2005 - OPEC

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& Energy and Head of its Delegation. The Conference expressed its warmest congratulations to Dr Ibrahim Bahr Alolom on his recent appointment as Minister of Oil of Iraq and paid tribute to the contribution made to the Organization by his predecessor in office, Dr Thamir Ghadhban. The Conference considered the report of the MMSC, and thanked the Members for their untir- ing efforts on OPEC’s behalf, as well as presentations on various subjects. Having reviewed the oil market situation and its immediate prospects, the Conference observed that the market continues to be well supplied, as a result of OPEC’s decision in March 2005 to increase its production ceiling to 27.5 mb/d, and that, consequently, commercial crude and product stocks have continued to build to comfortable levels, around average in terms of days of forward cover. However, the Conference noted that world crude oil prices remain high and volatile as a result of concern about a lack of effective global oil refining capacity, in particular possible shortages of middle distillates in key consuming regions. Refineries, whilst already running at high utilisation rates, are facing difficulties in coping with strong distillate demand growth. The situation is being further exacerbated by geopolitical developments and increased speculation in the oil futures markets. In the light of the expectation of strong global oil demand during the remainder of the year, in particular in the fourth quarter 2005, and with the resumption of price increases, the Conference decided to raise the current OPEC production ceiling by 500,000 b/d, to 28 mb/d, with effect from 1 July 2005. The Conference further authorised its President, after consultations with Heads of Delegation, to announce an additional 500,000 b/d increase in the ceiling, until its next Meeting, should oil prices remain at current levels or continue to rise further. In taking this decision, the Conference re-affirmed the Organization’s commitment to market stability, a commitment clearly expressed in MCs’ repeated raising of output levels and the acceleration of their production capacity expansion plans aimed at meeting growth in global demand for crude and at maintaining adequate spare capacity. In this vein, the Conference called on all parties concerned to join efforts to maintain market stability, with reasonable prices consistent with robust economic growth, in particular in the emerging economies of the developing world, as well as steady revenue streams, for producing countries and the industry, conducive to the expansion of upstream and downstream capacity to meet rising international demand for oil and products. The Conference emphasised its particular concern about the shortage of effective refining capacity required to meet future strong demand growth, as a consequence of under-investment in this sector, especially in conversion capacity, as well as excessive regulation. The Conference, 5
therefore, repeated its call on industry and consumer governments to urgently address this challenge which, if left unresolved, will exacerbate oil price volatility. The Conference agreed to continue to closely monitor market developments and to take appropriate and prompt action, as and when the need arises. Further to the decision taken by the Conference in March 2005 to change the composition of the ORB to a composition of 11 crude streams representing the main export crudes of all MCs, weighted according to production and exports to the main markets, and after reviewing the Secretariat’s report on its trial calculation, the Conference decided that this new ORB should be introduced with immediate effect, replacing the current ORB. The Conference welcomed the launch and positive outcome of the EU-OPEC Energy Dia- logue, held on 9 June 2005 in Brussels, and recorded its commitment to continuation of this and other regional and international dialogues. In this respect, the Organization looks Rafael Ramírez, Minister of Energy & Mines, Venezuela, talking with Sheikh Ahmad Fahad Al-Ahmad Al-Sabah, Minister of Energy of Kuwait and President of the OPEC Conference at the 136th (Extraordinary) Meeting of the OPEC Conference. 5
Page 4 and 5:
Organization of the Petroleum Expor
Page 6 and 7:
Foreword There are many words that
Page 8 and 9: As an industry we have to be inclus
Page 10 and 11: OPEC in the World Economy In 2005,
Page 12 and 13: significantly supported by savings
Page 14 and 15: The largest country in the region,
Page 16 and 17: $510.5 billion in revenues, compare
Page 18 and 19: Oil Market Developments OPEC produc
Page 20 and 21: Figure 1: Year-on-year percentage c
Page 22 and 23: Figure 3: OPEC 1 and non-OPEC 2 mar
Page 24 and 25: OECD OECD countries, which account
Page 26 and 27: Table 6 Summarised supply/demand ba
Page 28 and 29: Figure 4: Monthly movement of crude
Page 30 and 31: demand growth forecast for 2005 and
Page 32 and 33: closing at $57.82/b. The downward p
Page 34 and 35: Looking ahead, initiatives from OPE
Page 36 and 37: The freight rates of VLCCs on the M
Page 38 and 39: EU-OPEC Energy Dialogue In line wit
Page 40 and 41: million barrels a day for a period
Page 42 and 43: Russia-OPEC Energy Dialogue Russia,
Page 44 and 45: China-OPEC Energy Dialogue The birt
Page 46 and 47: OPEC Acting Secretary General expre
Page 48 and 49: Dr Edmund M Daukoru, Presidential A
Page 50 and 51: is fully met, and global crude oil
Page 52 and 53: particular the fourth quarter 2005,
Page 54 and 55: in the Middle East and North Africa
Page 56 and 57: increased activity in the oil futur
Page 60 and 61: forward to hosting the next EU-OPEC
Page 62 and 63: OPEC President sends US Energy Secr
Page 64 and 65: what additional measures could be t
Page 66 and 67: implementing costly investment plan
Page 68 and 69: tion remaining committed to so enha
Page 70 and 71: panding the role of oil in meeting
Page 72 and 73: Brussels on 9 June, including the f
Page 74 and 75: The Conference considered the repor
Page 76 and 77: Al-Ahmed Al-Jaber Al-Sabah, Prime M
Page 78 and 79: Activities of the Secretariat Offic
Page 80 and 81: stocks at comfortable levels, and h
Page 82 and 83: oil in meeting future global energy
Page 84 and 85: In addition to the close monitoring
Page 86 and 87: through regular dissemination of el
Page 88 and 89: support from the RD, also updated a
Page 90 and 91: 2005 were stored in the OPEC archiv
Page 92 and 93: ALGERIA Dr Chakib Khelil Minister o
Page 94 and 95: Members of the Board of Governors M
Page 96 and 97: National Representatives to the ECB
Page 98 and 99: Diary of the President/Secretary Ge
Page 100 and 101: 100 Calendar January 14 OPEC-United
Page 102 and 103: June 14 Meeting of the OPEC Legal D
Page 104 and 105: November 28- COP-11-Meeting of the
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2005 - OPEC

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