Ahead of the 174th (Ordinary) Opec meeting on Friday, Suhail Mohammad Faraj Al Mazroui, UAE Minister of Energy and Industry, released the following statement
We are fast approaching the midway point of an important year for Opec and its partners. And with it, comes not only our June meeting — the first full gathering of the year at which we will review the noteworthy progress that we are making, but also the 7th Opec International Seminar, a unique assembly of ministers, the heads of intergovernmental organisations, chief executives of national and international oil companies, industry leaders, academics, energy experts and media.
As President of the Opec Conference for 2018, I am honoured to preside over both events. The year so far …
It has been a constructive first half of the year. Working closely with the Opec secretary general and his team, I was pleased to participate in numerous seminars, events and meetings to further strengthen Opec’s engagement and rapport with organisations such as the IEA and IEF, and other industry stakeholders.
From IP week in London, to CERA in Houston, and the IEA International Energy Forum in New Delhi, to name but a few, Opec has engaged in open and transparent dialogue with a broad range of stakeholders — an approach that I wholeheartedly support and that I believe is beneficial to all parties.
Looking ahead, I remain optimistic that we will fulfil our goal of delivering sustainable oil market stability, which is intended to serve the long term interests of producers, consumers and the global economy. Central to this optimism is the unprecedented level of cooperation and conformity from Opec and its partners to the production adjustments that were promised under the ‘declaration of cooperation’. Stock levels have dropped significantly since the beginning of 2017 and the market is moving ever-closer to becoming rebalanced. This will undoubtedly be a key topic of discussion in our June meeting.
During the 174th Opec Meeting (22nd June), we will hear feedback from the Opec technical committee on their view of the fair level of global inventory, one that encourages the critical investment that is needed to deliver future suppliers, while also providing a buffer in case of unexpected supply disruption. We will also receive the latest Opec view of production, demand, and of course inventory levels. Finally, acknowledging concerns expressed by some importing and consuming countries regarding potential shortages in the global oil market, we will discuss and agree our plans for the remainder of 2018, and beyond.
Looking ahead, I am heartened by the very positive relationships and rapport that continues to build between Opec and our partners. This provides an excellent foundation for the future. As I have stated before, the significant progress we have achieved will only be sustained if our cooperation is institutionalised in some way, shape or form. This may well go beyond the short-term and look at some of the broader challenges, as well as opportunities, that our industry faces in the years and decades ahead. Again, I look forward to discussing and debating this further at our June meeting.
The Opec Seminar
The Opec International Seminar is considered to be one of the premier events on the world energy calendar. It brings together producers and consumers, resource holders and energy companies, to discuss, debate and deliberate key industry issues.
This year’s Seminar, held under the theme ‘Petroleum — cooperation for a sustainable future’, will build on Opec’s long-standing commitment to strive for a secure and stable international oil market by promoting cooperation and dialogue with stakeholders from around the world.
All major forecasters show that oil will remain a fuel of choice for the foreseeable future. In fact, in Opec’s World oil Outlook 2017, oil and gas still make up 52 per cent of the global energy mix in 2040. With this in mind, the Seminar offers an opportunity for experts from around the globe to engage on important topics that support the sustainability of our industry, for example, recognising the importance of the ‘Paris Agreement’, technologies that reduce and ultimately eliminate greenhouse gas emissions and opportunities to lighten the environmental footprint of oil.
Delegations from both Adnoc and Mubadala will join the UAE Ministry of Energy and Industry at the Seminar, which runs from the 20-21 June at the Hofburg Palace, in Vienna, Austria.