We Have Overcome Hardships
We have been able to match up to other members in terms of oil industry
representative to board of governors of the Organization of Petroleum
Exporting Countries (OPEC) announced that Iran and Venezuela have succeeded in
cooperation with other member states to overcome the existing hardships.
Venezuelan governor in OPEC, who was addressing a ceremony marking the 50th
anniversary of the Organization in Tehran, added that he was honored to have
been invited by Iranian officials to take part in the ceremony.
Venezuelan official stated that the first meeting of OPEC was held in 1949 in
and Venezuela were present as two major oil producing countries from the
Middle East and
members decided to establish this organization in order to defend their common
interests. Venezuela takes advantage of the most advanced technologies in
exploiting its oil reserves and the Venezuelan oil industry has caused
profound changes in the country. Following the World War II, the Middle East
has turned into a major hub of oil production in the world. Low cost of oil
production, low taxes as well as inexpensive labor force are major causes of
those changes,” he added.
Venezuelan oil official stated that oil production in the
became very important in 1959 as production in Venezuela gradually fell
because it would not have been to Venezuela’s benefit to lower salaries of
workers in the oil sector.
“Therefore, a goodwill board was established in 1951 to formulate the first
convention of OPEC. The board included representatives from Iran, Venezuela
and Saudi Arabia which studied various aspects of oil production in Venezuela
and the Middle East. When the first meeting of oil exporting Arab countries
was held in Cairo, Iran and Venezuela were there as observers. Throughout the
history of OPEC we have been facing problems, but we have managed to overcome
those problems in cooperation with other members. We have had good
achievements in the 1960s,” he said.
Venezuelan OPEC governor stated that the Organization succeeded in preventing
oil price fall in the 1960s. “The Organization finally managed by unifying
strategies of member states to coordinate members and increase oil prices, so
as to help member states expand their reserves.”
“Global oil prices were shocked in the 1970s due to wide fluctuations. In the
early 1990s, we managed to stabilize the output and this was a great
achievement as it enabled us to formulate new regulations and fight the
opposite forces. OPEC’s structure gradually became more complicated and more
producing countries entered global oil markets. Venezuela finally managed to
attune its state oil company with those of other member states. Now under the
leadership of Hugo Chavez, we have been able to match up to other members in
terms of oil industry advances,” he concluded.