OPEC Emphasis on
More Cooperation and Interaction
Mirkazemi, the (former) Iranian minister of petroleum addressed a ceremony
marking the 50th anniversary of the Organization of Petroleum
Exporting Countries in Tehran
noting that the first initiative to establish the organization was taken by
Iran, Venezuela, Iraq and Saudi Arabia in 1949.
that time, international oil majors (called Seven Sisters) set price of oil in
a unilateral process until 1963 when eight more countries joined OPEC. The
organization is currently accounting for 80 percent of the world’s energy
resources and more than 40 percent of international markets and is very
influential in setting market trends," he added.
(former) Iranian oil minister stated that the organization has gone through
many ups and downs since its inception. He added, "Some countries are not
willing for this organization to live and have even claimed that to
stabilize international markets, OPEC should raise output. Meanwhile,
instability stems from taxes that the same countries have levied on oil
products they import."
(former) minister stated that cooperation between producers and consumers is
the main issue which should be taken onboard now. He continued, "Given the
current conditions in international markets, unilateral approaches will not
be beneficial and sovereignty of all producing companies should be
that economic recession since 2007 has been a major challenge facing OPEC as
countries have lost part of their purchasing power for hydrocarbon products.
Mirkazemi mentioned distribution of
international instruments without financial support by Western countries as
a root cause of international crisis, saying, "Secure investment for OPEC
members can be only assured through security of demand which is currently
lacking due to conditions created by Western countries."
stated that if the real oil price was compared to a few years ago, the current
price would seem quite logical.
of 40 years of oil price and comparing it with increased price of production
equipment will prove that purchasing power of producing countries has fallen.
As a result, producing and consuming countries should cooperate and follow
financial policies which will benefit both parties," he added.
(former) minister continued by saying that some oil producing companies have
unfortunately used their surplus revenues to invest in international markets
and have created economic bubbles. When those bubbles are gone, Western
countries will plunder their natural riches.
Mirkazemi stated that other producing
countries save their surplus revenues in dollars. "However, as dollar
depreciates, so does their savings. Fortunately, Iran has reduced dependence
of its oil transactions on dollars."
(former) Iranian minister of petroleum noted that taxes levied by major oil
consuming countries (Group 7) exceed revenues of 12 producing companies and
added that some Western economists maintain that OPEC should increase its
output to help end the economic crisis.
Referring to speculation in international markets, the (former) Iranian
minister of petroleum hoped that international economy will find ways to
protect economic interests of both producers and consumers, so that, oil
producing companies will be able to make their own economic plans.
Mirkazemi said pressure on OPEC members
to reduce oil price without proportionate measures on the part of consumer
countries will not benefit economic stability in international market.