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Post an EU jobAn OPEC delegation promised the EU sufficient oil supplies and prices ranging between 35 and 55 dollars a barrel during the first-ever EU-OPEC Energy Dialogue.
The EU and the Organisation of Petroleum Exporting Countries (OPEC) held a historic first Energy Dialogue meeting on 9 June. Representatives of both organisations discussed the stability, transparency and predictability of the international oil market.
The EU currently imports around 40% of its oil from OPEC countries. It is concerned about high oil prices and long-term security of supply. In its 2000 Green Paper
, the EU predicted that, by 2030, up to 70% of the Union's energy requirements and 90% of oil will have to be covered by imports.
The high oil prices on the world market are the result of several factors:
theory). Current crude oil prices are around 54 dollars a barrel but this is still way lower than in the 80s when inflation is taken into consideration.
LinksDossier: Geopolitics of EU energy supply
Interview: Interview with Andris Piebalgs
The first Energy Dialogue aimed to enhance cooperation between OPEC and the EU "in the interest of producers and consumers". Discussions focused on oil prices, greater data transparency and investment needs, especially for refineries. According to an EU official, the UK minister also addressed the link between energy policies and climate change.
A practical follow-up programme was defined with:
The leader of the OPEC delegation, Sheikh Ahmed denied that there were any supply problems in the market. The high prices are based on "misinformation" and are more related to geopolitics, environment, weather and speculation in the market, according to the OPEC minister.
Luxembourg Economy Minister Jeannot Krecké said that the meeting went "beyond his expectations" and insisted on the need for more investment in refineries capacity.
UK Energy Minister Wicks reiterated that EU energy and climate change will be high priorities for the upcoming UK Presidency.
Dr Daukoru, presidential advisor in energy for Nigeria and the next OPEC conference president, said that OPEC is considering an ideal price range between 35 and 55 dollars per barrel. Two years ago, OPEC adopted a price band between 22-28 dollars. He did not expect a decision on this issue during the OPEC oil ministers meeting next week.
In its recent World Economic Outlook, the IMF urged OPEC to become more transparent on its oil reserves and have them properly audited.
The International Monetary Fund (IMF) recommendation is in line with recent statements by Matthew Simmons, a former energy advisor to President Bush and chairman of energy investment bank Simmons & CO. In his book "Twilight in the desert: the coming Saudi oil shock and the world economy" (to be published soon), Mr Simmons called on Saudi Arabia to have an independent auditor verify the country's reserves figures.
(in: World Economic Outlook, April 2005)
(March 2005)
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