Describe the Strengths, Weaknesses, Opportunities, and Threats for OPEC. Prepare your response as a summary and include data uncovered from reading
the textbook, articles, and personal experience.
OPEC’s Barkindo stresses importance of oil market stability and investment (Chapter 9)
Jan. 27, 2021 By Myra P. Saefong
The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, will continue to assess the oil market on a month to month
basis and take necessary action to ensure stability in the market, OPEC Secretary General Mohammad Barkindo said on Wednesday. “We will continue to
take a month by month approach to assessing market conditions and stand ready to take any necessary actions through the Declaration of Cooperation
partners,” he said in prepared remarks to the S&P Global Platts Americas Petroleum and Energy Virtual Conference (Links to an external site.) on Wednesday,
referring to the OPEC+ agreement to curb output. In his remarks, he stressed the importance of making sure that there will be enough energy to meet
demand in the long term.
The world will continue to need more energy in the decades ahead, said Barkindo, pointing out that looking longer term to 2045, the global economy is
expected to more than double in size. “The basic challenge is simple,” he said. “How can we ensure that there is enough energy supply to meet expected
future energy growth, and how can this growth be achieved in a sustainable way — balancing the needs of people in relation to their social welfare, the
economy and the environment?”
It’s “vital that the required investments are made in all energies to ensure stable and continuous supplies and to help reduce and, ultimately, eliminate
emissions,” he said. At the same time, he also emphasized that “we do not deny the existence of climate change,” and the science and statistics say that the
“we need to reduce emissions and use energy more efficiently.” “We do not deny the existence of climate change.” — Mohammad Barkindo, OPEC secretary
general
Renewable energy sources are “coming of age, with wind and solar expanding quickly but even by 2045, are only estimated to make up just over 20% of the
global energy mix,” he said. Oil and natural gas will still supply over 50% of the world’s energy needs by 2045, he added, with oil at around 27% and gas at
25%. On Wednesday (Links to an external site.), prices for both West Texas Intermediate crude CLH21, -0.34% (Links to an external site.), the U.S. benchmark,
and Brent crude BRNH21, -0.43% (Links to an external site.), the global benchmark, stood close to the levels they traded at before the COVID-19 pandemic
wreaked havoc on the global economy.
March WTI crude settled at $52.85 a barrel, up 24 cents, or 0.5%, while March Brent crude edged down by 10 cents, or 0.2%, to $55.81 a barrel. There are no
reputable outlooks projecting that “renewables will come anywhere close to overtaking oil and gas in the decades ahead, said Barkindo. He also welcomed
the Biden administration’s decision to rejoin the Paris climate agreement and said that “the energy transition and the global conversation around it would be
incomplete without the United States at the head of the multilateral table.”
Meanwhile, the global economic recovery has been “fragile and uncertainties remain,” said Barkindo. Renewed lockdowns serve as a “harsh reminder of how
delicate the situation remains. Nonetheless, we are cautious optimistic for the global economic rebound in 2021.” “More broadly, energy market stability will
be vital to the energy transition stability,” he said.
https://www.marketwatch.com/story/opecs-barkindo-stresses-importance-of-oil-market-stability-and-investment-11611771728
OPEC+ Compliance With Oil Production Pact Drops To 99%
By Tsvetana Paraskova (Links to an external site.) – Jan 21, 2021, 5:30 PM CST
The producers part of the OPEC+ alliance complied with the oil output cuts at 99 percent in December 2020, down from 101 percent compliance in
November, sources at the OPEC+ group told Reuters (Links to an external site.) on Thursday.
The technical and ministerial panels of the alliance will meet in early February to discuss compliance and the state of the oil market, and the final number on
OPEC+ compliance for December could slightly change before that, one of the sources in the group told Reuters.
Earlier this month, tanker tracking firm Petro-Logistics estimated that OPEC+ group’s compliance with the oil production cuts fell to 75 percent (Links to an
external site.) in December 2020—one of the lowest levels since the pact was enacted in May 2020
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