that the choice of a climate mitigation
pathway should not be binary — namely, hydrocarbons or renewables — but an inclusive
and just approach. Recently this has become more evident, but there remain divergent views
on the pace for energy transitions.

addition to more coal being used,

Carlos Garibaldi which had resulted in increased
Executive Secretary, Association of Oil, Gas and emissions. Jafar argued that a
Renewable Energy Companies of Latin America and the policy of discouraging investment
Caribbean in oil and gas madd no sense.
Starving supply while demand
The Executive Secretary noted that the region he rep- grew could have serious conse-
resented was suffering from a lack of investment in quences. Europe had been return-
renewables. Cash flows from developed countries to ing to coal and subsidizing energy,
support developing countries had not been sufficient. while encouraging others not to
Latin America was blessed with a large ‘Sun Belt’ and do so.
wind potential. The region also possessed the poten- Jafar stressed that the nar-
tial for growth in green hydrogen. He emphasized that rative of the transition had been
hydrocarbons continued to play a fundamental role for dominated by the myth that the Carlos Garibaldi.
many countries in the region, including in poverty alle- world could survive 100 per cent
viation. Countries in the region had the right and obli- on solar and wind power. This
gation to develop their resources in a sustainable man- was impossible. Natural gas and
ner and properly monetize them. Hydrocarbons would nuclear were the cleanest forms
continue to be developed in parallel with increasing the of energy, yet activists opposed
relative weight of renewables. The region would be very them. There needed to a balance
significant in the race to secure critical minerals. That between all the 17 Sustainable
race would have ramifications for sustainability espe- Development Goals (SDGs). He
cially if critical minerals are dredged from the seabed. stressed that there was a per-
ception that global institutions,
including the UN, appeared to be
prioritizing some SDGs over the
Majid Jafar others.
Chief Executive Officer, Crescent Petroleum He said that those who were
calling for an end to oil and gas or
Jafar described the consequences of a failure to reducing oil and gas consumption Majid Jafar.
OPEC bulletin 7–8/23

address all three components of the energy trilemma. often overlooked the multitude of
A lack of investments in the oil and gas industry had ways that petroleum and petroleum
resulted in price spikes and energy insecurity, in derived products are used in daily life.

53
 High-level roundtable 5

OPEC Seminar

Bernard Looney. Tan Sri Tengku Muhammad Taufik.

He emphasized that those in energy poverty were

focused on the realities of daily living. To some, they
Bernard Looney put more weight on security and affordability than sus-
Group Chief Executive/CEO, bp tainability. Many Asian countries had ambitious climate
targets and plans.
The CEO noted that the events of the last couple of years
had reminded people that energy was the lifeblood
of society. He said that we needed to build a cleaner
energy system and a system that provided secure and Balaji Krishnamurthy
affordable energy. bp approached this through ‘and not Vice President for Strategy and Sustainability, Chevron
or’ strategy. bp invested in both the energy system of
today, namely oil and gas, and that of the future. If we Chevron had similar views on striking the right balance
didn’t invest in today’s needs, there would be a mis- in the energy trilemma. There was a need to harness
match of supply and demand. Oil and gas were the life- the industry’s expertise to clean the energy systems.
blood of today’s energy system. One could not focus Chevron was continuing to invest in the energy sys-
on one KPI at the expense of others, as it could create tems of today and lower carbon technologies. It was
a problem somewhere else. Energy security was a real- also working on developing new energy business lines,
ity that needed to be addressed. The energy trilemma including renewables, carbon capture and hydrogen.
was a means of bringing all stakeholders to the table.

Tan Sri Tengku Muhammad Taufik

President and Group CEO, Petronas

For both demographic and economic reasons, Asia

would play a pivotal role in the energy future. Two of the
world’s three largest economies were in Asia. Asia would
be the centre of energy demand growth in the future.
Many climate activists did not recognize the needs of the
large burgeoning economies in Asia. Taufik stressed that
Petronas was not a climate denier, in fact it was com-
OPEC bulletin 7–8 /23

mitted to investing in renewables. He noted that Asia

would be the first to suffer from a climate emergency.
What was critical was striking the right balance between
the components of the energy trilemma. Balaji Krishnamurthy.

54
Simon Stiell
Executive Secretary, United Nation Framework
Convention on Climate Change

Stiell noted that some had suggested that he could not

attend the Seminar, suggesting there was a conflict
of interest. He stressed the energy transition process
needed to be inclusive, and that all stakeholders needed
to come together to address the climate challenge.
He emphasized credibility and integrity. He sug-
Simon Stiell.
gested he was not on the same page as some of the
oil and gas majors, noting that the CEO of Shell, Wael
Sawan, had said in an interview that cutting production He stressed that the Paris Agreement was a global
of oil and gas would be ‘dangerous and irresponsible.’ goal. He said that he felt what was missing in the discus-
The Executive Secretary said that he believed that this sion was a shared view on the ‘how’ we do this, adding
was not true and was an irresponsible statement. that we need to go beyond realpolitik.

OPEC bulletin 7–8/23

55
 Ministerial session 4

Ministerial session 4
OPEC Seminar

Diversifying energy economies

Speakers:
Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, United Arab
Emirates
Puot Kang Chol, Minister of Petroleum, South Sudan
Bruno Jean-Richard Itoua, Minister of Hydrocarbons, Republic of the Congo

Moderated by:
Bob McNally, President, Rapidan Energy Group
OPEC bulletin 7–8 /23

56
Increasingly stringent climate mitigation policies and actions could have important
implications for energy exporting economies and their right to sustainable development.
Economic diversification and resilience could provide innovative approaches to mitigate
risks and offset any impacts arising from the implementation of climate response measures.
Some countries are well under way in diversifying their economies, but it is clear that
alternative pathways are being followed due to diverse economic conditions, comparative
advantages, priorities, capabilities and national circumstances. All available approaches
and viable options that could support economic diversification and enhance resilience, in
light of resource availability, should be considered in order to create a more predictable
environment for investment, trade and technology advancement, while offering the wider
benefits needed to set the world on a sustainable and fair pathway.

Moderator Bob McNally, Rapidan Energy Group, stated

that the three countries in attendance were at the fore-
front of energy and economic diversification and the
transition. He commented on how important it was to
combine economic diversification with the transition. He
first addressed Suhail Mohamed Al Mazrouei, Minister
of Energy and Infrastructure, United Arab Emirates. He
asked for Al Mazrouei’s perspective as a representa-
tive of a successful diversifying economy and leader in
the transition.

Suhail Mohamed Al Mazrouei

Minister of Energy and Infrastructure, United Arab
Emirates Suhail Mohamed Al Mazrouei.

Suhail Mohamed Al Mazrouei stated that the United “Here are some numbers to shed light on the role we
Arab Emirates had started to invest every dollar it could are playing as an export destination linking east and west,
into creating one of the world’s largest sovereign wealth especially with our brothers in Africa: Non-oil foreign
funds. The country also invested in managing trade trade in 2022 jumped 17 per cent compared with 2021 to
through port management and other means, which gave $599 billion. The outflow, FID (foreign direct investment)
it extensive expertise in certain areas, so that it became in 2021 saw growth of 19 per cent compared to 2020 and
an operator in so many parts of the world. reached $22.5 billion. The inflow of FID to the United Arab
“That led us to the energy transition 16 to 17 years Emirates was growing by 4 per cent compared with 2020
ago when we thought gas is finite and we are depend- and in 2021 was at $20.7 billion. Those numbers show
ent on gas for electricity. Our leadership back then put you that the United Arab Emirates has not only diversified
a plan in place for diversification. We diversified our its own economy but is also…investing billions to enable
economy and energy sources,” he said. other countries to do the same,” he said.
OPEC bulletin 7–8/23

Today the plan was to have 32 per cent clean sources Many of these investments had gone to renewable
of energy in place by 2030, and 38 per cent by 2045, energy, he continued, adding that the United Arab Emirates
stated Mazrouei. had invested $50 billion in more than 70 countries. “We

57
 Ministerial session 4

are intending to invest another $50 billion in green tech-

OPEC Seminar

nology/energy in the next ten years or less. That gives

you a magnitude of the aspiration. It is to enable trade to
expand between east and west, north and south and we
are building the infrastructure for it and looking forward to
cooperating with all countries we are currently investing in
or will be investing in in the future,” he said.
“The key is inclusiveness, and what we are trying to
do at COP28… one thing that is very important is that we
need to hear everyone. There is no path that is going to
fit us all, we are at different paces and we have to rec-
ognize that certain countries will have to grow in order
for them to diversify… but maybe we need the resources
in Africa for us to transition to net-zero,” he added.
He used the example of the United Arab Emirates,
which was moving 100 per cent to relying on gas in its Puot Kang Chol.
recently adopted energy strategy, “We will be saving
more than $190 billion over 30 years. another as people who are affected and who have the
He added that there were more than 200 countries same fate… For us to diversify our economies, we need
in the world, and another 20 to 30 needed to step up. to sit at the same table as equal partners,” he said.
“If we are serious about the pace, we need to come “We all agree there is a need to transform, we all
and do projects not just talk or lecture….. We need inclu- agree in Africa in particular that 600 million have no
siveness, we need everyone to speak out, that’s what access to electricity. Some would say they have no
would make COP28 the most inclusive COP ever…to access to clean cooking gas, but some don’t even have
put forward some true numbers, and checks and bal- something to cook, let alone cooking it clean,” he said.
ances on the progress. Then we can truly monitor if we He added that South Sudan did not have reliable or
are achieving or if we are falling behind. It looks like we accessible or affordable power. “The only means for a
are falling behind if we are not addressing all of those country like South Sudan is to continue the exploitation
things we are talking about,” he said. of our fossil fuels so we get the resources to develop the
other sectors. Our economy depends on fossil fuel more
than 90 per cent.”
South Sudan had an opportunity, he added, “It has
Puot Kang Chol rivers, we can create dams, we can create hydro… we have
Minister of Petroleum, South Sudan the legal framework in place. But as a government our first
responsibility is to exploit the resources at hand, and at
Puot Kang Chol said South Sudan was the youngest coun- the moment that is fossil fuels. So we are asking others
try in the world. For one to transition, one must start from to come invest, generate resources and income here and
somewhere. For a country like South Sudan, there was we will use this to develop other sectors.”
nowhere to transition from, as it was beginning afresh. Chol said that a 10 mb/d refinery that was built
“It’s important to have access to resources, we need could not function because there was no road to move
them to be able to venture into other sources of energy, the product and limited storage capacity, so a shutdown
and we need access to the technology. Some countries of the refinery had been ordered until a means could be
are making it difficult for others to have access to tech- put in place to move the product.
nology. It has to do with politics. There must be coopera- Another example is that the country was told to stop
tion between countries and governments and with inter- importing cars using fossil fuels. Chol had a friend who
national financing institutions and other governments.” was in Niger and wanted to go to Chad. Since there was
OPEC bulletin 7–8 /23

“Absent that, it will be difficult for countries, par- no road, he had to fly from Niger to France and from
ticularly from my continent, to really move at the same France to Chad, even though it would only take two
speed as others are moving. We must recognize one hours by land.

58
 “If I have an electric car and nowhere to charge on according to the situation of the country, stakeholders,
the way, what do I do? What is a priority elsewhere may etc,” he added.
not be a priority in another location. Not because we Itoua stressed that aside from investing in oil, the
don’t want to accept this, but someone is ahead of us focus must be placed strongly on gas, as it was no longer
by some kilometres, and for us to get there we have to meant to support the transition, but rather had become
walk the same kilometres,” he said. a target fuel, “which is a new and huge step. It is a solu-
The whole of the African continent emitted less than tion like wind, solar and hydro,” he added.
five per cent of greenhouse gases, but Europe emitted The countries in OPEC have the same position when
more than ten per cent, the US more than ten per cent, it comes to dialogue, said Itoua. “I am very happy to
and China more than 20 per cent, he stated. have OPEC+, and so many other producing countries
“Where is the polluter pay principle here? You have outside of OPEC+. We are happy to bring them inside just
developed your cities by using fossil fuels and last year to talk and find the same position for the benefit not just
we were in Houston and were told ‘you must stop’. My of one or two countries,
response is that Houston was built by money from fos- but the world economy.”
sil fuels, and now you’re telling me to stop, telling me Investors are strongly
when I get sick I should not go to hospital because I interested in any profit-
don’t have money to build that hospital,” he said. able project, no matter
where it was, said Itoua.
More and more countries
in Africa had discover-
Bruno Jean-Richard Itoua ies of oil and gas, big
Minister of Hydrocarbons, Republic of the Congo discoveries.
“Maybe one day we
Bruno Jean-Richard Itoua stated that diversifying while will have 52 African coun-
being in an energy transition was an issue in developing tries producing oil and
and exporting countries. “In reality the problem is not to gas. Investors are com-
diversify…the issue is not that our population doesn’t ing, we see them, we
want the transition, but they need development… First, explain to them, we try
we want to ensure social and economic growth…Apart to provide the best legal Bruno Jean-Richard Itoua.
from petroleum we have everything else. We have soil framework, but they tell
that is fertile, we have sun, we have the sea, forest. We us there are pressures
have nice tourism sites, and ambition to transform our from government on them to stop investing so much in
natural resources through industry,” he said. oil and gas, especially in Africa. There is pressure from
“We have to continue to finance petroleum and governments on banks to stop providing money for that.
gas in order to stimulate diversification… And we have That’s why we decided to establish an African energy
a new challenge, the energy transition…first we have bank.”
to invest in technology because we need technology in Itoua finished by saying, “We should not need to
order to make a green petroleum and gas industry and advocate for Africa, because Africa regarding the climate
then invest in renewables. change issue/disaster has never been the problem, we
“I live near the Congo River, and I don’t see invest- are the victim. We have oil, we have gas, we have big
ment into renewables. I don’t see dams for hydro, rivers, we have the sun, we have wind, we have a big
financing for solar or wind, and hydrogen is just begin- population, a good market, a young population that are
ning. There are 600 million who don’t have electricity. becoming more educated, we are having more and more
With this path we cannot get to the transition,” he said. stability…the world should not see us like beggars.
“we have had very good conversations and pan- “We are solution providers. We should talk not
elists, and I am very happy because I see much pro- between someone on a humanitarian basis and another
OPEC bulletin 7–8/23

gress on having common views on the transition. I think who needs help, we should talk as very good partners,
everyone agrees that we need a just and equitable tran- and Africa is today one of the best partners for the cli-
sition. We will not have one transition, but transitions mate change and energy transition issue.”

59
 High-level roundtable 6

High-level roundtable 6
OPEC Seminar

The role of international cooperation

in diversifying economies

Speakers:
Joseph McMonigle, Secretary General, International Energy Forum
Dr Amrita Sen, Founder and Director of Research, Energy Aspects
Ibrahim Al-Muhanna, President, Saudi Energy Consultants
Charif Souki, Co-founder and Executive Chairman of the Board, Tellurian Inc.
Paulino Jerónimo, President, National Oil, Gas and Biofuels Agency, Angola
OPEC bulletin 7–8 /23

Moderated by:
John Defterios, Professor of Business, NYU, Abu Dhabi

60
Economic diversification and enhancing economic resilience can be achieved through a range
of pathways. Today, countries find themselves at different stages of economic development and
diversification, and with varying capabilities and resource availability, all of which need to be taken
into account. International cooperation and multilateral fora could play a key role in aiding the
diversification of energy exporting and importing economies through the facilitation of knowledge
sharing, technological exchanges, as well as in the energy space through actions aimed at
improving market stability. Furthermore, the related challenges of sustainable development,
addressing climate change and ensuring energy security will require widespread engagement at
a multinational level, further underscoring the paramount importance of international dialogue.

The moderator, John Defterios, started his introduction

by saying that the final session on international coop-
eration and diversification was an apt one on which to Joseph McMonigle
end and wrap up the key elements of the past two days. Secretary General, IEF
He said: “You cannot have a smooth energy transition,
realistic investment into new resources, whether oil, The population of Africa grew every two years about as
gas or renewables, without the correct architecture of much as a country like France or Thailand, said Joseph
funding. At the heart of this is a diversification and an McMonigle. It underscores the dramatic growth on the
international cooperation conversation.” African continent, which will evidently translate into
He added that there had been much talk through- expanding energy demand.
out the Seminar on the needs of developing countries At the same time, however, said McMonigle, Africa
in the transition. He asked the question, how could the was a continent today where access to energy was lim-
energy transition be accelerated and, at the same, how ited at many different levels. In providing perspective on
could developing countries be supported in their eco- this, he added, “the energy consumption of Heathrow
nomic and social development? airport is greater than the energy consumption of the
entire country of Sierra Leone.”
It was important that everyone understood this, par-
ticularly in the west, he said. “There needs to be a sin-
gular focus on fundamental energy access and afforda-
bility issues.”
In this regard, he said: “One of the most important
things is reforming or rethinking how multilateral lend-
ing agencies approach the whole issue of hydrocarbon
project financing. Essentially, now they are banned, with
a few exceptions. The energy crisis should be an exam-
ple, a catalyst to really rethink these issues.”
It was a call heard from a number of speakers in the
previous session. He added that “developing countries,
they need to industrialize … So we need to manage the
transition, we need to make progress and take people
along with us. And we still need to invest in hydrocarbons.”
Joseph McMonigle. Looking ahead to COP28 in the United Arab
OPEC bulletin 7–8/23

Emirates, he stated: “I am hopeful the upcoming COP

will focus on progress, not on perfection.”

61
 High-level roundtable 6

OPEC Seminar

Dr Amrita Sen. Ibrahim Al-Muhanna.

Dr Amrita Sen Ibrahim Al-Muhanna

Founder and Director of Research, Energy Aspects President, Saudi Energy Consultants

Dr Amrita Sen began by highlighting that there had Looking at the OPEC+ grouping, Ibrahim Al-Muhanna
been a level of hypocrisy, particularly in Europe, said that “you need cooperation with Russia, and
when it came to investments in fossil fuels. She said, other producers.” He specifically recalled how OPEC+
“Europe had been telling investment banks in Africa had helped to rescue the market in April 2020, and
that you cannot finance fossil fuel investment, then noted the help of producers even beyond the OPEC+
the narrative changed to, you can only finance fossil group.
fuel investment, as long as you export what you are He said that he could not imagine an oil market
producing to Europe.” without some form of coordination, highlighting that
She added that in Europe and the US an enormous through much of its history there had been some form,
amount of fossil fuels continued to be consumed, but for example, the Texas Railroad Commission and the
that there was a prohibition on the financing of fossil Seven Sisters.
fuels in nations where the basic fuels were coming from He said that the stability that OPEC+ had helped to
firewood, sometimes cow dung. enable, was key to “planners, investors, producers and
“What strikes me as really remarkable,” she said, consumers.”
“is that we talk about energy transition, we talk about
green energy… and the conversation is often about fin-
ger pointing … This is where the issue of international
cooperation is key.”
Dr Sen noted that people could take a leaf out of
what OPEC+ had done. “Coming together, 23 countries,
and at a time when you needed stability, particularly
during COVID-19 in April 2020. It provided stability to
the market.”
She added: “We are unable to replicate that in the
energy transition space. Energy transition is a global
issue, but we seem to be looking to solve it through
protectionism and at an individual country level.”
In terms of making cooperation easier, she stated
OPEC bulletin 7–8 /23

that simple measurable points on the energy transition

would be beneficial to make progress.

Charif Souki.

62
Charif Souki “It is a place to find solutions for the current energy
Co-founder and Executive Chairman of the Board, challenges, share knowledge and best practices, pro-
Tellurian Inc. vide clean solutions for exploration and production and
enable ways to solve the issue of emissions,” he added.
Commending what OPEC had done in trying to reduce He also referenced the need for African energy com-
market volatility, Charif Souki said this was vital to aid panies to access funding/financing, emphasizing the
investments. He added that demand for energy was importance of setting up the African Energy Bank.
going to continue to grow, and the rest of the world It was important to have a single voice for Africa, he
wants to live the same way the west lived. said, and at the same time, cooperate with the rest of
He said he was in favour of using all energies and the world.
“everyone should choose their own solution — both on
the supply side and the demand side. It is two sides of
an equation.”
In terms of the environment, he added that we were
all environmentalists, but the key question is, are you
willing to pay the price for your beliefs? Decarbonization
cost more, he said, and were people willing to contrib-
ute from their own pockets?

Paulino Jerónimo
President, National Oil, Gas and Biofuels Agency, Angola

Paulino Jerónimo talked about APPO being a key plat-

form for cooperation, where all African countries and
producers could come together. Paulino Jerónimo.

Speakers of high-
level Roundtable 6
and the Secretary
General.

OPEC bulletin 7–8/23

63
 Closing ceremony

Closing ceremony
OPEC Seminar

Ministers and the SG during the closing ceremony.

Speakers:
Haitham Al Ghais, OPEC Secretary General
OPEC bulletin 7–8 /23

Antonio Oburu Ondo, President of the OPEC Conference 2023, Minister of Mines and
Hydrocarbons, Equatorial Guinea

64
Antonio Oburu Ondo. Students (l–r): Fu Yun; Tobias Gerber; and Reem Mehemed. Haitham Al Ghais.

The closing ceremony began with some remarks by staff for making the Seminar a great success, particu-
students who had attended the OPEC Seminar. This larly the tireless efforts of the Secretary General. He
was a joint address delivered by Reem Mehemed from concluded by saying, “As the Head of Delegation for
Libya; Fu Yun, from the China University of Petroleum, Equatorial Guinea, I would also like to say that my coun-
Beijing, and Tobias Gerber, Webster University, Austria. try is extremely proud to call OPEC home. We sincerely
The students stated, “At this event, we have gained a value the friendship and unity that resonates through
global perspective on the future of energy and the envi- the Organization. OPEC is very blessed to have such
ronment, among other things, which has been highly distinct and diverse Member Countries. In this regard,
enriching.” They continued by saying, “We must make I would also like to thank all our 13 Member Countries
sure that we do not lose sight of international targets for enriching this event.”
and long-term progress on the environment, the econ- The Secretary General also delivered closing
omy and social issues, and at the same time provide remarks. He said, “Hopefully the ideas stimulated at this
energy to everyone across the world.” They thanked the Seminar can enhance our own personal and collective
Secretary General for the invitation to attend. contributions to meeting the challenges and seizing the
The President of the Conference began his closing opportunities that exist in the energy industry.”
remarks by saying, “What a two days it has been. I think He thanked the Ministers and Ambassadors, the heads
the only word I can offer is ’Wow’. It has been an inspir- of international organizations, representatives from the
ing event with great speeches, discussions and net- City of Vienna, the chief executives of national and inter-
working. Interacting with all of you, especially the young national oil companies, and all of the other speakers
students and leaders of tomorrow that are here, I feel and panel members. He said, “Thanks go to our spon-
a tremendous sense of optimism that even though we sors, partners, media partners, consultants and all oth-
have achieved so much in the past; our Organization’s ers involved in this event. The authorities of the Congress
OPEC bulletin 7–8/23

and the industry’s best days are ahead of us.” Centre of the Hofburg Palace, and the Austrian security
He also thanked the sponsors, delegates, speak- forces also deserve our gratitude.” He also thanked the
ers, participants, moderators and OPEC Secretariat OPEC Secretariat staff for their outstanding work.

65
 Students at the Seminar

Students participate at the 8th

OPEC Seminar

OPEC International Seminar,

gaining new perspectives

Haitham Al Ghais, OPEC Secretary General, with students at the closing ceremony.
OPEC bulletin 7–8 /23

66
This was not the first time that OPEC invited students to participate in one of its main events or
activities. OPEC and its Member Countries have always given due consideration to youth, including
through a variety of educational, outreach and training programmes. For the 8th OPEC International
Seminar, the Organization extended invitations to nominate qualified students to attend the
Seminar to its Member Countries, partners under the framework of the OPEC International Energy
Dialogues — China and India, as well as OPEC’s host country Austria.

Over the years, OPEC has engaged with and supported During the Seminar, the students were confronted
youth in various activities and events. The 8th OPEC with what they called, “challenging and sometimes con-
International Seminar was no different and provided a flicting arguments and worlds”. For them, the Seminar
unique opportunity to enable youth to make their mark was not only about learning and networking, it was
during what is an important and challenging time across about trying to understand how the energy transition
many parts of the globe. should be best achieved and what they wanted the
It also afforded the students an excellent opportu- world to look like in the future. Some also mentioned
nity to learn more about OPEC’s role and objectives, and that the Seminar had helped them to “appreciate” and
the challenges facing global energy markets. better “understand” the role of OPEC and the ongoing
The theme of this year’s Seminar, “Towards a sus- “importance of crude oil.”
tainable and inclusive energy transition”, challenged In a joint concluding communiqué, the students
many of the students to think critically and focus on collectively expressed their gratitude and profound
how all stakeholders can work together effectively to appreciation for the invitation, and thanked the OPEC
formulate achievable and realistic goals. Secretariat and OPEC Secretary General for “supporting
youth and getting them involved in this important global
industry”. They also thanked their individual coun-
Participation during the two-day event
tries for nominating them. Secretary General Al Ghais
Upon arriving at the venue, the students received a acknowledged the importance of the students’ partici-
warm welcome by OPEC Secretary General Haitham Al pation in his remarks at the Seminar, stating that “The
Ghais, and other colleagues from the OPEC Secretariat, theme of this Seminar looks to the future, and given
and were briefed on what to expect during the two day that forward-facing orientation I am delighted that we
event. They visited the exhibition area and met oil and are joined by the architects of our world’s future: young
energy leaders, the President of the OPEC Conference people and students from across the globe. We encour-
2023 and the OPEC Secretary General. age you to maximize the opportunity that this Seminar
They also attended high-level, round-table discus- presents.”
sions, where they could listen directly to key decision
makers about contemporary trends and the future of the
Student reflections
industry, and attended the Ministerial sessions on both
days. The Seminar not only challenged each student’s per-
On day two, the students attended the rest of the spectives and ideas, it also inspired them to “think out-
sessions and benefitted from professional networking side of the box” and put themselves in decision makers’
opportunities and first hand talks with ministers, CEOs shoes, which they agreed was “not easy”!
of national and international oil companies, analysts, Acknowledging the utility of attending the Seminar,
researchers, representatives of academia, and OPEC the students each drafted the following messages:
colleagues and other participants. Moreover, the stu-
OPEC bulletin 7–8/23

dents also had a brainstorming session on the energy Muhammad Khubab, University of Vienna, Austria
transition challenge and offered their perspectives on “It was very nice to interact with students, minis-
the discussions they attended. ters, delegates and discuss plans for climate change

67
 Students at the Seminar

OPEC Seminar

and the renewable energy transition. Before joining the energy.” He summarized the main outcomes from the
Seminar I was confused and hesitant, as my focus was Seminar in three concepts, namely “cooperation, global
on climate change, but I was surprised to see that the achievement and innovation”.
industrial people were keen and sincere in trying to find
solutions for the future generations.” Mohammad also Mohcen Boutaiba, University of Boumerdes, Algeria
thanked his university and OPEC for this “unforgettable “I was very thankful to be given the opportunity to
opportunity”. exchange with policymakers. This was insightful and
exceeded my expectations. I learned about how the
Abdulaziz Alshammari, Kuwait University, Kuwait energy future might look like.”
“I am very honoured to be here… as a student, it
OPEC bulletin 7–8 /23

was beneficial to hear different views on the energy Alexandra Schieferer, Webster University, Austria
transition and approaches to uncertainties. Youth play “The OPEC Seminar has been such an enriching expe-
an important role and advocate for more sustainable rience. I heard from experts and learned about the future

68
 Three students delivered their own remarks at the closing ceremony
(l–r): Reem Mehemed; Tobias Gerber; and Fu Yun.

Abdullah Linjawi, King Fahd University of Petroleum and

Minerals, Saudi Arabia
“I was honoured to represent KSA, had a great expe-
rience and would like to emphasize the importance of
communication in securing a sustainable future.”

Ali, IR Iran
“While the interaction was great, in future seminars
I hope youth will be on stage too, delivering presenta-
tions and having their own special sessions.”

Tobias Gerber, Webster University, Austria

“It was a superb networking opportunity and very
interesting to listen to the various sessions.”

Fu Yun, China University of Petroleum, Beijing, China

“Young people play an important role in this field
and we are thankful to everyone who contributed to this
great Seminar.”

Wandi Manuel, Universidade Agostinho Neto, Angola

“The sessions were so interesting and I learned a
lot about the energy transition.”

Vanessa Ugoeze Abazie, Crawford University, Nigeria

“The Seminar was very insightful and an amazing
experience. The theme was wonderful; we want an energy
transition but to achieve that we need finance. In order
to get finance, we need to rely on the oil industry, as this
is where the money comes from. We must focus on what
energy transition; I also made so many connections and we have before moving to a complete transition.”
friendships that will last a life-time, hopefully.”
Jakob Kulich, Montanuniversität, Austria
Patrick Jasek, Montanuniversität, Austria “I fully agree with OPEC that every country has its
“It was a very enlightening experience to listen to own capabilities but would love to see future plans on
global leaders and industry experts and despite seeing how to address the environmental issues.”
a lot of problems, I think the industry leaders have the
tools to do the right thing and they are moving in the Zakhir Mamedov, Modul University, Austria
right direction.” “Oil is here to stay and the number one fuel in the
energy mix; OPEC Member Countries are investing bil-
OPEC bulletin 7–8/23

Reem Mehemed, Libya lions towards a sustainable energy transition and reduc-
“I was happy to be here to hear from OPEC Member ing our footprint, and that is why I think our future will
Countries and be able to share our ideas as well.” be prosperous and ecofriendly.”

69
 Sponsors

Sponsors and exhibitors make their

OPEC Seminar

mark at the 8th OPEC Seminar

The 8th OPEC International Seminar was supported by the Sponsors could contribute to one of four different
generous contributions of many leading oil and energy sponsorship categories, namely Diamond, Gold, Silver
companies from OPEC Member Countries, as well as and Bronze.
other dialogue partners. More than 22 sponsors in total, Each category conferred a variety of benefits related
including OPEC Member Country national oil companies to visibility before, during and after the Seminar, while
(NOCs), oil ministries, international oil companies (IOCs) the first three categories also allocated a dedicated exhi-
and others, widely contributed to the bition stand to each sponsor.
success of the Seminar. In addition, OPEC welcomed the generous contribu-
The exhibition area of the 8th OPEC tion of the event’s Diamond sponsors by granting them
International Seminar was officially with an exclusive lounge in one of the most prominent
opened on 5 July 2023 during a for- areas of the Seminar.
mal ribbon-cutting ceremony presided Aramco, Saudi Arabia; Guinea Ecuatorial de Petroleos
over by Antonio Oburu Ondo, the (GEPetrol), Equatorial Guinea; and Nigerian National
Minister of Mines and Hydrocarbons Petroleum Company (NNPC), Nigeria, sponsored the
of Equatorial Guinea and current event as Diamond sponsors, and thus received the larg-
President of the OPEC Conference est stands in the main exhibition area and many exclu-
2023, ministers from OPEC Member sive benefits.
Countries and Haitham Al Ghais, Agência Nacional de Petróleo, Gás e Biocombustíveis
OPEC Secretary General. Other offi- (ANPG), Angola; Sonangol, Angola; Hess Corporation,
cials and dignitaries, as well as OPEC US; Kuwait Petroleum Corporation (KPC), Kuwait;
Secretariat representatives, also Nigerian Midstream and Downstream Petroleum
joined the ceremony. Regulatory Authority (NMDPRA), Nigeria; Nigerian
The Seminar included impressive, Upstream Petroleum Regulatory Commission (NUPRC),
The Diamond sponsor state-of-the-art booths from OPEC Nigeria; Oando PLC, Nigeria; and Österreichische
exhibition booth of Saudi
Member Countries and a variety of
Aramco.
sponsors, which displayed, inter alia, how their NOCs
were adopting green technologies and reducing carbon
emissions.
Throughout the two-day Seminar, more than 1,000 par-
ticipants visited the exhibition area and discussed the lat-
est energy trends and perspectives with some of the larg-
est oil companies in the world. Participants also benefitted
from the vast amounts of information provided by each
sponsor and company, which enabled them to develop a
better understanding of the energy industry as a whole.

Sponsors
OPEC bulletin 7–8 /23

The Seminar provided the participating sponsors with

a unique opportunity to present their work and benefit from
a wide range of promotional opportunities.
The Nigerian National Petroleum Company (NNPC)
was also present as a Diamond sponsor.

70
Mineralölverwaltung (OMV), Austria, all contributed gen- Diamond sponsor NNPC, through its Chief Strategy and
erously as Gold sponsors. Sustainability Officer, Oritsemeyiwa Eyesan, praised what
The 8th International Seminar was also marked by a she said had been an excellent and interactive seminar,
large number of kind Silver sponsors, namely: the Abu adding: “The level of transparency was very insightful for
Dhabi National Oil Company (ADNOC), the United Arab us, as we believe in a just transition. It was a very fruitful
Emirates; the African Energy Chamber, South Africa; Seminar.”
Crescent Petroleum, the United Arab Emirates; the Thanking OPEC for the “masterclass event and great
Nigerian Content Development and Monitoring Board organization,” Ali-Rageh Fahd from the NMDPRA said:
(NCDMB), Nigeria; Oriental Energy Resources Limited, “My first experience has been great, full of quality peo-
Nigeria; the Petroleum Technology Development Fund ple and good discussions.”
(PTDF), Nigeria; the Oil Marketing Company (SOMO), Iraq, The Chairperson and CEO of Sonangol, Sebastião
as well as TotalEnergies, France. Gaspar Martins, praised the
In addition, Petronas, Malaysia, and Sonatrach, Seminar for making it possible
Algeria, kindly contributed as Bronze sponsors. for “Africa and our country to
The majority of this year’s sponsors were from Africa, be heard. We believe that this
reflecting African companies’ great interest in showcasing Seminar should happen more
their technologies and utilizing the unique opportunity of often, as it made it possible
the Seminar to promote their work, network and explore for everybody to be here and
new opportunities. express their points of view.”
All sponsors were keen to use the special platform Verner Ayukegba from the
provided by OPEC to promote their companies’ work and African Energy Chamber also
emphasize the importance of cooperation and dialogue, noted his appreciation, stress-
and praised OPEC for the success of the ‘Declaration of ing that he had been “thrilled
Cooperation’. to be at the 8th International
In addition, the OPEC Secretariat welcomed partic- Seminar … an amazing event
ipants at its stand, where people could take flagship and I am looking forward to
OPEC publications and gain valuable insights into the continuing discussions and
Secretariat’s work. being here again next time.” Diamond sponsor Guinea Ecuatorial de
Petróleos (GEPetrol) at the exhibition.
Andreas Rinofner, Senior
Advisor Public Affairs and International Relations at OMV,
Thanks
expressed his gratitude, saying: “We are happy that OPEC
The Seminar concluded with many words of appre- hosted the Seminar here in our home city and we found it
ciation, including from the sponsors, who thanked amazing to bring all decision makers here to discuss and
Secretary General Al Ghais, the organizing commit- cooperate, especially now when it comes to energy tran-
tees and the OPEC Secretariat for making the Seminar sitions and climate change.”
a great success. SOMO, a regular sponsor of the Seminar, thanked
In return, the Secretary General conveyed OPEC’s the Secretariat for its excellent organization through its
gratitude for all sponsors’ support in realizing the PR representative, Shaymaa Jala Ahmed, who said: “We
Seminar’s vision. were happy to contribute to the Seminar again and look
forward to the next one.”
Crescent Petroleum, whose Chairman also spoke
at the event, thanked the OPEC team. The Director of
Impressions from sponsors
Communications at Cresent Petroleum, Hassan Fattah,
Diamond sponsor GEPetrol stated, through its General said: “It was an excellent experience working with the
Director, Teresa Isabel Nnang Avomo: “We appreciated OPEC team and we appreciate all of the hospitality and
the topics discussed over the past two days, which were help that we got. We especially appreciated the very high-
OPEC bulletin 7–8/23

critical for producing countries … one of the key mes- level, sophisticated discussions. Overall, it was a great
sages shared was that energy transitions could not be experience and we look forward to sponsoring again in
the same for all countries.” the coming years.”

71
 Interviews

OPEC Seminar Interviews

OPEC Seminar

On the sidelines of the Seminar…

Antonio Oburu Ondo vital, specifically in terms of helping reduce volatility
Minister of Mines and Hydrocarbons, Equatorial Guinea, and enable more market certainty.
President of the OPEC Conference 2023 He added: “Every country has to make sure their
economic planning has certainty, their budget has cer-
In an interview with the OPEC tainty … That is why to me it is very important to make
Webcast team, Antonio Oburu sure there is certainty in the oil market.”
Ondo, Minister of Mines and
Hydrocarbons, Equatorial
Guinea, and President of the
OPEC Conference 2023, said Diamantino Pedro Azevedo
the Seminar “had been a great Minister of Mineral Resources, Petroleum and Gas,
experience.” Angola
He said that there had
been many important ideas
discussed, specifically refer-
encing the importance of OPEC
and the industry is making their
voices heard “when it comes
to climate change and the
energy transition.” He added
that talks on such issues in the
past had often gone on without
Antonio Oburu Ondo. producers.
“OPEC has to make sure
the world understands we cannot just rule out fossil
fuels,” Oburu Ondo said. “Those fossil fuels are very
much needed, not only to fund the energy transition,
but also as a source of energy for our future.”
He also highlighted when it came to developing
countries that the Seminar had underlined that “we
need to address the energy transition at different speeds
Diamantino Pedro Azevedo.
and on different levels”.
Oburu Ondo underlined the importance of keeping
in mind people and their lives. “The way of life of some- Diamantino Pedro Azevedo, Minister of Mineral
one living in Vienna and the way of life of someone living Resources, Petroleum and Gas, Angola, said he felt the
in Malabo is very different. Whatever we do, in terms of Seminar had come at the right time for discussions on
the energy transition, one way or the other way, we need the oil market, as well as the energy transition.
to make sure people have access to energy and that is In terms of the energy transition, he said that while
taking care of people’s lives.” some had stated that oil would not be needed, “we have
OPEC bulletin 7–8 /23

In responding to a question about the importance of to be careful of people saying things like that.”
OPEC and OPEC+ to market stability during his time as Oil would be needed, he said, “and will continue to
OPEC Conference President, he stated that it had been be very important even for the energy transition. Without

72
 oil, I am not sure if we can maintain and improve the He added that it had also been beneficial in terms
quality of life, not only in the developed world, but also of meeting fellow ministers to discuss mutual interests
for countries like Angola and other African countries between Libya and their own countries.
where we still have very huge energy poverty.” Oun highlighted that in the energy transition, “the
In Africa, he added, “we are saying we need a just international community should give specific care to
energy transition. Not only a just, but an equitable African nations that are still developing their own min-
one, taking into consideration the state of develop- eral resources, especially oil and gas.”
ment of African countries, because the situation is From the perspective of Libyan oil and gas, he
different. stated, “we are steadily improving the situation in
“For us we count on our resources, not only oil, but Libya, we feel we may be in a position, in say at least
other minerals too and we expect that the developed 3–5 years, to send a considerable amount of gas and
world understands that. We are not keen to just fulfil oil to Europe.
the agenda of other countries, we want that agenda to “We have an ambitious plan to increase our oil pro-
take into consideration the concerns of our countries.” duction from about 1.2 mb/d currently to about 2 mb/d
Pedro Azevedo also stressed that while oil was vital in about five years. On the gas side, we also have many
to Angola, the country was also developing many pro- discoveries that can be developed and brought online.
jects in terms of solar energy, green hydrogen, biofuels We now have a pipeline tying Libya to Sicily in Italy and
and studying wind solutions. we can duplicate that line as well.”

Mohamed M Oun Ambassador Gabriel Tanimu Aduda

Minister of Oil and Gas, Libya Acting Head of Delegation, Permanent Secretary, Ministry
of Petroleum Resources, Governor for OPEC, Nigeria
“I think I came out with an excellent impression of the
event, the OPEC Secretariat, the Secretary General, In commending the Seminar, Ambassador Gabriel
the staff, the organization, the city of Vienna,” said Tanimu Aduda, Acting Head of Delegation, Permanent
Mohamed M Oun, Minister of Oil and Gas, Libya, when Secretary, Ministry of Petroleum Resources, Governor
asked to reflect on this year’s Seminar. for OPEC, Nigeria, said he welcomed all the topics

OPEC bulletin 7–8/23

Mohamed M Oun. Ambassador Gabriel Tanimu Aduda.

73
 Interviews

discussed and specifically referenced the talks on the

OPEC Seminar

energy transition.
In this regard, he stressed that “the world needs to
move together. That is the truth. There is no one-size-fits-
all solution with the global transition agenda. But one
thing is certain; we need to move in the same direction.”
He added that it was clear from the Seminar that
“fossil fuels are not going anywhere soon.” If this is
the case, he added, “OPEC can do a lot by encouraging
Member Countries to develop technology, fix financing
and of course plan infrastructure in the area of natural
gas.”
Tanimu Aduda talked about the importance of gas as
a big transition fuel, and as a resource that was readily
available.
Sebastião Gaspar Martins.
In terms of Nigeria, he noted, “we have declared
the next ten years as the decade of gas in Nigeria … We
are a major gas producing country, because we actu- to understand that we need to take this approach grad-
ally have more natural gas than crude. So, Nigeria is ually and it should be based on different possibilities
on that path and that is what we are pursuing … The and the development phase in each country.”
goal is to ensure that the 200 plus million population In terms of COP28 later this year in the United Arab
in Nigeria embraces the use of natural gas as an alter- Emirates, he stressed that it “would be very good that
native fuel.” all the African countries, all the OPEC countries, express
In a question on the opening of the Dangote Refinery their views so that the outcome of this can be something
in Nigeria, Tanimu Aduda underlined its importance, but that is useful for us and the entire world.”
stressed “the refurbishing of three national refineries.” From Sonanagol’s perspective, he said the compa-
He also oted that “a lot of modular refineries are also ny’s strategy was clear. “We should continue investing
being encouraged and as we speak, about six are already in oil and gas development, with a very responsible way
on stream, they are already producing, so a lot is in the to address the environmental issues and of course, use
pipeline.” the resources that we make from oil and gas … in order
to allow us reach the same level of other countries.”

Sebastião Gaspar Martins

Sonangol President and CEO Tarek El-Molla
Minister of Petroleum and Mineral Resources, Egypt
Sebastião Gaspar Martins, Sonangol President and CEO,
highlighted the importance of the Seminar covering top- “I have really enjoyed the Seminar over the last couple
ics related to “sustainability and inclusiveness of all of days, it was very interesting, and we have seen a lot of
countries in the climate change issue.” interesting panelists, a lot of good sessions, a lot of good
He said that “having this Seminar, we might be able to interviews, and a big audience too,” said Tarek El-Molla,
express the position that all our entities are interested in, Minister of Petroleum and Mineral Resources, Egypt.
improving the climate, but without jeopardizing the pos- “We can see everybody was engaged” he added,
sibility of other countries not having the ability and access “and I would say this was part of the success of this
to energy.” Seminar because it was inclusive. We could talk really
Africa was in a different position compared to Europe openly about the challenges, the way forward and the
OPEC bulletin 7–8 /23

or North America regarding energy access, said Gaspar future of energy.”

Martins. “You have a different approach in the energy tran- When asked about Egypt’s long relationship
sition.” He said that “people and the world are starting with OPEC, El-Molla recalled that earlier in 2023 “we

74
 for bringing industry leaders together at a timely junc-
ture, especially given the large amount of change since
the last Seminar in 2018.
In the interim period, Pouyanné commended OPEC’s
role in fostering stability in what was often a volatile oil
market, noting that “affordability of energy is essential.”
He said that one of the Seminar’s key lessons was that
all energies remained necessary; the world needed oil and
gas — the energies of today — while building low-carbon
energies. He lamented that energy transition debates were
often “anti-fossil fuels” and ignored the nature of energy
security, pragmatism and reality. “We have to reduce emis-
sions from fossil fuels, not ban them,” he added.
Pouyanné noted that many OPEC Member Countries
such as Saudi Arabia and the United Arab Emirates were
Tarek El-Molla.
already involved in the transition, investing heavily in
renewables while also producing the oil that the world
celebrated at the (Maadi) yacht club in Cairo where the needed today.
idea of OPEC was formed.” He added that Egypt had Underlining that the transition was an “and” and
always been a good friend to OPEC, and vice versa, and not an “or” equation, he noted that five years ago
the relationship today was very good. TotalEnergies had been named Total. “Today it is
“I see this is something adding value to Egypt and TotalEnergies and the energies part is important ... our
our oil and gas industry to be somehow engaged and strategy is oil for sure — producing 1.4 mb/d — and we
associated with the OPEC family, and we are always intend to maintain this production, but it is also gas, as
invited to conferences, meetings or seminars, to keep over the last five years we became the third largest LNG
up with leadership, as well as the latest developments, marketer… and electricity from renewables and flexible
policies and announcements made by OPEC,” he said. capacities like gas-fired power plants.”
He also underscored the value that OPEC and OPEC+ “We are very serious about renewables in electricity,
bring in terms of helping to stabilize the oil market. “We what we call integrated power”, he said, “we are now
do not want to see volatility, we do not want to see short-
ages, and therefore I think that the good intentions and
good role of OPEC is positive.”
When asked to reflect on the energy transition, the
outcome of COP27 in Sharm El-Sheik last year, as well as
COP28 in the United Arab Emirates, El-Molla also high-
lighted the African perspective and a “just transition.”
He said that COP27 spoke about inclusiveness and
“that is why we said we have to be all together, mean-
ing the energy companies, the oil and gas companies,
as well as renewables and whatever clean fuels we are
talking about.”

Patrick Pouyanné
Chairman of the Board and CEO of TotalEnergies
OPEC bulletin 7–8/23

Patrick Pouyanné, the Chairman of the Board and Chief

Executive Officer of TotalEnergies, praised the Seminar
Patrick Pouyanné.

75
 Interviews

investing $4 billion per year in the field and we already In terms of the market outlook, Alajlan believed that
OPEC Seminar

have more than 20 GB of capacity; we can do it big and demand for oil — especially in the transportation sector —
this is our ambition.” would remain high in the coming 20 to 30 years, plateau-
He concluded by outlining that TotalEnergies was ing somewhere between 100 and 110 mb/d. He noted
sanctioning “oil and gas projects at $50/b and at $50/b that oil, gas and coal currently represented approximately
my company is making returns of 10 to 12 per cent… for 83 per cent of the global energy mix, while renewables
electricity, integrated power, we set the same target at — despite considerable progress — still only provided 14
ten per cent, and we are now publishing quarterly results per cent of global energy needs.
from which people observe that we are on target.” Regarding countries’ energy transition processes,
KAPSARC has been exploring “how we can increase
financial flows into clean energy tech and clean energy
investment, and focus on hydrogen, carbon capture and
Fahad Alajlan sequestration and other technologies that will help us
President of the King Abdullah Petroleum Studies and reach carbon neutrality”.
Research Center (KAPSARC) However, when considering energy transitions,
Alajlan cautioned that policymakers should keep
KAPSARC President Fahad Alajlan believed that the regional differences and regional imbalances in mind.
Seminar had proven to be very useful, especially its For developing economies, taking economic develop-
ability to bring together speakers, policymakers and ment into account in addition to climate change and
decision-makers from OPEC Member Countries, OPEC+ energy security would remain crucial.
and regions like the European Union and South America. He also noted that “the distribution of energy invest-
This had ensured that a myriad of perspectives from ment in OECD countries is pretty uniform across the
numerous regions and sectors could enrich and inform board. However, almost half of investments in develop-
the discussions. ing countries are in China alone. Hence, while we need
He was proud of KAPSARC winning the OPEC Awards to double clean energy investment globally overall, if one
for Best Research Institution and Best Research Paper, examines developing economies without China, it actu-
attributing this success to a combination of years of effort ally needs to increase more than fivefold.”
and investment, and seeing the awards as further proof
of KAPSARC’s impact on domestic and global decision-
making processes related to energy and sustainability.
Dr Axel Pierru
Acting Vice President of Knowledge and Analysis,
KAPSARC, and co-author of the paper that won the OPEC
Award for Best Energy Research Paper

Dr Axel Pierru, Acting Vice President of Knowledge and

Analysis at KAPSARC and co-author of the paper that
won the OPEC Award for the Best Energy Research Paper
at the Seminar, was honoured to receive the prize. “It
means that our work has reached policymakers and
those who are active in the management of the oil mar-
ket, which is great recognition for us.”
Upon being questioned about the period outside the
joint paper’s research timeframe, namely post-August
2021, he noted that oil prices had remained remarkably
stable despite a confluence of unprecedented shocks,
OPEC bulletin 7–8 /23

such as exiting from a global pandemic, China’s zero-

COVID-19 policy and the conflict in Europe. Although
the effects of these types of shocks on the market were
Fahad Alajlan.

76
 the award and looked forward to continuing a similar
line of research given her desire as an economist and
analyst to understand what exactly was happening in
the oil market and why.
Shedding further light on her research to date,
Almutairi noted that the joint paper had examined to
what extent OPEC had succeeded in stabilizing the
oil market. She had done so
by using monthly data from
September 2001 until August
2021.
“We broke this time down
into three successive periods.
The first was the commodity
boom from September 2001
Axel Pierru.
to the end of 2014, the second
was the market share period in
2015 and 2016, and the third
difficult to measure, he planned to conduct a thorough was the OPEC+ period. We used
analysis once sufficient data was available. different scenarios and struc-
More specifically, future research would theoret- tural models and found that
ically and empirically address the type and quality of during the commodity boom
information required to stabilize oil prices effectively and OPEC+ periods, OPEC’s
in the face of uncertainties like oil demand, non-OPEC actions had reduced the volatil-
supply responses to adjustments in OPEC production, ity of oil prices by up to 50 per
the timing and magnitude of shocks to the market, and cent.”
prevailing conditions for inventories, for example. Upon being asked what the Hossa Almutairi.

The objective of this research would be to under- implications of this research were for the global econ-
stand from a scientific perspective — rooted in market omy, Almutairi stated that although this was a difficult
data and sound economic modelling — how the oil mar- and complex question to answer, “we tried to quantify
ket could effectively be stabilized. this and looked at savings to GDP losses due to spare
“The oil market is the most important commodity capacity of OPEC and found that this value was evalu-
market in international trade and is critical for industrial- ated at $193 billion for the economy.”
ization, economic growth and the global distribution of
wealth. We want our research to be useful in policymak-
ing; we want both the world of academia and the poli-
cymaking community to be able to understand exactly Ana Palacio
just how effective the management of the oil market Former Minister of Foreign Affairs of Spain
currently is.”
Ana Palacio, former Minister of Foreign Affairs of
Spain, spoke of how the energy transition needed to
be tailored depending on different areas, countries
Hossa Almutairi and regions.
KAPSARC research fellow and co-author of the paper that For example, regarding Europe, she cautioned
won the OPEC Award for Best Energy Research Paper that the shock in energy terms prompted by the esca-
lation over the Russia-Ukraine conflict had posed a
OPEC bulletin 7–8/23

KAPSARC research fellow Hossa Almutairi, who was a great challenge for the European Union. However,
co-author of the paper that won the OPEC Award for she hoped that this jolt had prompted Brussels to
Best Energy Research Paper, was honoured to receive move away from the idea of “one transition in which

77
 Interviews

OPEC Seminar

Dr Helima Croft
Head of Global Commodity Strategy and MENA Research
at RBC Capital Markets

Dr Helima Croft, the Head of Global Commodity Strategy

and MENA Research at RBC Capital Markets, stated
that although the interim period had witnessed a pan-
demic, the largest oil demand collapse in history, and
the outbreak of conflict in Europe, OPEC’s mission and
desire to ensure market stability and transparency had
remained the same.
She outlined that the pres-
ent oil market was largely concerned with the broader
macroeconomic picture, including the effects of rate
hikes and recessionary trends; the Russia-Ukraine con-
flict remained a factor too, especially in terms of market
stability.
Ana Palacio. Dr Croft underlined that recent years had seen a shift
in perceptions regarding energy security, particularly
the only star was renewables” and understand that for many western leaders who had had “to scramble to
Europe required “energy transitions, with an s, led secure enough energy supplies”. This change had also
through different pathways, as there is no one-size- been apparent in the US, where oil producers had been
fits-all approach.” encouraged to pump more oil, partially to counter “con-
In this regard, she cautioned that future energy cerns about the economic impact of higher retail gaso-
demands could not be satisfied by renewables alone, line prices”.
and stated that Europe “cannot just bet on the Green Moving forward, the aforementioned geopolitical
Deal as it was portrayed.” developments had served to strengthen the role that
Elsewhere, Palacio noted that there were “growing
populations in Africa and Southeast Asia with bulging
middle classes asking for more energy”, which would
contribute to rising global energy consumption. She
argued that the solution to meeting these additional
demands would be to ensure effective diversification
of energy sources and “recognize that oil and gas have
to be part of the equation”.
In addition, she stated that Africa’s current focus
should be on ensuring access to sufficient, secure and
affordable energy for all. She believed that relevant
multilateral institutions’ financial capabilities could be
useful in facilitating this, and called for nimble efforts
to foster and further minimize investment risk in Africa.
In this respect, she believed that the Multilateral
Investment Guarantee Agency — a member of the
World Bank Group — or a similar structure could be
further developed and utilized to make private finance
OPEC bulletin 7–8 /23

available for Africa and other regions.

Dr Helima Croft.

78
natural gas would play in the energy transition too, with Dr Meyer responded that “the
many countries around the globe now seeing gas as an industry has always been very
essential fuel source. eager… especially the Gulf
When asked about the difficulty of predicting future Cooperation Council countries,
oil market trends, Dr Croft noted that there was currently which are very good at produc-
a discrepancy between what data from physical markets ing barrels with a low carbon
actually represented and some of the prevailing narra- footprint… and whose energy
tives in the media. Ultimately, however, she noted, “the policies are also about decar-
actual demand for oil looks strong.” bonizing and bringing more
Regarding what OPEC could bring to the conver- renewables on board.”
sation around energy transitions, Dr Croft stated that In addition, Dr Meyer stated
her moderation of a fantastic panel at the Seminar had that OPEC had a very important
served to underline to her that “if you want to think role to play in regions’ ongo-
about who has the technology to ‘do’ hydrogen, it is oil ing energy transitions, “espe-
companies and oil producing companies.” cially on educating people that
Finally, she added that COP28 in the United Arab we still need oil and gas, and
Emirates would offer a unique opportunity to bring all about the fact that there are
relevant “energy producers into the conversation on many places where oil and gas Dr Cornelia Meyer.
providing the technology needed for a low emissions are being produced at a much
future… [and enable] an inclusive dialogue about how lower carbon intensity”.
everybody can work together to ensure that these really In the future, Dr Meyer noted that “the matter of oil
critically important climate goals are reached”. will not go away because we will have two billion more
people on the planet by 2050.” In this, “OPEC will have
a huge role to play in producing the oil and gas that they
will need and in educating the world that we will still
Dr Cornelia Meyer need oil and gas”, especially if everyone is to be lifted
Chairman and CEO of the MRL Corporation out of energy poverty.

The Chairman and CEO of the MRL Corporation, Dr

Cornelia Meyer, praised OPEC’s convening power and
believed that the Seminar had offered an excellent
post-pandemic opportunity to discuss what roles the
oil and gas industry could play in energy transitions
across the globe, and how fair and just energy transi-
tions could be achieved.
She was heartened to see that representatives of the
Global South were speaking with such a strong voice at
the Seminar, and hoped the Global North would take
heed, including moving forward in wider fora.
Dr Meyer noted that the mood of this year’s Seminar
had differed to that of 2018, attributing this to the pan-
demic, the intensifying COP energy transition debate,
and conflict in Europe once again driving energy secu-
rity to the fore.
Asked whether she believed the oil industry was
OPEC bulletin 7–8/23

doing enough to address the energy transition process,

79
 Impressions

Impressions from the OPEC Seminar

OPEC Seminar
OPEC bulletin 7–8 /23

80
81
OPEC bulletin 7–8/23
 Iraq hosts
Anniversary celebration

Anniversary
celebration
Al-Shaab Hall, the birthplace of OPEC in 1960, finally got to hold the Organization’s
60th Anniversary celebrations on 16 June after being repeatedly postponed due
to the COVID-19 pandemic and its effects on travel and health. The OPEC Bulletin
reports on the joyous occasion.
OPEC bulletin 7–8/23

82
O
n 10 September 1960, at the invitation of At the meeting’s conclusion on 14 September the
Iraq, representatives from Iran, Kuwait, Saudi five countries decided to form a permanent intergovern-
Arabia and Venezuela arrived at Al-Shaab Hall mental body known as the Organization of the Petroleum
in Baghdad for talks on creating a new organization. Exporting Countries. The gathering became known as
For five days, delegates at the meeting deliber- the historic ‘Baghdad Conference’. It was the very first
ated. There was little fanfare, but the Heads of the Meeting of the OPEC Conference.
Delegation and the five Founding Fathers of OPEC — The Platt’s Oilgram News Service of 16 September
Abdullah al-Tariki of Saudi Arabia, Juan Pablo Pérez 1960 headlined, “Baghdad parley approves permanent
Alfonzo of Venezuela, Dr Tala’at al-Shaibani of Iraq, Organization”, and noted that the chiefs of delegation
Dr Fuad Rouhani of Iran and Ahmed Sayed Omar of in their closing speeches had stressed “full cooperation,
Kuwait — reached a historic decision that would trans- deep comprehension and usefulness of the conference.”
form their countries, and the global oil industry.
In evoking the seminal meeting, Rouhani said in an
OPEC history on display
OPEC Bulletin interview in July 1990 that he had “a very
clear recollection of the meeting in Baghdad … it was Today, OPEC is an Organization of 13 Member Countries,
one of unanimity with regard to the main objective, but an established and respected part of the international
one of openness towards the discussion of the different energy community and the multilateral system, and a
ways and means. partner for other producing nations in the Declaration
“I was very much impressed by the spirit and atti- of Cooperation (DoC).
tude of all those representatives who were present and The success of any inter-organizational body is
their willingness to discuss matters objectively and linked to the strength and solidarity of its Members, and
without bias.” OPEC is no exception. Despite the richness and diversity
Mohammed Al-Sudani,
Iraq’s Prime Minister.

OPEC bulletin 7–8/23

83
Anniversary celebration

Officials celebrate OPEC’s 60th Anniversary with a commemorative group photograph.

of cultures, the wide geographical spread, the varied

geological endowments and the pressures from exter-
nal sources, OPEC Member Countries have displayed a
commendable degree of unity and resolve over the past
60 plus years.
This was clearly on display at the celebrations at
Al-Shaab Hall in June 2023. There were a host of high-
level dignitaries from OPEC Member Countries and DoC
nations present, with the hall packed on all levels.
The Prime Minister of Iraq, Mohammed Al-Sudani,
said to the assembled guests that “when OPEC was
established, oil wealth was managed by monopolis-
tic companies, which led to countries losing their sov-
ereignty and influence in the oil market.” He said the
establishment of OPEC had enabled producing countries
to exercise “full sovereignty” over their resources.
OPEC bulletin 7–8/23

Looking ahead, he added: “Oil continues to be a fun-

damental source of energy worldwide, remaining signif-
icant in terms of the economy, development, and the

84
Haitham Al Ghais, OPEC Secretary General.
 Hayan Abdulghani Abdulzahra Alsawad, Iraq’s Deputy HRH Prince Abdul Aziz Bin Salman, Saudi Arabia’s
Prime Minister for Energy Affairs and Minister of Oil. Minister of Energy.

environment. It is essential for countries that rely on its pro- Aziz Bin Salman, underscored the importance of OPEC
duction or consumption.” He also highlighted that it was and OPEC+ in helping to stabilize the oil market,
imperative to prepare and develop strategies to align with which benefited both Member Countries and the oil
the global energy transition towards alternative sources. industry in general.
The Deputy Prime Minister for Energy Affairs and He said that this had been achieved over the years
Minister of Oil of Iraq, Hayan Abdulghani Abdulzahra with consensus among OPEC and OPEC+, making spe-
Alsawad, also spoke at the event. He stated that “Iraq is cific reference to recent developments. He said that
proud of hosting this historic celebration” and that “it is amid current conditions, economic fluctuations and the
time for the Organization to celebrate all the accomplish- uncertainty facing the world, the unanimous outcome
ments it has achieved throughout the last six decades of the recent OPEC and non-OPEC Ministerial Meeting in
and more.” early June had been a positive.
He added that this significant milestone in OPEC’s Manaf Abdulaziz Al Hajeri, Kuwait’s Minister of
journey “reiterates our commitment to advancing energy Finance, Minister of State for Economic Affairs and
policies that are beneficial not only to our Member Investments and Minister of Oil, said he was hon-
Countries, but also to the global community at large.” oured to represent his country at the Al-Shaab Hall
celebration.
OPEC bulletin 7–8/23

Al Hajeri stressed that cooperation and dialogue had

Other OPEC Founders
played an effective role in OPEC’s work for over six dec-
The four other OPEC Founders — the IR Iran, Kuwait, ades, and undoubtedly this role would continue in the
Saudi Arabia and Venezuela — were also represented. future for the benefit of producers, consumers, inves-
The Minister of Energy of Saudi Arabia, Prince Abdul tors and the global economy as a whole.

85
 He added that Kuwait was investing as part of its the sovereign, inalienable and permanent defence of
Anniversary celebration

declared strategic plans to continue to play an enhanced their natural resources over the past six decades.
role in the world as a secure source of energy and called He also reaffirmed Venezuela’s commitment to the
for investments in all sources of energy to ensure that Organization, and stressed the importance of OPEC and
the world’s growing needs were met. the DoC remaining focused on a stable and balanced oil
The IR Iran was represented by its Governor for OPEC, market.
Dr Amir Hossein Zamaninia, who said OPEC was the only
organization from the developing world that had had a
President, Secretary General, other
major global economic impact in the past six decades or
Ministers
more. He added that “Member Countries of this organi-
zation seek to achieve stability in the global oil market.” Antonio Oburu Ondo, President of the OPEC Conference
Zamaninia also referenced the historic nature of and the Minister of Mines and Hydrocarbons of Equatorial
the Organization’s cooperation despite the existence Guinea, also provided remarks, reflecting upon the hon-
of some differences among Member Countries. He said our of being Conference President in 2023. He noted
that OPEC had been successful in maintaining common that he was following in a long line of esteemed OPEC
principles and ethics. Conference Presidents that could be traced back to the
Venezuela’s OPEC Governor, Eng Angel Gonzalez very first Meeting of the Conference in September 1960.
Saltron, represented his country and paid tribute to Looking around the hall, he added that “what was
the Founding Fathers. He recalled the statement of set in motion back in September 1960 was a pioneer-
Venezuela’s Alfonso after the meeting in September ing act, one breaking new ground for developing nations
1980, when he said: “We are united, we are making across the world. It was an undertaking that we all ben-
history”. efit from today.”
He noted the fundamental role OPEC had played in The OPEC Secretary General, Haitham Al Ghais,
the national economy of its Member Countries through said it was great privilege to stand in Al-Shaab Hall, the
OPEC bulletin 7–8/23

86 Manaf Abdulaziz Al Hajeri, Kuwait’s Minister of Finance, Dr Amir Hossein Zamaninia, IR Iran’s Governor for OPEC.
Minister of State for Economic Affairs and Investments and
Minister of Oil.
 birthplace of OPEC, and extended the Organization’s
deep gratitude to the Iraqi Government, the oil ministry
and the people of Iraq for hosting the event and preserv-
ing this historic monument.
Recalling the events on September 1960, Al Ghais
said that the Founders had “had the courage to do some-
thing different, to stand up for their sovereign right to
decide what happens to their indigenous resources …
to forge a new path for oil-producing countries.”
He added that OPEC’s history was more than just an
appendage to the history of oil. “Now with 13 Member
Countries, it is a story of a family of nations and popula-
tions. A group that has faced and overcome many chal-
lenges and adversities. It is a story of an Organization
evolving to become an established and respected part
of the international energy community.”
The United Arab Emirates’ Minister of Energy and
Infrastructure, Suhail Mohamed Al Mazrouei, also spoke
at the gathering and said that OPEC in Baghdad was an
affirmation of the strengthening and consolidating spirit
of the Organization.
He added that joint teamwork was always a source
of positive results and a pillar of strength for cooperation
and unity, indicating that the main objective of OPEC and Antonio Oburu Ondo, President of the OPEC Conference and
Equatorial Guinea’s Minister of Mines and Hydrocarbons.

OPEC bulletin 7–8/23

Eng Angel Gonzalez Saltron, OPEC Governor for Venezuela. Suhail Mohamed Al Mazrouei, Minister of Energy and
87
Infrastructure, United Arab Emirates.
 The signed document, ‘The journey from
Baghdad — 63 years of progress’.

The journey from Baghdad –

Anniversary celebration
63 years of progress
We, the Heads of Delegation of the Organizatio
n of the Petroleum Exporting Countries (OPEC)
OPEC Secretary General, have accepted the invitation and the
OPEC+ remained on ensuring market stability and Baghdad, to commemorate the founding of OPEC
extended by the Government of the Republic of
in Al-Shaab Hall on 14 September 1960.
Iraq to

achieving a balance between demand and supply We recall the historic day when the five Founder Members
of OPEC and their Heads of Delegation – Dr Fuad
Rouhani
of Iran, Dr Tala’at al-Shaibani of Iraq, Ahmed
Sayed Omar of Kuwait, Abdullah al-Tariki of Saudi
in a way that supports global economic growth. Dr Juan Pablo Pérez Alfonzo of Venezuela – joined
safeguard their legitimate national interests and to support
Arabia, and
together around the premise of cooperation, with a commitment
to
long term enduring stability in the global oil market.

We celebrate the remarkable and visionary efforts of all

those who have worked so hard throughout OPEC’s
the Organization a success, including generations of Heads history to make
of State and Government, Ministers, Governors, National
Declaration resentatives, and other high-level Member Country experts,
decades: Secretaries General, Management and Staff
as well as those that have served the OPEC Secretariat
of all disciplines.
Rep-
over many

The principles upon which this Organization are founded

are timeless. They will continue to guide our work in
While at Al-Shaab Hall, the Heads of Delegation decades ahead. the years and

also signed a document, entitled, ‘The journey

from Baghdad — 63 years of progress’.
The document recalls the historic day Algeria Angola Congo Equatorial Guinea

of 14 September 1960, and reaffirms the

Organization’s core principles with a commit-
ment to safeguarding legitimate national inter-
Gabon IR Iran Iraq

ests and helping to ensure order and stability

in the global oil market.
Kuwait Libya Nigeria Saudi Arabia

Festivities and Gala dinner

United Arab Emirates Venezuela OPEC
The ceremony at Al-Shaab also included short
films on the history of OPEC and the history
Done in Baghdad this sixteenth day of June 2023.

of Iraq’s oil industry, as well as a dance and

musical performance on OPEC’s foundation.
The artistic performance traced the roots of Iraq
first finding oil, the early authority of the ‘Seven Sisters’, performances from a number of famous Iraqi artists. The
the seven vertically integrated oil companies that domi- themes focused on Baghdad and OPEC.
nated the world oil industry from the 1920s to the 1960s The dinner also included the opening of the
and 1970s, and the vital formation of OPEC in 1960. Baghdad International Caricature Gathering, with a
The evening Gala dinner saw cultural activities focus on oil, and the opening of the International Book
from various folk groups from across Iraq and musical Exhibition of Oil and Energy.

Gala dinner.
OPEC bulletin 7–8/23

88
 OPEC delegates attending the festivities in Baghdad.

Brief history of Al-Shaab Hall

Al-Shaab Hall, located in the Bab Al-Muaatham district

in the heart of Baghdad, was built by a Dutch company
in 1937.
Entering through the front of the hall there is a large
wooden swing door before one enters the main thea-
tre. The interior resembles a proscenium theatre, with
a frame set around the stage. This creates a ‘window’
around the scenery and performers.
Wikimedia Commons

The hall is attached to the previous headquarters

of the Ministry of Defence, which was in the past a
small castle-like building erected during the Ottoman
reign.
The birthplace of OPEC in 1960, Baghdad.

OPEC bulletin 7–8/23

89
 OPEC bulletin 7–8/23

90
Anniversary celebration

Impressions from the

 Anniversary celebration

OPEC bulletin 7–8/23

91
 OPEC bulletin 7–8/23

92
Anniversary celebration

Impressions from the

Anniversary celebration

OPEC bulletin 7–8/23

93
 Appointment in Azerbaijan
Azerbaijan visit

The OPEC Secretary General, Haitham Al Ghais, paid his first official visit to
Azerbaijan as head of the Organization in mid-June. The trip included a meeting
with the President of Azerbaijan, Ilham Aliyev, as well as talks with high-level
officials and visits to the Alley of Honour, the Alley of Martyrs and the Sangachal
Terminal. The OPEC Bulletin reports.

A
zerbaijan is often labelled as the cradle of the
modern oil industry. It was the location of many
‘firsts’ in the industry’s great ‘Oil Boom’ in the
latter half of the 19th century.
In 1846, more than a decade before Colonel Edwin
Drake struck oil on US soil for the first time, a 21-metre
well was drilled in Bibi-Heybat for oil exploration — the
first successfully drilled oil well in human history.
Within three decades, Azerbaijan witnessed the
building of the first wooden oil derrick in 1871, the first
distillery in 1876 and the first oil tanker in 1878.
This history still resonates today, and Azerbaijan’s
proactive role within the Declaration of Cooperation
(DoC) between OPEC and non-OPEC producers is further
testament to its leadership role.

Meeting with President Aliyev

The role of the DoC and Azerbaijan’s significant contri-
butions to it were a key element of the OPEC Secretary
General’s meeting with President Aliyev. Al Ghais
thanked the President for Azerbaijan’s important role
in the DoC and in helping promote oil market stability.
“Your Excellency, your leadership and wisdom are
evident, and they continue to guide our market balanc-
ing efforts through the DoC framework for the benefit of
all producing and consuming countries,” Al Ghais said.
The talks also touched upon the importance of
ensuring future investments in the oil industry, given
the increasing demand for energy as a result of global
economic growth. Both noted that the recent drop in
investments represented some cause for concern.
They also noted that the application of new technol-
OPEC bulletin 7–8/23

ogies was of particular importance with regard to reduc-

ing emissions.

94 Ilham Aliyev, President of Azerbaijan (r), with

Haitham Al Ghais, OPEC Secretary General.
 Parviz Shahbazov, Azerbaijan’s
Minister of Energy (r); with Haitham
Al Ghais, OPEC Secretary General.

Talks with Minister Shahbazov

The Secretary General also held talks with the Minister

of Energy of Azerbaijan, Parviz Shahbazov, discuss-
ing energy market developments, energy transitions,
energy security and the investment challenges facing
the industry.
Both commended the decisions taken by the DoC’s
23 participating countries at the 35th OPEC and non-
OPEC Ministerial Meeting in early June.
In addition, the two explored means of boosting the
ongoing cooperation between Azerbaijan and OPEC, and
within the DoC. “The goal of cooperation within ‘OPEC +’
is to provide the world with the necessary energy for eco-
nomic development. This can be possible using all types
of energy,” Secretary General Al Ghais stressed.
This was also referenced by Minister Shahbazov, who
emphasized the need for cooperation on a wider plat-
form, with the participation of Azerbaijan, OPEC, other
countries and organizations to help reduce emissions in
the oil and gas sector.

SOCAR
The State Oil Company of the Republic of Azerbaijan
(SOCAR) was also a port of call for the Secretary General,
including a meeting with the President of SOCAR,
Rovshan Najaf.
At the meeting, both noted with satisfaction that the
long-term cooperation between Azerbaijan and OPEC
remained effective. In this regard, they highlighted that
the OPEC+ format, with President Aliyev playing a lead-
ing role, was of great strategic importance and was mak-
ing a valuable contribution to oil market stability and
ensuring a balance between supply and demand.
Moreover, they emphasised the importance of sus-
tainably increasing hydrocarbon production with clean
technologies and underscored that SOCAR attached
OPEC bulletin 7–8/23

special importance to the application of low-emission

and innovative technologies.
SOCAR

95
Rovshan Najaf, the President of SOCAR.
Azerbaijan visit

Azerbaijan Oil Ministry

Visiting the Sangachal Terminal.

Sangachal Terminal four crude oil storage tanks — 25,500 barrels each in
capacity, with the ability to process, store and export in
The Secretary General also paid a visit to the Sangachal excess of six million tonnes of crude oil per year.
Terminal, which is located around 40 kilometres south of The STEP part of the terminal was expanded to
Baku. Construction of the terminal began in 1996 with receive, store and process oil from Azeri and Deepwater
the Early Oil Project (EOP), and oil was first exported in Gunashli sections of the Azeri-Chirag-Gunashli (ACG)
October 1997. The terminal is a vital link for Azerbaijan’s field and gas from the Shah Deniz field. It houses a
oil and gas industry. number of facilities, including three crude oil storage
The terminal covers an area of almost 700 hectares, tanks each with a capacity of 880,000 barrels and ACG
making it one of the world’s largest oil and gas termi- oil processing facilities
nals. It consists of two main parts: the EOP and the In 2022, the Sangachal Terminal exported more
Sangachal Terminal Expansion Programme (STEP) that than 232 million barrels of oil and condensate, accord-
was started in 2001. ing to BP Azerbaijan. This included about 225 million
The EOP part of the terminal was constructed to barrels through the Baku-Tbilisi-Ceyhan (BTC) pipeline
process, store and export oil from the Chirag offshore and around seven million barrels through the Western
field in the Caspian. This part of the terminal houses Route Export Pipeline (WREP).

Al Ghais receives a tour of the Sangachal Terminal.

OPEC bulletin 7–8/23

Azerbaijan Oil Ministry

96
 Al Ghais at the Eternal Flame monument.

Paying Respects
During his visit, Secretary General Al Ghais also paid Al Ghais honoured the memory of the national leader
his respects at Azerbaijan’s Alley of Honour and the of the Azerbaijani people, Heydar Aliyev, and laid a
Alley of Martyrs. wreath at his monument.
The Alley of Honour is a cemetery and memo- The Alley of Martyrs remembers those who have died
rial in Baku, which includes the graves of famous in the struggle for Azerbaijan’s independence and terri-
Azerbaijanis and Azerbaijan-affiliated expatriates, torial integrity, while Al Ghais also laid a wreath at the
including several Presidents, scientists and artists. Eternal Flame monument.

Al Ghais pays his respects at the monument of Heydar Aliyev.

OPEC bulletin 7–8/23

97
Azerbaijan visit

Haitham Al Ghais, OPEC Secretary General, speaks with the audience at ADA University.

Conversing with future leaders

While in Azerbaijan, OPEC Secretary General Haitham Al Ghais took the opportunity
to converse with the leaders of tomorrow at ADA University. In a relaxed atmosphere,
he was able to share his thoughts and exchange views on OPEC, OPEC+ and the
future of the oil industry.

“F ostering the talents of young people, such as

those in the audience today from ADA and other
institutions, empowering them with knowledge
past, he said, should be an inspiration to all of those
present in the audience.

and helping build the next generation of energy leaders

Azerbaijan and the DoC
is truly an inspirational endeavour”, said OPEC Secretary
General Al Ghais at ADA University in Baku. The Secretary General also talked about Azerbaijan, its
The university was established in January 2014 when role in the Declaration of Cooperation (DoC), and how
the Azerbaijan Diplomatic Academy and Information the latter had helped to revive the industry from two
Technologies University merged under a decree from major downturns from 2014 to 2016 and most recently
the President of Azerbaijan. during the COVID-19 pandemic.
Al Ghais also spoke of the long history of Azerbaijan’s In this regard, he said: “I would like to personally
oil industry, referencing that the many historic mile- thank His Excellency President Ilham Aliyev, who was a
stones of the industry would never have been reached vocal supporter of bringing OPEC and non-OPEC produc-
without a skilled and dedicated local workforce. This ers together in 2016. He has been a steadfast advocate
OPEC bulletin 7–8/23

Azerbaijan Oil Ministry

98
of the DoC, and his leadership honours his country’s
incredible history.
“I would also like to thank His Excellency Parviz
Shahbazov, Azerbaijan’s Minister of Energy for his tire-
less dedication to the common endeavours of the DoC.
He is a consummate diplomat, and he and his team have
been great hosts during our visit this week.”

Looking to the future

Additionally, Al Ghais emphasized the importance of
looking to the future, and encouraged those in the room
to be part of the industry going forward. He stated that
he firmly believed “that the future of this industry is Officials at ADA University.
bright.” environmental, social and governance constraints on
In this regard, he referenced OPEC’s World Oil financial institutions. This is disheartening, and particu-
Outlook (WOO) that sees energy demand increasing by larly impactful on countries with oil and gas resources,
a robust 23 per cent to 2045, and oil retaining the larg- such as Azerbaijan.”
est share of the energy mix, at 29 per cent, throughout He stressed that as an industry “it was vital we make
the outlook period. our voices heard. We need to underscore the value our
He added that the world would need all energies as industry has brought to the world, and the importance
economies grew, populations expanded, and given that of it to our future. We all know we have to get our energy
there remained a critical need to bring modern energy future right.”
services to the billions of people who continued to go
without.
Attracting young talent
At the same time, he added, “we recognize the need
to tackle climate change. At OPEC, we fully believe that In talking further about securing the future of energy,
the oil industry can be part of the solution, and help Secretary General Al Ghais said that young talent,
develop cleaner and more efficient technological solu- including in the audience today, could play a role in
tions and evolve the energy transition. helping the industry successfully navigate the new
“Or, as I am always keen to emphasize: energy tran- energy paradigm.
sitions. In describing the concept, we should use the He said: “Our industry offers dynamic opportuni-
plural, as I firmly believe that each nation has its own ties to young people with diverse skill sets and educa-
energy transition pathway. The capacities and national tional backgrounds in the sciences, technology, engi-
circumstances of developing countries must be taken neering and mathematics. It is an industry that gives
into account. bright young people like yourselves the chance to make
“The energy future is an ‘and’ question, not an ‘or’ a meaningful and sustainable contribution to their com-
question, he stated. “It is about meeting the world’s munity and the world at large.
energy needs and reducing emissions. Energy security “The tech-savvy youth of this generation are
for all and decarbonization must go hand in hand.” uniquely equipped to utilize the latest technologies and
innovations, and apply them to help adapt and enhance
this industry in the decades to come. ADA University,
Investment
and the many students I see before me, are at the fore-
What this future also requires is massive investment, front of creating the opportunities and managing the
with OPEC’s WOO seeing the oil industry alone requir- challenges that lie before the industry today.”
ing over $12 trillion in the period to 2045. He concluded by saying that he hoped, in some
OPEC bulletin 7–8/23

In recent years, however, said Al Ghais, “we have measure, to “have inspired you to take the baton and
heard calls from some to limit or stop funding for new run with it because the future is in the hands of the
oil and gas projects, and witnessed the impact of coming generations.”

99
Malaysia visit

Dato’ Seri Anwar Ibrahim, the Honourable Prime Minister of Malaysia (l), with Haitham Al Ghais, OPEC Secretary General.

Malaysian Mission
Towards the end of June, OPEC Secretary General Haitham Al Ghais delivered a keynote
address at the Energy Asia event in Kuala Lumpur. On the sidelines, he also met with
the Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim. The OPEC Bulletin reports.
OPEC bulletin 7–8/23

100
F
rom 26 to 28 June, delegates converged on Kuala Recalling Malaysia’s long oil industry history, dat-
Lumpur for the Energy Asia conference. It was an ing back to 1910, when the country’s first oil well was
opportunity to discuss and debate energy issues spudded on Bukit Telaga Minyak (Canada Hill) in Miri,
related to the region. Asia comprises advanced, devel- Sarawak, which is now a monument, Al Ghais also
oping and emerging economies moving at multiple underscored oil’s continuing importance to the country
paces and at different stages of economic development today, stating “I firmly believe in its future”.
and socio-economic standards.
Under the overall theme, ‘Charting Pathways for a
Oil: vital to the future
Sustainable Asia’, the conference focused on striking
the right balance between energy security, affordability What follows below is an extract from the speech deliv-
and sustainability, the need for intra-regional collabo- ered by the Secretary General at Energy Asia.
ration, and the importance of investments. “In OPEC’s World Oil Outlook (WOO), we see global
energy demand increasing by 23 per cent through
2045, and I see no credible way
Important partner
to address this without utilizing
These were issues deliberated on when Secretary all available energy sources, “Talk of no new investment in
General Al Ghais met with the Prime Minister of using energy market stability as
oil projects will only lead to
Malaysia, Dato’ Seri Anwar Ibrahim, where they also a guiding light.
explored ways to strengthen the ties between Malaysia “Renewables will play a energy chaos. We need energy
and OPEC.
Al Ghais thanked the Prime Minister in his key-
much greater role, and con-
trary to what some may say,
clarity, not energy chaos.”
note speech for Malaysia’s continued support for the OPEC Member Countries are
‘Declaration of Cooperation’ (DoC) between OPEC and already investing significantly — Haitham Al Ghais, OPEC Secretary General
non-OPEC producers, widely known as OPEC+. in this area. Gas, hydro, nuclear,
He said: “Malaysia’s effective participation in the hydrogen and biomass will also
DoC since it was inaugurated at the end of 2016 has expand, but it is clear that oil will remain an integral part
been instrumental in helping the oil industry overcome of the mix.
two historic downturns, most recently during the COVID- “Every data-based forecast that I have seen shows
19 pandemic.” that oil is irreplaceable for the foreseeable future. In
Al Ghais added that “we look forward to continu-
ing to work with the government’s Head of Delegation
to DoC meetings, His Excellency Mohammad Rafizi Bin
Ramli, Malaysia’s Minister of Economy and his team in
the coming months and years.”
The Secretary General also took the oppor-
tunity to thank Tan Sri Tengku Taufik, the
President & Group CEO of Petronas and
Chairman of Energy Asia. “I recall meet-
ing him earlier this year in Davos —
and listening to his views on a host
of topics, including the need for an
inclusive and sustainable energy
transition. He is an extremely elo-
quent advocate for the oil and
gas industry,” he said.
OPEC bulletin 7–8/23
iCEP

Haitham Al Ghais, OPEC Secretary

General, delivering a leadership address
at the Energy Asia conference. 101
 The Kuala Lumpur Convention
Centre was the venue for the
Energy Asia event.
Malaysia visit

technologies. For example, carbon

capture utilization and storage, clean
hydrogen technologies, the circular
carbon economy, and others.
“Meeting the expected future
energy growth, while also lowering global
emissions, requires unprecedented invest-
Sh
u
tte

ment and collaboration.”

rst
oc
k

Underinvestment
“Chronic underinvestment in the industry, not just oil,
but across all energies, is putting the viability of the whole
energy system at stake. It is a point I have continually
highlighted since becoming OPEC Secretary General.
“In our WOO, for the oil industry alone, investment
our WOO, we see global oil demand rising to 110 mil- requirements equate to $12.1 trillion, or over $500 bil-
lion barrels a day (mb/d) by 2045, and oil still making lion each year between now and 2045.
up about 29 per cent of the energy mix by then. “Recent annual levels have been significantly below
“A massive energy expansion is required, as we see this, due to industry downturns, the pandemic, and an
the global economy more than doubling in size, and increasing focus on the environmental and social and
the world’s population reaching 9.5 billion by 2045. governance issues.
Moreover, as we all know, there remains a critical need “All industry policymakers and stakeholders need to
to bring modern energy services to those billions that work together to ensure a long-term investment-friendly
continue to go without basic energy access in many parts climate, with sufficient finance available that works for
of the world. producers and consumers, as well as developed and
“While we must continue to provide more energy developing countries.
to the world, we also recognize the need to continu- “For oil, we have heard appeals over the last year
ally reduce emissions and decarbonize, subscribing to or so for producing countries to play a key role in ensur-
global best practices and cutting edge, best-in-class ing stable and sustainable global energy supplies. At
OPEC bulletin 7–8/23

102
the same time, however, we have heard constant calls Energy transitions
to end the financing of oil projects. The two sentences
simply do not fit together. “When I listened to my friend Tan Sri Tengku Taufik in
“Let me ask investors in the audience today: would you Davos earlier this year, a
invest if you did not see security of demand, particularly in line stuck out to me. He
an industry where returns can take a decade or more? said when talking about
“Talk of no new investment in oil projects will only lead the energy transition:
“Addressing the energy and
to energy chaos. We need energy clarity, not energy chaos. ‘Don’t sacrifice the good climate challenges must have
“We also need facts and not fantasy to take us for the perfect’. fairness at heart, making sure
through a just, inclusive and realistic transition.” “It makes absolute
sense to me. We can-
businesses, governments, and
not get everything abso- communities can come together to
Energy clarity
lutely right. Moreover, we deliver genuine and real change.”
“In recent years, we have heard of net-zero targets and need to recognize that we
scenarios in which global demand drops to around should be talking about
— Haitham Al Ghais, OPEC Secretary General
80 mb/d by 2030, which is more than 20 mb/d below energy transitions.
today’s level. We need to remember that 2030 is only “It has to be a plural,
six years from now! as I firmly believe that each
“Over the period to 2030, however, it is expected nation and people has to have their own energy transi-
that another half a billion people will move into cities tion pathway. The capacities and national circumstances
across the world as the global economy continues to of developing countries must be taken into account.
expand. “Addressing the energy and climate challenges must
“Being in Malaysia, and to put this in an under- put fairness at its heart, making sure businesses, gov-
standable context, this urbanization drive will require ernments, and communities can come together to
the addition of approximately 50 new Kuala Lumpurs. deliver genuine and real change.
“It goes without saying that the world will therefore “Standing here in Kuala Lumpur is a
need more, not less oil, alongside the need to continu- reminder of two things.
ously reduce emissions. “Firstly, that Asia is at the heart of our
“This returns to the need for facts and energy clarity. global energy future. It has to have its own
“What has become apparent in the past few years say in the challenges related to its energy
or so is that references to net-zero numbers have sown security, availability and the need to reduce
confusion among investors and policymakers. This is emissions.
not a positive recipe for producers or consumers.” “Secondly, the vital role of Malaysia,
both as a partner with OPEC in the DoC and
as a regional and global energy leader,
through both the national government,
and its national oil company, Petronas.
“At OPEC, we very much look forward
to continuing our fruitful collaboration
with Malaysia, and ensuring we deliver
the energy clarity we all need.” OPEC bulletin 7–8/23
Energy Asia / iCEP

103
 OPEC and OPEC Fund
OPEC & OPEC Fund

sign groundbreaking
Memorandum of Understanding

Dr Abdulhamid Alkhalifa,
Director-General of OFID
(r); with Haitham
Al Ghais, OPEC Secretary
General.
OPEC bulletin 7–8/23

104
O
n 13 June, OPEC signed a Memorandum of The original Member Countries of OPEC became
Understanding (MOU) with its sister organ- OPEC Fund’s Member Countries and to this day most of
ization, the OPEC Fund for International the OPEC Fund’s members also belong to OPEC, includ-
Development (OFID). ing Algeria, Gabon, IR Iran, Iraq, Kuwait, Libya, Nigeria,
“There was a ceremony between the Secretary Saudi Arabia, the United Arab Emirates and Venezuela.
General (of OPEC, Haitham Al Ghais) and Director- The OPEC Fund has grown over the years and has
General (of OPEC Fund, Dr Abdulhamid Alkhalifa) and committed over US$24 billion to development projects
the teams involved in developing this framework for in over 125 countries to date.
cooperation,” explained OPEC’s General Legal Counsel “At the beginning of His Excelleny Al Ghais’s tenure as
Leonardo Sempértegui, OPEC’s focal point for collabo- OPEC Secretary General, the OPEC Fund Director General,
ration with the Fund. Dr Alkhalifa, brought up the issue of collaboration and
The OPEC Fund was established in 1976, follow- a high-level group was created with management lev-
ing the first Summit of Heads of State and Government els from both sides to define areas and mechanisms of
in Algiers in 1975. The resulting document, The First effective cooperation.
Solemn Declaration, became the first international “This was a bottom-up process,” said Sempértegui.
instrument to address the concept of South-South coop- “Members from different departments of both organi-
eration. It considered the plight of poorer nations and zations met and determined the areas in which collab-
called for a new era of cooperation in international rela- oration was more likely to bear fruit.”
tions in the interest of world economic development and There will be a quarterly monitoring of progress to
stability. ensure that concrete results are being delivered in areas
Through the OPEC Fund, OPEC countries have been such as IT, public relations, and the legal sphere, said
able to embark on ambitious socioeconomic develop- Sempértegui.
ment programmes for the benefit of other developing “We can share resources, exchange knowledge,
countries. create efficiencies and strengthen bonds.”

Inside the MoU

The MoU specifically states that OPEC and the OPEC Fund are activities, the Vienna Energy Scholar Programme (VESP), and
sister organizations with common Member Countries and have other visiting student groups and social events.
maintained close cooperation and collaborated in various • Sharing knowledge and best practices, as well as co-hosting
areas in the past, including information technology, commu- events to enhance legal awareness in relation to the relevant legal
nications, and social and other activities. The organizations fields applicable to both Parties.
entered into an MoU on IT-related collaboration on 3 August • Jointly identifying and preparing learning and development
2012, for example. programmes and projects where cooperation would optimize
The new MoU provides a broader framework for cooperation, success in collaborative implementation.
and facilitates and strengthens collaboration in areas of strategic • Sharing knowledge and best practices in finance, HR and
importance and activities, including, but not limited to: other relevant areas.
• Organizing workshops to share lessons learned on strategy • Collaborating to enhance the relationship and level of engage-
development and implementation within both institutions. ment and strengthen the relationship with the host country and
• Collaborating on areas of common interest relating to energy the City of Vienna.
access, energy security and climate action. • Exploring mechanisms to enhance ongoing collaboration via
• Jointly sharing knowledge and expertise related to data the VESP in order to enhance cooperation with Vienna and pro-
management, as well as sharing data that is relevant to both mote knowledge of topical energy-related issues among young
institutions. people residing in the host country.
OPEC bulletin 7–8/23

• Collaborating on information technology and procurement-re- • Establishing a regular consultation mechanism to review
lated matters. the above-mentioned collaboration, discuss lessons learned
• Collaborating on communications to promote joint activi- and draw on each other’s best practices and expertise in rela-
ties such as Member Country learning and knowledge-sharing tion thereto.

105
 OPEC SG visits Brunei
Brunei visit

Darussalam — the Kingdom of

Unexpected Treasures

I
n a first-ever visit by an undertaken in the same spirit of trust, mutual respect
OPEC Secretary General and dialogue that has underpinned the DoC since
to Brunei Darussalam — its inception. They also discussed strengthening ties
the latter translates as “Abode between Brunei Darussalam and OPEC moving forward.
of Peace”, an apt description Brunei Darussalam is sometimes referred to as the
for this beautiful country of Kingdom of Unexpected Treasures, which is not unrea-
roughly 452,000 inhabitants sonable given that many will not know that the country
— Haitham Al Ghais visited on plays host to one of the largest water settlements in the
23 and 24 June. world, nicknamed “the Venice of the East”, or have wit-
Brunei Darussalam is nessed Bandar Seri Begawan’s spectacular structures
located to the northwest of the island first-hand, such as the Omar Ali Saifuddien Mosque.
of Borneo, embraced geographically by the However, its successful history of producing and export-
Malaysian state of Sarawak, and looks north to the ing oil and gas is certainly well known, enabling this
South-China Sea. country of 5,765 square kilometres to punch above its
During his visit, Secretary General Al Ghais was size both regionally and globally.
honoured to meet the Sultan of Brunei Darussalam, Although Brunei Darussalam’s close co-operation
His Majesty Sultan Haji Hassanal Bolkiah Mu’izzaddin with OPEC in the framework of the DoC began in 2016,
Waddaulah Ibni Al-Marhum Sultan Haji Omar ‘Ali its long history with oil dates back to 1899 when the
Saifuddien Sa’adul Khairi Waddien, at the royal palace. first exploration well was drilled. Since the discovery of
The latter, Istana Nurul Iman, is located a few kilome- the Seria oil field in 1929 and a number of other com-
ters southwest of the country’s capital of Bandar Seri mercial discoveries, the country’s petroleum sector has
Begawan. gone from strength to strength.
The meeting focused on energy market develop- 1932 marked the first year in which Brunei
ments and the importance of market stability and invest- Darussalam exported oil, heralding the arrival of a new
ment to ensure energy security. Secretary General Al era in sustainable oil production in Southeast Asia.
Ghais praised Brunei Darussalam and its ongoing “lead- Building on these early successes, which were largely
ership role in the ‘Declaration of Cooperation’ (DoC) pro- driven by the Seria oil field for decades, technical
cess since its inception in December 2016 in the interest advances in the 1960s made offshore exploration feasi-
of oil market stability”. ble and resulted in even greater production than before,
Al Ghais also met with the Honourable Pehin Dato including from the appropriately named “Champion” oil
Halbi Yussof, Minister at the Prime Minister’s Office field, where production began in 1972.
and Minister of Defence II. Both praised the decisions The Billionth Barrel Monument — one of the coun-
OPEC bulletin 7–8 /23

made by OPEC’s 13 Member Countries and ten non- try’s most recognizable monuments — was built close
OPEC oil-producing countries at the 35th OPEC and non- to Seria Well No.1 in 1991 to commemorate Brunei
OPEC Ministerial Meeting (ONOMM) on 3 and 4 June, Darussalam’s production of the billionth barrel of crude

106
 Haitham Al Ghais, OPEC Secretary General (l), with His Majesty Sultan Haji Hassanal Bolkiah
Mu’izzaddin Waddaulah Ibni Al-Marhum Sultan Haji Omar ‘Ali Saifuddien Sa’adul Khairi
Waddien, Sultan of Brunei Darussalam.

oil that year. Fast forwarding to 2023,

oil and gas continue to make up a large
proportion of the country’s total exports,
with the petroleum industry account-
ing for approximately half of Brunei
Darussalam’s gross domestic product.
Today, Brunei Darussalam is one
of the wealthiest nations in Southeast
Asia, and its mainly youthful popula-
tion enjoys some of the world’s highest
living standards, including free health-
care and education. Unlike many parts of
the world, people in Brunei Darussalam
also have the ability to go shopping and
enjoy a meal in an air-conditioned mall
OPEC bulletin 7–8/23

in the capital before visiting pristine

rainforest just a few hours away if they
wish. An Abode of Peace indeed!

107

Haitham Al Ghais, OPEC Secretary General (l), with the Honourable Pehin Dato Halbi Yussof,
Minister at the Prime Minister’s Office and Minister of Defence II of Brunei Darussalam.
 22nd Nigeria Energy Week
Nigeria Energy Week

Strategic Conference
Nigeria’s foremost international energy conference, NOG, held the
22nd edition of its annual Energy Week, from 9–13 July 2023, under the
theme “Powering Nigeria’s Sustainable Energy Future.” It was held at
the International Conference Centre (ICC), Abuja FCT, Nigeria.

O
PEC Secretary General Haitham Al Ghais, deliv- without the highly valuable support of our loyal Member
ered pre-recorded remarks. The following is an Countries. Nigeria is no exception to this rule, and I would
extract from his speech: like to take a moment to express my sincere gratitude to
“Although I am unfortunately not able to join you the Government of Nigeria for its very generous support of
there in Abuja due to scheduling issues, it is my great the Seminar. Your contributions, along with those of our
pleasure to address this 22nd Nigeria Energy Week other Member Countries, have enabled us to organize an
Strategic Conference via teleconference from here at event that was at the highest calibre of professionalism.
the OPEC Secretariat. I look forward to my next visit to Excellencies, ladies and gentlemen,
Nigeria, which is currently in the planning stages. Allow me to turn now to the theme of this event,
Firstly, on behalf of OPEC, allow me to recognize His which is “Powering Nigeria’s Sustainable Energy Future”.
Excellency Bola Ahmed Tinubu who was officially sworn This is a theme that is both timely and appropriate,
in on Monday, 29 May 2023, as the new President of the especially as the industry continues to seek the right
Federal Republic of Nigeria. balance between pursuing two top priorities: 1) meeting
Excellency, as you undertake this the world’s rising energy needs while also 2) addressing
“The oil and gas industry has extremely important role in leading Nigeria climate change.
a long history of being at the forward into the years ahead, rest assured One thing is certain, to achieve both well, we will
cutting edge of innovation that you have the full support of OPEC need to see a fair, inclusive and equitable approach to

and technology, and now behind you. Indeed, we look forward to ensure that we leave no one behind as we navigate the
working closely with you and your esteemed energy transitions to come.
it has the possibility of leadership team, as together, we seek to This is of special importance to Nigeria and to Africa,
bringing that expertise continue promoting the path of stability and a continent that is home to seven of OPEC’s 13 Member
to bare on developing balance in the global energy markets. Countries.
Excellencies, ladies and gentlemen, We at OPEC will continue to work closely with our
cleaner and more efficient Just about one week ago, we hosted the Member Countries to ensure that all voices are heard
technological solutions to world’s top energy leaders in Vienna for the and all circumstances are considered in any negotia-
help unlock an emissions- 8th OPEC International Seminar. tions or discussions related to climate change.
Under the very timely and relevant There is simply no one right path to solving this
free future.”
theme Towards a Sustainable and Inclusive complex issue, but rather a series of solutions that are
Energy Transition, some of the industry’s geared to meeting the diverse needs of citizens no mat-
— Haitham Al Ghais, OPEC Secretary General leading experts had a chance to share their ter where they may come from.
insights on topics that will shape the future Dealing with these issues is nothing new for OPEC.
OPEC bulletin 7–8 /23

of the global energy industry. In fact, as an Organization, we have a long history

An event of this magnitude is a massive undertak- of supporting environmental issues and sustainable
ing, and we would not have been able to achieve success development.

108
 We have been directly involved in discussions that on track to reach that level, and, to make
led to the United Nations Framework Convention on things worse, we have in recent years
Climate Change. Starting back in 1990 with the UN even heard calls from some to limit or
Intergovernmental Negotiating Committee, these efforts stop funding for new oil and gas projects
have continued up until 2022 with COP27 in Sharm altogether.
El-Sheikh. This is, of course, unwise and is an
And now, OPEC is proud that COP28 will be hosted unrealistic scenario that would be par-
later this year by our Member Country, the United Arab ticularly devastating to developing coun-
Emirates. This COP will provide unique opportunities to tries that rely on revenues from their pre-
press for fair and equitable outcomes while also high- cious oil and gas resources to develop
lighting what our Member Countries are doing to help their economies. Africa, for example, is
address climate change, including ongoing activities blessed with an estimated 120 billion
related to diversifying their energy resources. barrels of proven oil reserves and 18 tril-
According to our World Oil Outlook, global primary lion standard cubic metres of natural gas.
energy demand is forecast to increase by a significant However, significant investment will
23 per cent in the period to 2045, which means we will be required to fully realize the potential
need all forms of energy. This includes solar, nuclear, of these resources to benefit Africa’s cit-
Haitham Al Ghais, OPEC Secretary
wind and waste-to-energy power. We will also require izens while also enabling the necessary General, delivered pre-recorded
innovative solutions such as carbon capture utilization mitigation actions needed to reduce the carbon footprint remarks at NOG.
and storage and hydrogen projects, in addition to the of the oil industry.
Circular Carbon Economy, which has received a positive In some cases, financial institutions are either lim-
endorsement from the G20. iting or tightly controlling how money is invested into
The oil and gas industry has a long history of being fossil fuels under environmental, social and governance
at the cutting edge of innovation and technology, and guidelines. This situation is hindering Africa’s progress
now it has the possibility to bring that expertise to bare despite the fact that Africa accounts for only around
on developing cleaner and more efficient technological three per cent of global greenhouse gas emissions.
solutions to help unlock an emissions-free future. Moving forward, OPEC will continue to do its part
While there is great promise in many of these areas, in promoting a pro-investment environment by taking
there is also a grim reality shared by far too many around the actions necessary to encourage oil market stability
the world who have no access to energy at all. under the Declaration of Cooperation.
According to the United Nations, for example, Excellencies, ladies and gentlemen,
733 million people do not have access to electricity. In conclusion, allow me to say that, despite the
Furthermore, one third of the world’s population use significant challenges that lie ahead for Nigeria,
dangerous or inefficient cooking systems, which causes Africa and OPEC, we are presented with just as many
a host of health-related problems. opportunities.
This uneven world of energy haves and have-nots And, as history has proven time and again, the only
will require that capacities and national circumstances way we will persevere through hard times is by working
of developing countries be taken into account when together. The long-standing relationship between OPEC
considering actions related to climate change. Policy- and Nigeria runs deep. Our tightly shared values go all
makers must be keenly aware that even the best inten- the way back to 1971, when Nigeria joined OPEC. The
tions can result in unintended consequences. And if contributions Nigeria has made to this Organization
policies are not well thought through, we could end since that time are simply too many to list here today.
up making things worse, with the potential for height- And now, as we look ahead, OPEC will continue to
ened volatility, energy shortfalls or other unwanted rely on Nigeria’s crucial support and cooperation as His
outcomes. Excellency, President Tinubu takes the country forward
One area of great concern I would like to highlight to help meet the needs of Nigerians now and in the
OPEC bulletin 7–8/23

is related to industry investment. The global oil sec- future.

tor alone will need a massive cumulative investment Thank you, and I wish you all a highly successful
of $12.1 trillion through to 2045. We are currently not Conference.”

109
ASB Launch

OPEC’s Annual
Statistical Bulletin
launched
OPEC has launched its flagship Annual Statistical Bulletin (ASB)
2023. The event was held at the OPEC Secretariat in Vienna.

O
PEC launched the 2023 edition of its Annual the policy making pro-
Statistical Bulletin (ASB) on Tuesday, 11 July cess. “OPEC is focused on
2023, at the OPEC Secretariat in Vienna, ensuring the quality and
Austria. The event was held in a hybrid format. The reliability of data research. The ASB is a vital component
publication and its key highlights were presented by of OPEC fulfilling its mission and contributing to oil mar-
OPEC Secretary General, Haitham Al Ghais, followed by ket stability, in the interests of producers, consumers
a presentation and a panel discussion. A video featur- and the global economy,” he added.
ing the publication’s highlights was also shown during The team from the OPEC Secretariat fielding
the launch. Dr Jakob Müllner, Associate Professor and questions during the launch was led by Dr Ayed
Academic Director at the WU Executive Academy, the S. Al-Qahtani, Director, Research Division; Huda
sponsor of the event, delivered remarks at the event’s Almwasawy, Head, Data Services Department;
opening. The launch was moderated by Eithne Treanor, Mhammed Mouraia, Statistical Systems Coordinator; Dr
Founder & CEO, ETreanor Media. Mohamed Khalefa Sarrab, IT Development Coordinator;
In his remarks, the SG stated, “The Annual Statistical Dr Mohammad Sattar, Senior Statistician; and Dr
Bulletin (or ASB in brief) is a publication that OPEC is Pantelis Christodoulides, Senior Statistical Research
highly proud of. Now in its 58th edition, its significance Analyst. Some of the highlights which were discussed
and relevance has only grown since its inaugural release by the panel included:
in 1965.” 1. Total world crude oil production increased in 2022
OPEC bulletin 7–8 /23

In his remarks, the SG emphasized that accurate by 3.46 million barrels per day (mb/d) or 5.0 per
data and impartial oil market analysis play a role in cent, as compared to the 2021, marking the sec-
supporting solutions for today’s challenges alongside ond consecutive annual increase since 2020, to

110
 average of 72.80 mb/d. OPEC crude oil production
rose year-on-year (y-o-y) by 2.53 mb/d, or 9.6 per
cent, while crude production by non-OPEC countries
rose by 0.92 mb/d, or 2.1 per cent.
2. With an average of 99.56 mb/d in 2022, world oil
demand grew by 2.49 mb/d y-o-y, or by 2.6 per
cent and almost reached pre-pandemic annual
average levels. Oil demand grew y-o-y in almost
every region and the largest gains were recorded
for OECD Americas, OECD Europe, India, Other Asia,
the Middle East and Africa. Oil demand in OPEC
Member Countries was bullish in 2022, gaining
0.57 mb/d or 6.9 per cent, y-o-y. Distillates and gas-
oline accounted for around 54.9 per cent of 2022
world oil demand with an upward trend during the
OPEC bulletin 7–8/23

years 2021 and 2022. Residual fuel oil require-

ments were about 6.7 per cent of total oil demand
in 2022.

111
ASB Launch

Presenting the ASB 2023 (from l–r): Dr Ayed S Al-Qahtani, Director of the Research Division; Haitham Al Ghais, OPEC Secretary General; and Dr Jakob
Müllner, Associate Professor and Academic Director at the WU Executive Academy of the Vienna University of Economics and Business.

3. World refinery capacity increased in 2022 by an

additional 0.76 million barrels per calendar day
(mb/cd) to stand at 102.20 mb/cd. The Non-OECD
region, particularly the Middle East and China
recorded refining capacity additions. Refinery
capacity in the OECD declined for the fourth con-
secutive year in 2022. Globally, refinery through-
put increased by 2.19 mb/d or 2.7 per cent to reach
83.84 mb/d in 2022 amid robust oil demand.
4. OPEC Member Countries exported an average of
21.39 mb/d of crude oil in 2022, a strong increase
of about 1.73 mb/d, or 8.8 per cent, compared to
2021 and remaining slightly below pre-pandemic
levels. Following the pattern seen in previous years,
the bulk of crude oil from OPEC Member Countries
— 15.20 mb/d or 71.1 per cent — was exported to
Asia. Considerable volumes of crude oil — about
3.86 mb/d — were also exported to OECD Europe
Dr Jakob Müllner. in 2022, compared with 3.27 mb/d recorded in
2021. OECD Americas imported 1.07 mb/d of crude
oil from OPEC Member Countries, which was about
0.13 mb/d, or 13.9 per cent above the 2021 vol-
umes. Exports of petroleum products from OPEC
Member Countries averaged 4.46 mb/d during
2022, up by around 0.43 mb/d, or 10.6 per cent,
compared to 2021. Imports of petroleum prod-
ucts by OPEC Member Countries averaged at 1.67
mb/d in 2022, roughly 0.17 mb/d, or 11.1 per cent,
OPEC bulletin 7–8 /23

higher than in 2021.

5. World proven crude oil reserves stood at 1,564 bil-
lion barrels (bn b) at the end of 2022, higher by 17

112
Eithne Treanor moderated the event.
Dr Ayed S Al-Qahtani, Director of the Research Division.

bn b, or 1.1 per cent from the 2021 levels. Proven

crude oil reserves in OPEC Member Countries
increased marginally to 1,244 bn b at the end
of 2022, following a decline during 2021. At the
end of 2022, world proven natural gas reserves
increased by 2.4 per cent to approximately 210.06
trillion standard cubic metres (tr s cu m). Proven
natural gas reserves in OPEC Member Countries
stood at 75.12 tr s cu m at the end of 2022, up 1.2
per cent from the level at the end of 2021.
6. The OPEC Reference Basket averaged $100.08/b in
nominal terms during 2022, up from $69.89/b in
2021, an increase of $30.19/b, or 43.2 per cent.
The average volatility was $12.33/b, or 12.3 per
cent, relative to the yearly average.
First published in 1965, the ASB, one of the
Organization’s flagship publications, continues to pro-
vide a broad range of statistics and figures on the global
energy industry, particularly focusing on oil and natu- Huda Almwasawy, Head of the Data Services Department.
ral gas, in addition to major key economic indicators,
serving as a leading source of reliable data for officials,
policymakers, industry experts, analysts, researchers,
members of academia and other stakeholders. The pub-
lication features comprehensive annual data on the
global oil and gas supply chain, particularly on OPEC’s
13 Member Countries.
The publication is available as an interactive
version and a PDF on the OPEC website, as well as
OPEC bulletin 7–8/23

through a smart app compatible with iOS and Android

platforms.

Mhammed Mouraia,
113
Statistical Systems Coordinator.
 OPEC SG participates in G20
G20

Energy Ministerial Meeting

At the G20 Energy Ministerial Meeting in Goa, India, on 22 July,
OPEC Secretary General, Haitham Al Ghais, delivered remarks
and met with a number of other high-level energy industry
stakeholders to highlight OPEC’s views on energy transitions,
that there is no one-size-fits-all pathway to a sustainable
energy future, and the importance of continued investments
into the oil industry.
Haitham Al Ghais, OPEC Secretary General met
with many dignitaries at G20, including ...

T
he G20 Energy Ministerial Meeting in Goa, held
under India’s G20 Presidency with the theme Meeting this growth, ensuring energy security and
‘One Earth, One Family, One Future’, focused on affordable access, while also lowering global emissions
sharing, collaborating and building on the solidarity in line with the Paris Agreement, he added, “requires all
among G20 members and other stakeholders present energies, technologies, and unprecedented investment
to accelerate clean, sus- and collaboration.”
tainable, just, afforda- The oil industry alone required global investments
“At OPEC we believe that
ble and inclusive energy of $12.1 trillion between now and 2045, he said, before
policymakers and industry transitions which follow stressing that there had been increasing calls over the
stakeholders need to work together various pathways. past few years to end financing of oil projects.

to ensure a long-term investment- In his remarks at the He added: “OPEC believes this is neither pragmatic
meeting, OPEC Secretary nor constructive for the way forward. Following this path
friendly climate for all energies.” General Haitham Al will severely affect economies, constrain social mobility,
Ghais underscored the limit affordable energy access and exacerbate energy
valuable relationship poverty.
— Haitham Al Ghais, OPEC Secretary General
OPEC has with India as a “At OPEC, we believe that policymakers and indus-
key strategic partner. He try stakeholders need to work together to ensure a long-
stated that OPEC looked forward to working closely with term investment-friendly climate for all energies. One
India and the G20 to help promote a sustainable energy that works for producers and consumers, as well as
future for the world. developed and developing countries.”

More energy and investment Working together

In this regard, he noted that in the decades ahead, what Noting that a key message from the recent 8th OPEC
was clear was that the world would need more energy, as International Seminar was that energy security for all
populations expanded and economies grew. “In OPEC’s and decarbonization must go hand-in-hand, Al Ghais
OPEC bulletin 7–8 /23

World Oil Outlook, global energy demand will rise by 23 also took the opportunity to state unequivocally that
per cent between now and 2045.” OPEC Member Countries were ready, willing and able

114
 ... HRH Prince Abdul Aziz Bin Salman, Minister of Energy, Kingdom of Saudi Arabia ... ... Suhail Mohamed Al Mazrouei, Minister of Energy and
Infrastructure, United Arab Emirates ...

to play a key role in providing energy to the world and

reducing emissions.
The importance of collaboration was emphasized
in the G20 Energy Ministers communiqué, which also
noted: “We firmly believe that energy security, energy
access, market stability, and energy affordability need
to be advanced simultaneously while advancing energy
transitions, in pursuit of economic growth and prosper-
ity, and ensuring access to modern energy for all, leaving
no one behind.
“We also recognize the urgent need for advancing
energy transitions, through various pathways, for con-
tributing towards achieving our sustainable development
goals as well as global net zero greenhouse gas emis- ... Shri Hardeep S Puri, India’s Minister of Petroleum and Natural Gas and Minister
sions/carbon neutrality by or around mid-century.” of Housing and Urban Affairs ...

OPEC bulletin 7–8/23

115

... Takagi Kei, Japan’s Parliamentary Vice Minister of Foreign Affairs ... ... and Eng Mohamed Hamel, GECF Secretary General.
 Iraq and Saudi Arabia boost
OPEC Member Countries

ties through energy and power

Iraq and Saudi Arabia have recently signed several landmark energy
and power agreements in yet another sign that the two countries are
coming closer to each other. Ammar Abdulhafedh looks at how these
developments are ushering in a new era of cooperation.

T
he two neighbours, Iraq and Saudi Arabia, share Iraq’s Minister of Electricity, Engineer Ziyad Ali Fadel,
a land border of over 800 kilometres and today said: “The first stage of the electrical power transmission
the countries are advancing diplomatic relations, will provide Basra city with 500 megawatts (MW) of elec-
further evolving bilateral trade and are aligned on devel- tricity. And it will be separated from the Iraqi National
opments through participation in the ‘Declaration of Electricity Transmission Grid and connected directly to
Cooperation’ (DoC). the GCC Interconnection Authority. In the second stage,
In recent years, there has been much shuttle diplo- when the energy transmission reaches the capacity of
macy between Baghdad and Riyadh, and this 2,000 MW there will be liabilities that need to be imple-
came to fruition in a number of agree- mented from both Iraq and the GCCIA to reach 2,000 MW
ments and projects in 2022 and 2023. of electricity.
“The third stage is the most ambitious stage, as the
electrical power transmission is estimated to reach the
Linking power grids
capacity of 8,000 MW of transmitted electricity and will
In January 2022, the two countries connect the GCCIA with Basra, Mosul, and Baghdad to
announced that they had signed a memoran- Turkey with a duration of nine to ten years of work.”
dum of understanding (MoU) to link their power According to figures from the Iraqi Ministry of
grids. “We aim to achieve optimal investment in the Electricity, its national generators only produce around
electrical connection with Iraq,” said HRH Prince Abdul 20,000 MW, while the country consumes 31,000 MW.
Aziz Bin Salman, Saudi Arabia’s Minister of Energy at From the perspective of Iraq and Saudi Arabia,
the signing ceremony. Prince Abdul Aziz and Hayan Abdulghani Abdulzahra
What followed in July 2022 was a broader agree- Alsawad, Iraq’s Deputy Prime Minister for Energy Affairs
ment between Iraq and the Gulf Cooperation Council and Minister of Oil held a meeting in the Saudi Arabian
Interconnection Authority (GCCIA). This was taken on capital Riyadh in November 2022. The two discussed
the sidelines of the Jeddah Security and Development matters of common interest in the fields of energy and
Summit and is set to be split into three stages. this meeting was the prelude to considerable activity in
2023.

“What connect us is not just electricity lines and 2023: a year of progress
pipelines, but rather veins and arteries. We share
In June 2023, Prince Abdul Aziz and Minister Fadel, cel-
families and tribes ... we seek to implement projects
ebrated the start of the power connection between Iraq
inside Iraq to help the country to achieve electricity and the GCCIA.
stability ... we hope that the electricity interconnection
OPEC bulletin 7–8 /23

Speaking at the event, Prince Abdul Aziz stated,

with Iraq will be the starting point for regional and “the visit has great significance, and we find it a good
international electrical power linkage.” and fruitful opportunity to expand the horizons of

— HRH Prince Abdul Aziz Bin Salman,

Saudi Arabia’s Minister of Energy
116
 HRH Prince Abdul Aziz Bin Salman,
Saudi Arabia’s Minister of Energy (r)
and Hayan Abdulghani Abdulzahra
cooperation and joint work between the two countries.” develop Iraq’s giant Akkas gas field. The initial agree- Alsawad, Iraq’s Deputy Prime Minister
He added: “What connect us is not just electricity ment would allow Saudi Aramco to produce 400 million for Energy Affairs and Minister of Oil.
lines and pipelines, but rather veins and arteries. We cubic feet of gas per day.
share families and tribes ... we seek to implement pro- The Akkas field, which contains more than 5 trillion
jects inside Iraq to help the country to achieve electric- cubic feet of reserves, lies in Iraq’s Anbar province near
ity stability ... we hope that the electricity interconnec- the Syrian border.
tion with Iraq will be the starting point for regional and Saudi Arabia’s ACWA Power
international electrical power linkage.” company has also agreed to
Minister Fadel also underlined the value of the pro- build a 1,000 MW solar power
ject and its broad objectives. “It is considered an impor- plant in Central Iraq’s Najaf city
tant strategic project, as well as another link between in a joint venture. According
Iraq and the Gulf region and Arab states.” to Minister Fadel, it will be the
The media office of the Iraqi Prime Minister, first clean energy project in the
Mohammed S. Al-Sudani stated: “The Saudi-Iraq elec- country.
trical power agreement will lead to more stabilization of
the supply of electricity and lower costs.”
Burgeoning relationship
It added that “the project is a promising start for
Iraq to return to its regional status due to its important In recent years, Iraq and Saudi
strategic location, and establishes the first opportunity Arabia have advanced their links
to work with Arab countries. And it will allow Iraq to be in various sectors, and recent
Shutterstock

a hotspot for energy transmission to Europe and Asia”. developments in the power sec-
tor will be beneficial to all par-
ties, enabling Iraq to overcome
Gas and solar projects
power shortages, and furthering
In May 2023, the Governorate of Jeddah held the 5th interconnectivity in the region.
OPEC bulletin 7–8/23

session of the Saudi-Iraqi Coordination Council, which Alongside its vital cooperation through the DoC,
agreed to enhance cooperation in all fields. During the there are many positives developments in the relation-
event, Iraq also signed a MoU with Saudi Aramco to ship between Iraq and Saudi Arabia.

117
 OPEC Secretary General’s diary
Secretary General’s Diary

In the course of his official duties, Haitham Al Ghais, OPEC Secretary General, visits,
receives and holds talks with numerous dignitaries. The following records some of
those events.

13 June: Al Ghais (r) held a bilateral meeting with Kei Takagi, Parliamentary 30 June: Al Ghais (r) welcomed Sheikh Salem Abdullah Al-Jaber Al-Sabah,
Secretary for Foreign Affairs of Japan, at the OPEC Secretariat in Vienna. Kuwait’s Minister of Foreign Affairs, to the OPEC Secretariat.
OPEC bulletin 7–8/23

7 July: Al Ghais (r) received Dr Alvaro Silva Calderon from Venezuela, who 7 July: Al Ghais (r) was visited by Dr Omar Farouk Ibrahim from the African
118 served as OPEC Secretary General in 2002 and 2003, at the OPEC Secretariat. Petroleum Producers’ Organization (APPO), in the OPEC Secretariat..
7 July: Al Ghais (c) received Foday Mansaray (r), Director General of the Petroleum 7 July: Al Ghais (c) was visited by Renée van Heusden (r), Head of Oil & Gas; and
Directorate of Sierra Leone, at the OPEC Secretariat. Roberto Bocca, Head, Centre for Energy & Materials and Member of the Executive
Committee, World Economic Forum, at the OPEC Secretariat.

OPEC bulletin 7–8/23

7 July: Al Ghais (second l) welcomed representatives from the Abu Dhabi 10 July: Al Ghais (r) was visited by Jean Paul Prates, President and CEO of Petrobras,
National Oil Company (ADNOC), United Arab Emirates, at the OPEC at the OPEC Secretariat.
Secretariat.

119
Secretary General’s Diary

12 July: Al Ghais (r) was visited by Yusuf Abdulkarim Bucheeri, Ambassador 13 July: Al Ghais (l) welcomed Baker Fattah Hussen, Ambassador of the
and Permanent Representative of the Kingdom of Bahrain, in the OPEC Republic of Iraq to Austria and Permanent Representative to the United
Secretariat. Nations, to the OPEC Secretariat.
OPEC bulletin 7–8/23

19 July: Al Ghais (r) met with Suleiman Dauda Umar, Ambassador of the 3 August: Al Ghais (r) received Cheikh Tidiane Sall, Ambassador of the
Federal Republic of Nigeria to Austria and Permanent Representative to Republic of Senegal to Austria and Permanent Representative to the United
the United Nations in Vienna. Nations, at the OPEC Secretariat.

120
 Download
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21
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11 M
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Non Oil m ure ar 1
Feat ts
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ice m arke
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oil pr m
Cru de
mod
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Com ec onom
Wor
ld d 28
l de man
ld oi 37
Wor ly
l supp
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Wor ns
eratio 58
ery op ket
d refin nker mar 62
ke ts an Ta de
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Produ ed prod en ts
refin em
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Cru al st dem
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OPEC bulletin 7–8/23

121
 Visits to the Secretariat
Briefings

Students and professional groups wanting to know more about OPEC visit the
Secretariat regularly in order to receive briefings from the Public Relations and
Information Department (PRID). PRID also visits schools under the Secretariat’s
outreach programme to present on the Organization and the oil industry. Here we
feature some snapshots of such visits.

6 June Students from University of Oradea, Romania.

OPEC bulletin 7–8/23

6 June Students from Illinois, US.

122
11 July Visitors from Bundeswehr, Germany.

OPEC bulletin 7–8/23

2 August Students from Cagliari, Italy.

123
OPEC Fund News

OPEC Fund (except two portraits): SVTP.GOV.MW

In the field
A tour of the massive Shire Valley
Transformation Programme in Malawi
demonstrated progress
amid adversity, as well as environmental
and social governance in action.
By Howard Hudson, OPEC Fund
Khaled Al-Zayer, OPEC Fund,
Director, Eastern & Southern
Africa, Public Sector
Operations.
OPEC Fund
OPEC bulletin 7–8/23

Sonia Siserova, OPEC Fund,

Country Manager, Public Sector
Operations.

124
“Revolutionary,
even for the World Bank”

A n OPEC Fund delegation travelled to Malawi

in April 2023 to appraise the Shire Valley
Transformation Programme — a multi-sector
to this initiative is tremendous,” says Al-
Zayer. “It’s a complicated programme, so
several environmental experts were brought
project set to revolutionize the economy in the in to solve a number of problems that arose

Shutterstock
south of the country. Public Sector Director for during the construction phase. For example,
Eastern & Southern Africa Khaled Al-Zayer and the World Bank spent an additional $4 million
Country Manager, Sonia Siserova toured the site on a barrier to stop tigerfish migrating from the
alongside analysts and environmental experts Shire River to Lake Malawi.”
from the World Bank, the African Development Siserova adds: “This was important because every year. This project will provide more
Bank and others. Lake Malawi is such a strategic resource for the climate-resilient and sustainable agriculture
With Phase II co-financed for a total of just country, with so many people depending on the for the local communities, helping to mitigate
over $224 million, the programme will increase fishing industry. Tigerfish are generally apex both floods and droughts.”
agricultural productivity and commercialization, predators with voracious appetites, and they Indeed, Malawi was hit by yet another cyclone
while improving the sustainable management of can jump around two meters out of the water. in the form of Storm Freddy just one month prior
natural resources. Specifically, the programme The World Bank made a recommendation and to the visit. While the programme area was not
will provide access to reliable gravity-fed then built a three-meter barrier in the main canal heavily affected this time, violent flash floods
irrigation and drainage services, as well as to contain the tigerfish. It’s a good example and landslides caused extensive damage to
securing land tenure for well over 50,000 of environmental and social governance in homes, schools, health centres, agricultural
smallholder families — including more than action.” lands and infrastructure and left more than half
15,000 female-led households. The Shire Valley Transformation Programme a million people displaced and in urgent need
Siserova explains: “Shire Valley is one of the will also reinforce the management of of humanitarian assistance.
poorest areas in Malawi, where local people rely wetlands and protected areas, including the In response the OPEC Fund approved an
on agriculture, but cannot produce enough to nearby “Elephant Marsh” — an area spanning emergency relief grant of $300,000 in April
satisfy their needs. Many still rely on food aid. 60,000 hectares, which is home to hippos, 2023. Channelled through the International
A major part of the project is to bring together rare butterflies and 20,000 waterbirds. The Federation of Red Cross and Red Crescent
thousands of smallholders into collectives and marshland also plays an important role in water Societies, the funds addressed immediate
share resources such as seeds and livestock, storage, flood control and the supply of nutrient- needs, including shelter, healthcare, water
while building storage areas and new roads to rich sediment. Siserova says: “The dam and the and sanitation for more than 150,000 people
markets. Basically, upgrading the entire value intake are part of a natural reserve, so it’s been in five districts. The relief work also aimed to
chain. very important to build in a sustainable way to restore livelihoods and strengthen resilience
“The project covers a large area, comprising the highest of standards. To protect the reserve, by providing cash assistance and in-kind items.
not only the main canal, but also secondary a fence was temporarily erected, but will be Al-Zayer sums up: “The development impact
and even tertiary canals. Putting all this in removed once construction is finished and the of the project is excellent, covering everything
perspective, the World Bank representative who programme is operational.” from climate and environmental issues to
was touring the site with us said that they’d After visiting parts of the dam and declining soil fertility and quality of crops,
never done anything before on this scale. It’s intake, which are located in a rural disaster- beside various institutional challenges. We are
revolutionary, even for the World Bank.” prone area and which had been damaged now preparing downstream investments for
OPEC bulletin 7–8/23

Broader environmental aspects were by Storm Ana in January 2022, Al-Zayer Phase II and look forward to the opportunity of
also under scrutiny by specialists sent by reports: “Malawi is often hit with crises, participating in Phase III of this massive multi-
co-financing partners. “The attention given from droughts to cyclones, practically year programme.”

125
Noticeboard
Forthcoming events

Gastech Exhibition and Conference, 5–8 September 2023, Oil and Gas Asia, 13–15 September 2023, Kuala Lumpur,
Singapore. Details: dmg :: events, 6th floor, Northcliffe House, 2 Malaysia. Details: Informa PLC, 5 Howick Place, London SW1P
Derry Street, London W8 5TT, UK. Tel: +44 20 36 15 28 73; fax: 1WG, UK. Tel: +44 20 80 52 04 00; website: www.oilandgas-
+44 20 36 15 06 79; e-mail: conferencemarketing@dmgevents. asia.com.
com; website: www.gastechevent.com.
Oil and Gas Indonesia, 13–16 September 2023, Jakarta,
SPE Offshore Europe, 5–8 September 2023, Aberdeen, UK. Indonesia. Details: PT Pamerindo Indonesia, Menara Jamsostek,
Details: RX Global HQ, Gateway House, 28 The Quadrant Menara Utara, 12th floor, Unit TA–12–04, Jl. Jendral Gatot Subroto
Richmond, Surrey TW9 1DN, UK. Tel: +44 20 82 71 21 34; e-mail: No.38, Jakarta 12710, Indonesia. Tel: + 62 21 25 25 320; e-mail:
rxinfo@reedexpo.co.uk; website: www.offshore-europe.co.uk. indira@pamerindo.com; website: www.oilgasindonesia.com.

RIU Good Oil and Gas Energy Conference, 6–7 September 2023, 24 th World Petroleum Congress, 17–21 September 2023,
Perth, Australia. Details: Vertical Events, Suite 13–14, 186 Hay Calgary, AB, Canada. Details: World Petroleum Council Canada,
Street, Subiaco, 6008, Western Australia. Tel: +61 8 93 88 22 1408, 240 – 70 Shawville Blvd S.E., Calgary, AB T2Y 2Z3, Canada.
22; fax: +61 8 93 81 92 22; e-mail: info@verticalevents.com. Tel: +1 403 21 82 000; e-mail: info@24wpc.com; website:
au; website: www.riugoodoilconference.com.au. www.24wpc.com.

100 Years World Energy Council, 7 September 2023, TBA. Details: International Downstream Week, 19–20 September 2023,
The World Energy Council, 62–64 Cornhill, London EC3V 3NH, UK. Istanbul, Turkiye. Details: Euro Petroleum Consultants Ltd, 44
Tel: +44 20 77 34 59 96; e-mail: worldenergycouncil@fticonsult- Oxford Drive, Bermondsey Street, London SE1 2FB, UK. Tel: +44
ing.com; website: www.worldenergy.org/experiences-events/ 207 35 78 394; fax: +44 207 35 78 395; e-mail: kay_mitchell@
events/entry/100-years-world-energy-council-austria. europetro.com; website: https://europetro.com/idw.

Argentina Oil and Gas Expo, 11–14 September 2023, Buenos Aires, Tanzania Energy Congress, 20–21 September 2023, Dar Es
Argentina. Details: Messe Frankfurt Argentina, Mariscal Antonio José Salaam, Tanzania. Details: dmg :: events, 6th floor, Northcliffe
de Sucre 1530 – Piso 7, C1428DUT, Ciudad Autónoma de Buenos House, 2 Derry Street, London W8 5TT, UK. Tel: +44 20 36 15 28
Aires, Argentina. Tel: +54 11 70 78 48 00; e-mail: aog@argentina. 73; fax: +44 20 36 15 06 79; e-mail: info@tanzaniaenergycon-
messefrankfurt.com; www.aogexpo.com.ar. gress.com; website: www.tanzaniaenergycongress.com.

Latin American Refining Technology Conference, 12–14 Papua New Guinea Energy Summit and Exhibition, 26–28
September 2023, Rio de Janeiro, Brazil. Details: The World Refining September 2023, Port Moresy, Papua New Guinea. Details: dmg
Association, Bedford House, Fulham Green, 69–79 Fulham High :: events, 6th floor, Northcliffe House, 2 Derry Street, London
Street, London SW6 3JW, UK. Tel: +44 207 38 48 013; fax: +44 W8 5TT, UK. Tel: +44 20 36 15 28 73; fax: +44 20 36 15 06 79;
207 38 47 843; e-mail: enquiry@wraconferences.co.uk; web- e-mail: info@pngenergysummit.com; website: www.pngener-
site: https://worldrefiningassociation.com/event-events/lartc. gysummit.com.

Angola Oil and Gas Conference and Exhibition, 13–14 September Asia Refining and Petrochemicals Tech Forum, 27–28 September
2023, Luanda, Angola. Details: Energy Capital Power, 30 Hudson 2023, Hanoi, Vietnam. Details: Euro Petroleum Consultants Ltd,
St, De Waterkant, Cape Town 8001, South Africa. E-mail: sales@ 44 Oxford Drive, Bermondsey Street, London SE1 2FB, UK. Tel:
energycapitalpower.com; website: https://angolaoilandgas. +44 207 35 78 394; fax: +44 207 35 78 395; e-mail: info@euro-
com/event/angola-oil-gas-2023. petro.com; website: https://europetro.com/asiatech.

South East Asia Australia Offshore and Onshore Conference, Carbon Capture Technology Expo, 27–28 September 2023,
OPEC bulletin 7–8/23

13–14 September 2023, Darwin, Australia. Details: Informa Bremen, Germany. Details: Trans-Global Events Ltd, High Point, 3rd
Connect, Level 4, 24 York Street, Sydney, NSW, 2000, Australia. floor, Sydenham Road, Guildford, Surrey GU1 3RX, UK. Tel: +44 14
Tel: +61 2 90 80 43 07; e-mail: info@informa.com.au; website: 83 33 00 18-209; e-mail: charlie.brandon@trans-globalevents.
https://ntresourcesweek.com.au/seaaoc. com; website: www.carboncapture-expo.com/about.

126
 Available
online now:
OPEC bulletin 7–8/23

asb.opec.org
127
 Visit our website

www.opec.org
OPEC bulletin 7–8/23

128
The outlook for the oil market in 2024

Market Review
July 2023 Organi
zation
of the
Petroleu
m Expo
rting Co
untries

World GDP growth in 2024 is forecast at 2.5 per

cent, slightly below this year’s expected growth
level of 2.6 per cent. Key oil-consuming coun-
13 July
tries, including China and India, along with 2023

The ou
some other developing economies in Asia, will tlook fo Fe
r the oi ature article
l marke
t in 2024
:

continue their healthy growth levels and be re- Oil mar

ket high
Featur
lights
iii
Crude
sponsible for around half of next year’s global oil price e article
movem v
Comm ents
odity m 1
arkets
economic growth. This is under the assumptions Produc
World ec
World oi
onomy
l deman 11
7

d 28
that general inflation will continue retraction
t marke World oi
ts and l supply
refinery 37
operatio
Crude Tanker ns 51

in 2H23 and 2024. Tight monetary policies are and refin

Comm
Balanc
ed prod
ercial st
ock mov
market
ucts tra
de 60
57

also assumed to continue and key policy rates

e of su ements
pply an 65
d deman
d 70

to peak by the end of 2023. Moreover, central

banks are expected to engage in more accommo-
dative monetary policies by 2H24. The services including trucking, as well as healthy industrial,
sector is expected to remain the main global eco- construction and agricultural activities in non-
nomic growth driver for the remainder of 2023, OECD countries are expected to support diesel
with a normalization of the growth dynamic ex- demand. Light distillates are projected to be
pected in 2024, when industrial production supported by capacity additions, and petro-
picks up again. In the OECD, GDP growth is ex- chemical margins in non-OECD countries are
pected at 0.9 per cent in 2024, down from 1.1 expected to remain healthy.
per cent in 2023. In the non-OECD, 2024 GDP Non-OPEC oil supply is forecast to grow
growth is forecast at 3.9 per cent, the same level y-o-y by 1.4 mb/d in 2024, supported by healthy
as in 2023. Numerous uncertainties remain, to demand and upstream investment. Upstream
include high inflation, monetary tightening and capex investment in non-OPEC countries is
high global debt levels. expected at around $480 billion, roughly the
Global oil demand in 2024 is set to grow year- same level as 2023 and 9 per cent more than in
on-year (y-o-y) by a healthy 2.2 million barrels per 2022. US liquids production growth in 2024 is
day (mb/d), on the back of a continued rebound in forecast at 700,000 b/d, mainly from Permian
Chinese economic activity, and firm growth in oth- crude and non-conventional NGLs, as well
er non-OECD countries. Within the regions, OECD as from the Gulf of Mexico. Oil production in
oil demand is forecast to rise y-o-y by 260,000 Canada, Guyana, Brazil, Norway, Kazakhstan,
b/d, while non-OECD oil demand is projected to and Argentina is forecast to increase through
show a considerable increase of nearly 2.0 mb/d, new field start-ups, ramp-ups or the optimiza-
mostly in China and India, and supported by in- tion of existing projects.
cremental demand in other regions. The continued commitment of the countries
In terms of oil products, transportation fu- participating in the Declaration of Cooperation
els — including jet fuel and gasoline — are ex- (DoC) and the successful approach of being
pected to drive oil demand growth in 2024, precautious, proactive and pre-emptive and
with air travel expected to see a further recov- the carefully devised production adjustments
ery and expansion. Gasoline requirements will have added a considerable measure of stability
OPEC bulletin 7–8/23

continue to see support from steadily rising road to global oil market, based on which the solid
mobility in major consuming countries, such as oil market fundamentals seen this year are ex-
China, India and the US. Both on-road diesel, pected to extend into 2024.

129
 MOMR … oil market highlights
Market Review
July 2023
Crude oil price movements — The OPEC Reference unchanged from the previous month’s assessment. the Middle East-to-East route fell by 16 per cent
Basket (ORB) declined by 63¢, or 0.8 per cent, The main drivers of liquids supply growth for 2023 m-o-m, while rates on the Singapore-to-East route
month-on-month (m-o-m) to average $75.19/b are expected to be the US, Brazil, Norway, Canada, fell 23 per cent m-o-m.
in June. The ICE Brent front-month contract fell Kazakhstan and Guyana, while the decline is expect-
by 71¢, or 0.9 per cent, m-o-m to $74.98/b, and ed mainly in Russia. There remain uncertainties re- Crude and refined products trade — Preliminary
the NYMEX WTI front-month contract declined by lated to US shale oil output potential and unplanned data show US crude imports continued to pick up
$1.35, or 1.9 per cent, m-o-m to average $70.27/b. maintenance in 2023. For 2024, non-OPEC liquids seasonally in June to average 6.5 mb/d. US crude
The DME Oman front-month contract rose by 13¢, production is expected to grow by 1.4 mb/d. The exports recovered to an average of 4.1 mb/d, a
or 0.2 per cent, m-o-m to settle at $74.91/b. The main drivers for liquids supply growth are expected three-month high. The latest data for China shows
front-month ICE Brent/NYMEX WTI spread widened to be the US, Canada, Guyana, Brazil, Norway and crude imports rebounding in May to average
by 64¢ m-o-m to average $4.71/b in June. The fu- Kazakhstan, while the largest declines are expect- around 12.1 mb/d. The high level was driven by
tures forward curves of ICE Brent, NYMEX WTI and ed in Mexico and Azerbaijan. OPEC NGLs and non- new capacity coming on-stream and a return of
DME Oman weakened during the month, and hedge conventional liquids are forecast to grow by 50 refineries from maintenance. China’s product im-
funds and other money managers heavily cut bullish thousand barrels per day (tb/d) in 2023 to an av- ports increased for the fourth consecutive month,
positions in ICE Brent and NYMEX WTI, extending erage of 5.44 mb/d and by another 65 tb/d to an reaching a record high of just under 2.5 mb/d.
the previous month’s selloffs. average of 5.51 mb/d in 2024. OPEC-13 crude oil Gains were driven largely by outflows of LPG and
production in June increased by 91 tb/d m-o-m to fuel oil. India’s crude imports in May declined for
World economy — World economic growth in 2023 an average 28.19 mb/d, according to available the third month in a row, averaging 4.7 mb/d. In
remains broadly unchanged at 2.6 per cent and the secondary sources. contrast, both India’s product imports and ex-
initial forecast for 2024 economic growth is expected ports recovered from losses in the previous month
at 2.5 per cent. US economic growth for 2023 is re- Product markets and refining operations — m-o-m. Japan’s crude imports averaged 2.5 mb/d
vised up slightly to stand at 1.4 per cent, followed by Refinery margins rose in June to show solid gains in May, a drop of 400,000 b/d, or almost 15 per
0.7 per cent for 2024. Euro-zone economic growth across regions. In the US Gulf Coast (USGC), mar- cent, m-o-m. Japan’s product imports fell for the
for 2023 is revised down slightly to stand at 0.7 per gins recovered from the previous months’ losses to second consecutive month, driven primarily by a
cent, while growth in 2024 is forecast at 0.8 per reach a three-month high. Gains were seen across decline in naphtha inflows, which offset gains in
cent. Japan’s economic growth for 2023 is revised up the barrel, particularly for gasoline, as firm-driving gasoline and gasoil. Preliminary estimates show
slightly to 1.1 per cent, while growth in 2024 is fore- activities supported product markets. In Rotterdam, OECD Europe crude imports above March levels,
cast at 1.0 per cent. China’s 2023 economic growth refining margins were mostly supported by a strong amid increased flows to the Netherlands and
remains at 5.2 per cent, with economic growth fore- performance at the middle and bottom sections of France, although these were lower than in the
cast in 2024 at 4.8 per cent. India’s economic growth the barrel, while temporary unplanned outages led same month last year. Product imports into the
remains at 5.6 per cent in 2023 and is expected to to a contraction of product balances in Northwest region are expected to move seasonally higher,
expand by 5.9 per cent in 2024. Brazil’s economic Europe and this weighed on ARA key product in- supported by inflows to Turkey, remaining close
growth in 2023 is revised up to 1.3 per cent and is ventories. In Singapore, margin gains were more to year-ago levels in May and June.
expected to grow by 1.1 per cent in 2024. Russia’s limited, as the strength in transport fuels was partly
economic growth in 2023 is revised up to 0.4 per offset by negative performance in naphtha and high Commercial stock movements — Preliminary May
cent and a further recovery is anticipated for 2024 sulphur fuel oil (HSFO) markets. Global refinery in- 2023 data sees total OECD commercial oil stocks
with a growth forecast of 0.8 per cent. take in June continued to trend upwards and was up m-o-m by 20.2 mb. At 2,815 mb, they were 101
953 tb/d higher m-o-m at 81.9 mb/d, according mb lower than the latest five-year average and 140
World oil demand — World oil demand is expected to preliminary estimates. In the coming months, mb below the 2015–19 average. Within the com-
to grow by 2.4 mb/d in 2023, following an upward refinery intakes are expected to continue to be ponents, crude and products stocks rose by 4.1
revision of about 100,00 b/d from last month’s as- supported by seasonal fuel consumption. mb and 16.1 mb, respectively. OECD commercial
sessment, mainly due to higher demand seen in China crude stocks stood at 1,401 mb in May. This was
in 2Q23. OECD Americas is revised up slightly to ac- Tanker market — Dirty freight rates continued to 34 mb below the latest five-year average and 84
count for a better-than-expected performance in the show mixed movement in June. Very large crude mb lower than the 2015–19 average. Total prod-
US in 2Q23. Similarly, OECD Europe is revised up carriers (VLCCs) partially recovered from the previ- uct inventories stood at 1,414 mb, which was 67
slightly in 1Q23. In the non-OECD, demand was also ous month’s decline, with Middle East-to-East spot mb lower than the latest five-year average and 56
revised upward to account for bullish oil demand seen freight rates up 27 per cent m-o-m, amid increased mb below the 2015–19 average. In terms of days
in China in 2Q23 and a slight improvement in Latin flows to the East. A pickup in Atlantic basin activity of forward cover, OECD commercial stocks fell m-
America over the same period. For 2024, world oil and on eastward routes helped to firm sentiment in o-m by 0.4 days to stand at 60.2 days. This is 3.5
demand is forecast to grow by a healthy 2.2 mb/d, the larger vessel class, supporting rates. Suezmax days lower than the latest five-year average and
reaching about 104.25 mb/d. The OECD is antici- rates returned some of the previous month’s gains, 1.8 days less than the 2015–19 average.
pated to expand by 0.26 mb/d, with OECD Americas with rates on the USGC-to-Europe route declining
contributing the largest increase. The non-OECD is 20 per cent, amid more limited activity. Aframax Balance of supply and demand — Demand for
set to drive growth, increasing by almost 2.0 mb/d, spot freight rates fell across the board, with rates OPEC crude in 2023 is revised up by 100,000 b/d
with China, the Middle East and other Asia account- on the Caribbean-to-US East Coast route dropping from the previous month’s assessment to stand at
ing for the bulk of this growth, with further support back from the very strong levels seen in May, down 29.4 mb/d. This is around 1.0 mb/d higher than
OPEC bulletin 7–8/23

from India, Latin America, and Africa. by 34 per cent. Clean freight rates experienced de- in 2022. Based on the initial world oil demand
clines across all reported routes in June, as West of and non-OPEC supply forecast for 2024, demand
World oil supply — Non-OPEC liquids supply is ex- Suez rates softened again and momentum in the for OPEC crude is expected to reach 30.2 mb/d,
pected to expand by 1.4 mb/d in 2023, broadly East of Suez market dissipated further. Rates on 800,000 b/d higher than the 2023 level.

The feature article and oil market highlights are taken from OPEC’s Monthly Oil Market Report (MOMR) for July 2023. Published by the
Secretariat’s Petroleum Studies Department, the publication may be downloaded in PDF format from our Website (www.opec.org), provided
OPEC is credited as the source for any usage. The additional graphs and tables on the following pages reflect the latest data on the OPEC
130 Reference Basket and crude and oil product prices in general.
Crude and product price movements

August 2023 Organi

zation
of the
Petroleu
m Expo
rting Co
untries

In 1H23, negative sentiment dominated the In Rotterdam, despite

oil futures markets, amid macroeconomic un- firm gasoline exports,
certainties and concerns about considerable gasoil stock draws led to
interest rate hikes from major central banks, a significant contraction
including the US Federal Reserve (Fed) and the of the gasoline-middle
10 Augu
European Central Bank (ECB), as they attempt distillate price differ- st 2023

Crude
to reduce high inflation levels. Moreover, inves- ential of $24.85/b and prod Feat
uct pric ure article:
e movem
ents
tors remained cautious due to the temporary in July, compared to Oil mar
ket high
Featur
lights
iii
Crude
turmoil in the banking system earlier in the year $31.21/b seen in oil price e article
movem v
Comm ents
odity m 1
arkets
and data showing slower manufacturing activ- May. Produc
World ec
World oi
onomy
l deman 10
7

d 25
ity in major economies, in particular the US, In Singapore,
t marke World oi
ts and l supply
refinery 34
operatio
Crude Tanker ns 49

Europe and China. middle distillates and refin

Comm
Balanc
ed prod
ercial st
ock mov
market
ucts tra
de 58
55

On a monthly basis, between January and p r i ces t re n d e d

e of su ements
pply an 64
d deman
d 69

June, ICE Brent and NYMEX WTI declined by lower on improved

$8.93 and $7.89, or 10.6 per cent and 10.1 per availability amid rising re-
cent, respectively, to an average of $74.98/b finery runs in the Atlantic Basin. Naphtha’s
and $70.27/b. However, market liquidity con- prices’ overall performance remains weak, as
tinued to recover from low levels seen in 2H22, firm supplies from the Middle East and Russia
as the actions of OPEC and countries partici- caused the discount to Dubai to widen from
pating in the ‘Declaration of Cooperation’ con- $8.23/b in January to $17.90/b in July. In July,
tinue to contribute to market stability, reduce transportation fuel prices rebounded on the
volatility and provide long-term guidance to back of trans-Atlantic product exports and re-
the market. sidual fuel prices responded positively to de-
In July, the outlook for oil market fundamen- mand from the Middle East for power genera-
tals improved further, which was reflected in tion. These transatlantic product exports could
the strengthening of the market structure as all further benefit from a slower-than-expected
major oil futures prices turned to a firm back- economic recovery in China, the impact of the
wardation structure. For the month, ICE Brent Monsoon season on oil demand in the region,
increased by $5.18, or 6.9 per cent, m-o-m, to and soft demand from the petrochemical sector.
stand at $80.16/b, and the NYMEX WTI front- Despite the current elevated level of global
month contract increased by $5.76, or 8.2 per refinery runs, gasoline and middle distillate
cent m-o-m, to an average of $76.03/b. stocks remain well below the latest five-year av-
On the product side, fuel prices, in gener- erages in the US and Europe. Looking forward,
al, have eased from the record-high levels wit- refinery maintenance and potential production
nessed in the previous year across all regions, outages during the US hurricane season could
on greater product availability. potentially tighten the Atlantic Basin market,
In the US Gulf Coast, gasoline prices are hence prompting stronger economic incentives
once again supported by peak summer demand for East-to-West product flows. Similarly, pros-
to average $129.29/b in July, however, this is pects for healthy oil fundamentals in the second
considerably lower than the same time last half of the year, along with the preemptive, pro-
year. Jet/kerosene prices have also retracted active and precautious approach of OPEC and
to follow a more usual seasonal pattern, while non-OPEC producing countries to assess market
OPEC bulletin 7–8/23

gasoil prices are gradually recovering from a conditions and take necessary measures at any
multi-year low of $57.56/b in May, to average time and as needed, will ensure stability of the
$71.68/b in July. global oil market.

131
 MOMR … oil market highlights
Market Review
August 2023
Crude oil price movements — The OPEC World oil supply — Non-OPEC liquids supply is growth. Clean rates were mixed, with activities
Reference Basket (ORB) rose by $5.87, or 7.8 per expected to expand by 1.5 mb/d in 2023, a slight in the Atlantic basin supporting the West of Suez
cent, m-o-m to an average of $81.06/b in July. upward revision from the previous assessment. routes, while the return of Asian refineries from
The ICE Brent front-month contract increased by The main drivers of liquids supply growth for maintenance weighed on East of Suez flows.
$5.18, or 6.9 per cent, m-o-m to $80.16/b, and 2023 are expected to be the US, Brazil, Norway, Clean freight rates on the intra-Med route rose
NYMEX WTI front-month contract rose by $5.76, Kazakhstan Guyana and China, while the largest 23 per cent m-o-m, while rates on the Middle
or 8.2 per cent, m-o-m to average $76.03/b. The decline is expected from Russia. There remain East-to-East route declined 15 per cent.
DME Oman front-month contract rose by $6.25, uncertainties associated with US shale oil out- Crude and refined products trade — Preliminary
or 8.3 per cent, m-o-m to settle at $81.16/b. The put potential and unplanned maintenance in data show US crude imports remained at strong
front-month ICE Brent/NYMEX WTI spread nar- 2023. For 2024, non-OPEC liquids production levels in July, averaging 6.5 mb/d, while US crude
rowed in July m-o-m by 58¢ to average $4.13/b. is projected to grow by 1.4 mb/d, unchanged exports fell below 4 mb/d amid reduced flows to
The futures forward curves of ICE Brent, NYMEX from the previous assessment. For 2024, the Asia. China crude imports jumped to the second-
WTI and DME Oman steepened in backwarda- main drivers for liquids supply growth are ex- highest on record in June, averaging 12.7 mb/d,
tion during the month on improving oil market pected to be the US, Canada, Guyana, Brazil, although preliminary customs data shows crude
fundamental outlooks, and money managers in- Norway and Kazakhstan, mainly due to exist- inflows dropped to 10.3 mb/d in July, as the pre-
cluding hedge funds raised bullish positions in ing project ramp-ups. The largest declines are vious month’s arrivals dampened crude needs for
ICE Brent and NYMEX WTI. expected from Mexico and Azerbaijan. OPEC the month. China’s product imports were broad-
NGLs and non-conventional liquids are forecast ly steady near the previous month’s high levels,
World economy — World economic growth is to grow by 46 tb/d in 2023 to an average of 5.4 averaging 2.4 mb/d, while product exports de-
revised up slightly for both 2023 and 2024 to mb/d and by another 65 tb/d to an average of clined, led by sharp falls in gasoline and diesel
stand at 2.7 per cent and 2.6 per cent, respec- 5.5 mb/d in 2024. In July, OPEC-13 crude oil outflows. India’s crude imports declined for the
tively. US GDP growth for 2023 is revised up to production decreased by 836 tb/d m-o-m to an fourth month in a row in June to average 4.7 mb/d,
stand at 1.8 per cent, followed by 0.7 per cent average of 27.31 mb/d, according to available as the country moved towards the lower-demand
growth in 2024. Euro-zone economic growth for secondary sources. monsoon season. Japan’s crude imports declined
2023 is revised down to stand at 0.6 per cent, for the second-consecutive month to reach a
while growth in 2024 remains at 0.8 per cent. Product markets and refining operations — 12-month low of 2.3 mb/d in June. Preliminary
Japan’s GDP growth in 2023 remains at 1.1 Refinery margins in July continued to rise, with estimates indicate OECD Europe crude imports
per cent, followed by growth of one per cent in solid gains across all regions. In the US Gulf picked up at the start of 3Q23. Product imports
2024. China’s GDP growth remains at 5.2 per Coast, margins increased for the second con- into the region were seen down slightly as a de-
cent in 2023 and 4.8 per cent in 2024. India’s secutive month, mainly driven by the robust cline in gasoline inflows outpaced an increase
GDP growth remains at 5.6 per cent for 2023 performance of transport fuels, particularly in diesel imports.
and 5.9 per cent for 2024. Brazil’s GDP growth gasoline. In Rotterdam, product markets were
is revised up to 1.7 per cent and is expected to boosted by firm product exports to the US and Commercial stock movements — Preliminary
increase by 1.2 per cent in 2024. For Russia, high middle distillate requirements in the re- data for June 2023 sees total OECD commercial
both the 2023 and 2024 GDP growth forecasts gion. In Singapore, margin gains were driven oil stocks up m-o-m by 4.2 mb. At 2,828 mb, they
are revised up to stand at 0.6 per cent and one by sizeable stock draws and healthy regional were 74 mb lower than the latest five-year aver-
per cent, respectively. product demand, with notable strength regis- age and 119 mb below the 2015–19 average.
tered at the middle and bottom sections of the Within the components, crude stocks fell by 5.1
World oil demand — World oil demand in 2023 barrel. Global refinery intake in July continued mb, m-o-m, while product stocks rose by 9.3 mb.
is expected to grow by 2.4 mb/d, unchanged to trend upwards, moving 793 tb/d higher m-o-m OECD commercial crude stocks stood at 1,395
from the last month’s assessment. Upward revi- to average 81.9 mb/d, according to preliminary mb in June. This is 18 mb below the latest five-
sions to the 1Q23 based on actual data received estimates. In the coming months, refinery intakes year average and 70 mb lower than the 2015–19
for OECD America and OECD Europe were com- are expected to be supported by seasonal fuel average. Total product inventories rose by 9.3
pletely offset by downward revisions to 2Q23, consumption levels during the summer season. mb in June to stand at 1,433 mb. This is 55 mb
mainly in Europe and Other Asia. In the OECD lower than the latest five-year average and 49 mb
region, oil demand in 2023 is anticipated to Tanker market — The tanker market drifted lower below the 2015–19 average. In terms of days of
rise by 74 tb/d, to an average of 46.0 mb/d, in July, with Aframax and Suezmax spot freight forward cover, OECD commercial stocks fell m-o-
while in the non-OECD region, total oil demand rates approaching the lowest levels seen so far m by 0.1 days to stand at 60.4 days in June. This
is anticipated to rise by nearly 2.4 mb/d, to av- this year amid slowing of activities in the Atlantic is 2.7 days lower than the latest five-year aver-
erage 56.0 mb/d. basin for these vessels. Aframax spot freight age and 1.4 days below the 2015–19 average.
For 2024, world oil demand is forecast to rates on the Mediterranean-to-Northwest Europe
grow by a healthy 2.2 mb/d, unchanged from route declined 22 per cent, while Suezmax rates Balance of supply and demand — Demand for
the previous assessment. The OECD is anticipat- on the US Gulf Coast-to-Europe route fell 11 per OPEC crude in 2023 is revised down by 100,000
ed to expand by about 300,00 b/d, with OECD cent. VLCC rates experienced less of a decline b/d from the previous month’s assessment to
Americas contributing the largest increase. The as a pick-up in long-haul demand out of the stand at 29.3 mb/d. This is around 900,000 b/d
non-OECD is set to drive growth, increasing by Atlantic basin offset reduced activities out of higher than in 2022. Demand for OPEC crude in
around 2.0 mb/d, with China, the Middle East the Middle East. Spot freight rates on the Middle 2024 is also revised down by 100,000 b/d from
OPEC bulletin 7–8/23

and Other Asia contributing the largest share, East-to-East route declined 15 per cent m-o-m. the previous month’s assessment to stand at
with further support from India, Latin America However, freight rates overall remain at elevated 30.1 mb/d. This is around 800,000 b/d higher
and Africa. levels amid trade shifts supporting tonne-mile than in 2023.

The feature article and oil market highlights are taken from OPEC’s Monthly Oil Market Report (MOMR) for August 2023. Published by the
Secretariat’s Petroleum Studies Department, the publication may be downloaded in PDF format from our Website (www.opec.org), provided
OPEC is credited as the source for any usage. The additional graphs and tables on the following pages reflect the latest data on the OPEC
132 Reference Basket and crude and oil product prices in general.
Table 1: OPEC Reference Basket spot crude prices $/b
2022 2023 Weeks 26–30/2023 (week ending)
Crude/Member Country Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 30 Jun 07 Jul 14 Jul 21 Jul 28 Jul

Arab Light — Saudi Arabia 108.98 104.89 99.33 96.20 91.58 82.44 83.80 83.56 80.26 85.65 77.72 77.18 83.45 77.15 79.25 82.96 83.50 87.00

Basrah Medium — Iraq 105.36 97.66 91.16 89.45 85.66 76.07 77.82 78.33 75.33 81.75 73.32 73.03 78.82 72.79 74.74 78.38 78.77 82.30

Bonny Light — Nigeria 117.58 106.08 95.73 95.02 92.84 80.69 82.36 82.88 79.24 85.94 75.63 74.18 79.92 73.13 76.28 79.64 79.50 83.13

Djeno — Congo 105.18 92.17 82.37 85.66 83.65 72.93 75.41 75.05 70.84 77.45 68.37 67.28 72.64 66.23 69.00 72.36 72.22 75.85

Es Sider — Libya 114.03 101.17 90.47 93.91 91.25 77.53 81.01 81.45 77.39 84.00 75.32 74.23 79.69 73.18 76.05 79.41 79.27 82.90

Girassol — Angola 119.15 105.99 92.26 95.61 92.76 78.69 82.05 84.06 80.31 87.01 77.20 76.30 82.09 75.48 78.45 81.81 81.67 85.30

Iran Heavy — IR Iran 107.63 102.24 97.18 93.21 88.73 79.11 81.56 81.88 78.80 84.58 76.47 75.33 81.48 75.40 77.18 80.97 81.60 85.10

Kuwait Export — Kuwait 109.19 103.82 98.69 94.72 90.13 80.46 82.94 83.19 79.86 85.49 77.44 76.44 82.39 76.54 78.09 81.87 82.50 86.00

Merey — Venezuela 84.72 80.03 73.70 71.56 66.94 58.17 61.74 61.95 57.25 62.58 56.22 57.37 63.28 57.42 59.52 62.86 63.32 66.44

Murban — UAE 105.97 98.04 92.45 93.54 90.90 80.17 82.53 83.36 79.55 84.11 75.66 75.52 80.78 75.42 76.64 80.12 80.75 84.64

Rabi Light — Gabon 112.17 99.16 89.36 92.65 90.64 79.92 82.40 82.04 77.83 84.44 75.36 74.27 79.63 73.22 75.99 79.35 79.21 82.84

Saharan Blend — Algeria 115.83 104.22 92.72 95.66 93.60 83.03 83.76 84.05 80.29 85.40 76.42 75.23 80.29 74.18 76.65 80.01 79.87 83.50

Zafiro — Equatorial Guinea 116.60 103.50 90.72 93.61 92.12 80.28 81.29 82.24 79.29 85.90 76.82 75.28 81.45 74.18 77.67 81.21 81.07 84.70

OPEC Reference Basket 113.87 117.72 108.55 101.90 95.32 93.62 89.73 79.68 81.62 81.88 78.45 84.13 75.82 74.93 76.98 80.60 81.02 84.58

Table 2: Selected spot crude prices $/b

2022 2023 Weeks 26–30/2023 (week ending)
Crude/country Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul 30 Jun 07 Jul 14 Jul 21 Jul 28 Jul

Arab Heavy — Saudi Arabia 107.84 101.95 96.89 93.12 88.58 78.51 79.56 79.89 76.71 84.09 76.27 75.03 81.24 75.11 76.94 80.72 81.35 84.85

Brega — Libya 114.53 101.52 90.52 93.81 91.50 77.93 81.41 81.65 77.44 83.75 74.77 73.58 78.94 72.53 75.30 78.66 78.52 82.15

Brent Dtd — North Sea 112.63 99.62 89.82 93.11 91.10 80.38 82.86 82.50 78.29 84.90 75.82 74.73 80.09 73.68 76.45 79.81 79.67 83.30

Dubai — UAE 102.87 96.33 90.98 91.04 86.12 77.09 80.75 82.05 78.42 83.40 75.13 74.70 80.33 74.86 76.00 79.81 80.50 83.94

Ekofisk — North Sea 120.37 105.29 93.02 96.02 94.32 83.22 85.67 85.67 80.40 87.31 77.49 76.21 81.83 75.03 77.90 81.59 81.52 85.15

Iran Light — IR Iran 106.76 92.07 82.45 86.95 85.71 73.42 76.79 78.68 75.64 82.75 74.19 73.46 80.75 72.80 76.33 80.79 80.50 84.18

Isthmus — Mexico 100.47 89.09 81.44 83.57 79.26 67.48 68.82 68.27 65.13 72.61 65.78 66.31 72.56 65.52 68.72 72.19 72.24 75.98

Oman — Oman 103.22 96.97 90.80 90.80 86.15 77.43 80.87 82.23 78.49 83.28 74.91 74.65 80.54 74.65 76.27 80.02 80.60 84.16

Suez Mix — Egypt 106.63 91.94 82.32 86.82 85.58 73.29 76.66 78.55 75.51 82.62 74.06 73.33 80.62 72.67 76.20 80.66 80.37 84.05

Minas — Indonesia 103.01 95.39 88.91 91.06 89.21 79.14 81.57 81.53 77.10 81.36 73.72 72.58 77.47 71.52 73.63 77.29 77.21 80.67

Urals — Russia 85.32 77.34 68.63 70.54 67.98 52.23 52.21 51.91 49.74 59.97 55.22 56.64 65.12 56.84 59.89 63.88 64.97 70.22

WTI — North America 100.25 91.57 84.00 87.26 84.15 76.50 78.19 76.81 73.37 79.44 71.64 70.31 75.85 69.43 71.75 75.18 75.61 79.66
OPEC bulletin 7–8/23

Notes:
Brent for dated cargoes; Urals cif Mediterranean. All others fob loading port.
Sources: Argus; Secretariat’s assessments.

133
Market Review
Graph 1: Evolution of the OPEC Reference Basket spot crude prices, 2023 $/b

90

85

80

75

70

65

60

55
Arab Light Es Sider Merey
Basrah Medium Girassol Murban
50 Bonni Light Iran Heavy Rabi Light Zafiro
Djeno Kuwait Export Saharan Blend OPEC Reference
Basket
45
5 May 12 19 26 2 June 9 16 23 30 7 July 14 21 28
Wk 18 19 20 21 22 23 24 25 26 27 28 29 30

Graph 2: Evolution of selected spot crude prices, 2023 $/b

90

85

80

75

70

65

60

55

Arab Heavy Ekofisk Oman Brega

50 Iran Light Suez Mix Brent Urals
OPEC bulletin 7–8/23

Isthmus Dubai Minas WTI

OPEC Reference Basket
45
5 May 12 19 26 2 June 9 16 23 30 7 July 14 21 28
Wk 18 19 20 21 22 23 24 25 26 27 28 29 30

134
Table and Graph 3: North European market — spot barges, fob Rotterdam $/b
regular fuel oil fuel oil
gasoline diesel 1 per 3.5 per naphtha jet kero fuel oil 1%S
naphtha unleaded ultra light jet kero cent S cent S regular unleaded diesel fuel oil 3.5%S
170
2022 July 84.65 158.02 147.64 153.29 89.26 70.77
August 72.98 137.45 143.04 143.00 90.31 75.00
150
September 69.03 124.73 135.02 139.42 82.58 62.10
October 74.30 137.02 139.35 162.90 82.06 59.29
130
November 73.87 127.89 132.26 134.93 74.32 60.78
December 65.57 110.33 121.12 120.72 64.77 55.92
110
January 76.21 123.20 129.05 124.90 68.38 59.39
February 79.41 122.15 112.55 110.03 72.28 59.68
90
2023 March 74.61 120.69 103.94 107.12 65.94 59.66
April 74.88 129.47 100.51 101.11 72.58 69.21
70
May 64.70 122.85 91.46 91.64 67.86 62.98
June 60.68 123.91 94.49 96.47 69.94 68.60
50
July 63.22 131.12 106.27 105.39 75.02 72.49 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2022 2023

Table and Graph 4: South European market — spot cargoes, fob Italy $/b
premium
gasoline diesel fuel oil fuel oil prem 50ppm fuel oil 1.0%S
naphtha 50ppm ultra light 1 per cent S 3.5 per cent S naphtha diesel fuel oil 3.5%S
160
2022 July 82.14 141.78 145.03 95.58 70.58
August 70.39 114.86 135.92 96.88 71.03 140
September 67.00 101.21 134.05 89.44 51.18
120
October 71.14 111.60 151.41 89.45 56.62
November 70.34 115.35 133.06 80.64 57.73 100
December 60.68 93.46 116.22 71.36 52.97
80
January 73.95 102.57 126.21 74.50 54.67
February 76.70 102.34 110.96 76.71 55.16 60
2023 March 70.23 104.28 107.97 70.91 58.18
40
April 71.54 107.49 102.24 77.13 67.38
May 63.28 95.96 92.25 72.46 62.35 20
Graph 5 US East Coast Market
June 59.28 99.62 96.83 74.14 63.22
0
July 61.32 107.81 106.23 78.65 73.28
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2022 2023

Table and Graph 5: US East Coast market — spot cargoes, New York $/b, duties and fees included
regular gasoil* fuel oil 0.3%S LP
gasoline fuel oil fuel oil jet kero* reg unl 87 fuel oil 3.0%S
unleaded 87 gasoil* jet kero* 0.3 per cent S 3.0 per cent S 190
2022 July 145.90 154.69 153.38 144.45 91.34
August 124.36 151.06 146.74 130.55 87.69 170
September 110.22 143.93 147.65 121.67 68.18
October 132.91 182.33 179.98 122.15 65.00 150

November 120.38 172.17 157.91 115.52 67.01

130
December 97.78 130.99 129.90 103.45 60.24
January 109.67 136.95 186.70 106.68 61.47
110
February 106.11 118.74 156.57 107.83 62.51
2023 March 106.26 115.37 125.55 101.52 62.71 90
April 111.95 108.59 107.56 97.31 66.55
May 107.12 98.56 94.23 92.24 63.65 70
June 107.61 101.91 98.95 87.60 68.69
July 115.04 112.69 107.77 92.54 75.62 50
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
* FOB barge spot prices. 2022 2023

Source: Argus. Prices are average of available days.

135
 Graph 7 Middle East Gulf Market
Market Review
Table and Graph 6: Singapore market — spot cargoes, fob $/b
premium premium
gasoline gasoline fuel oil fuel oil jet kero prem unl 95 gasoil (high sulphur)
naphtha unl 95 unl 92 gasoil jet kero 180 Cst 380 Cst naphtha prem unl 92 gasoil (low sulphur) fuel oil 380 Cst
150
2022 July 82.70 121.56 116.35 136.82 136.22 134.90 72.69
August 72.64 110.57 107.25 134.09 133.62 132.39 73.78 130
September 68.09 97.45 93.79 124.87 124.55 120.92 59.20 naphtha gasoil jet kero fuel oil 180 Cst
190
October 71.86 94.78 91.16 134.61 133.96 123.40 56.57 110
180
November 74.22 98.27 93.11 125.91 125.41 121.01 60.78 170
90
December 66.41 89.40 85.36 112.41 110.54 110.54 55.56 160
January 72.52 98.83 95.49 113.98 111.94 115.07 57.98 150
70
140
February 76.98 99.36 95.86 103.71 101.05 106.77 61.18
130
2023 March 73.19 98.59 94.25 98.85 95.33 98.86 64.39 50
120
April 71.54 100.14 96.52 96.91 92.91 96.78 71.74 110
30
May 62.25 90.29 85.69 88.51 86.37 88.59 65.98 100
June 57.01 92.30 87.43 91.52 90.45 90.06 65.25 90
10
80
July 62.43 98.60 93.13 101.02 99.55 98.85 73.39
70Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
602022 2023
50
40
Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
Table and Graph 7: Middle East Gulf market — spot cargoes, fob 2022 2023 $/b

fuel oil
naphtha gasoil jet kero 180 Cst naphtha gasoil jet kero fuel oil 180 Cst
150
2022 July 79.01 130.25 129.49 70.09
August 69.59 128.58 127.26 70.31 130
September 64.83 120.62 115.16 55.41
October 70.20 128.57 119.73 53.12 110
November 70.93 117.34 116.48 56.07
December 60.88 103.25 103.86 49.80 90

January 68.47 108.38 110.11 52.57

70
February 73.67 101.25 102.71 57.12
2023 March 68.19 96.07 94.37 59.94
50
April 67.91 90.53 92.00 67.28
May 60.05 81.31 84.52 62.44 30
June 55.11 85.50 86.61 61.67
July 60.85 95.82 95.87 70.51 10
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Source: Argus. Prices are average of available days. 2022 2023
OPEC bulletin 7–8/23

136
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