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The International Energy Forum Secretariat
(IEFS) was inaugurated on November 19, 2005 in Riyadh at a
ceremony attended by King Abdullah. The IEFS is the result
of then Crown Prince Abdullah's effort to improve the dialogue
between oil producing and consuming countries. The
ceremonies included the launch of the Joint Oil Data Initiative
database, providing oil and gas information from about 90
countries. This SUSRIS Item of Interest provides
the text of King Abdullah's remarks at the inauguration as well as
an article by M. Ghazanfar Ali Khan of Arab
News, detailing the day's events and background on the IEF.
Address by Custodian of the Two Holy Mosques
King Abdullah bin Abdulaziz at the opening of the International
Energy Forum Secretariat headquarters in Riyadh November 19, 2005
In the Name of Allah, Most Compassionate, Most
Merciful
Praise be to God, and peace and blessings upon
his messenger Mohammed and all his kin and companions.
Dear Friends: May Gods peace and blessings be
upon you. It is our pleasure to welcome you to the Kingdom of
Saudi Arabia, and to celebrate with you the inauguration of the
headquarters for the International Energy Forum Secretariat, and
the launch of the international project of the Joint Oil Data
Initiative. It is our hope that the work of the Secretariat will
contribute effectively to enhancing the dialogue between producers
and consumers, and protect the global economy from turmoil. This
is the reason why we proposed the establishment of the Secretariat
five years ago.
Dear Friends: Our oil policy is clear, and is
characterized by honesty and transparency. It is based on our firm
belief that we are part of the world we live in, and that we share
our world�s fortunes as well as misfortunes, and that our
national interest does not conflict with the interests of the
international community. This policy is based on two main
objectives: the first is to realize a fair and reasonable price
for oil, and the second is to provide adequate oil supplies to all
consumers.
In order to realize these two objectives, we
have increased our production capacity to a level that does not
jeopardize the interests of future generations or do damage to the
oil fields. We have adopted moderate positions, within and outside
of OPEC, with regard to production and pricing. We have increased
production whenever there were shortfalls in supply, and we have
adopted a policy of consultation and coordination with both
consumers and producers. However, all the efforts exerted by
producing countries are fruitful only when they are met with a
positive attitude by the major consuming countries, in the form of
limiting speculation in the oil markets and refuting rumors and
misleading information which cloud the realities of the market. It
is also incumbent upon these nations to reduce the burdens on
their citizens by reducing taxes on petroleum products when oil
prices rise.
Dear Friends: Our oil policy is part and parcel
of our overall policy which seeks dialogue rather than argument,
and cooperation rather than confrontation.
We ask God Almighty to grant success to all who
labor for the benefit of humanity, for He is the all hearer, the
all responsive. God�s peace and blessings be upon you.
Cut Energy Taxes, Says
Abdullah
M. Ghazanfar Ali Khan, Arab News
RIYADH, 20 November 2005 � Custodian of the
Two Holy Mosques King Abdullah yesterday called upon oil consuming
nations to cut energy taxes to bring down soaring prices. He said
Saudi Arabia would continue its efforts to stabilize world oil
market by ensuring adequate supplies.
�The oil policy of Saudi Arabia is based on
two main factors: Achieving a reasonable and fair price for oil;
and ensuring enough supplies to all the consumers,� said King
Abdullah while opening the headquarters of the International
Energy Forum here.
�But all the efforts of the producing
countries will not bear fruit if they are not met with positive
steps by the main consumer states,� he said. �These states
should alleviate the ordeal of their citizens by cutting taxes on
petroleum products when prices increase.�
The king also launched the new oil database,
prepared by the Joint Oil Data Initiative (JODI), during the
ceremony attended by oil ministers of several producing and
consuming countries. He emphasized the Kingdom�s readiness to
increase oil supplies �without affecting the rights of our
future generations and oilfields.�
OPEC chief and Kuwaiti Energy Minister Sheikh
Ahmad Fahd Al-Sabah supported King Abdullah�s call and said the
Organization of Petroleum Exporting Countries would seek tax cuts
in consumer countries.
�This is a financial issue of their own, but
everyone should know that in Europe, 80 percent of the price (of
oil) is made up of taxes,� he told reporters. �They ask for an
increase in production, and we ask for a cut in taxes ... which
are one of the reasons for the hike in prices,� he said.
The OPEC chief expected oil prices to rise
again with the advent of a harsh winter in the Northern
Hemisphere. �If the winter is very cold and long, undoubtedly
the prices will again go up,� he said.
The forum was the first major gathering for
world�s energy consumers and producers after oil prices hit a
historic high of $70.82 a barrel on Aug. 30, before retreating to
around $57 at present. �The worst scenario now is that this
(price) ceiling of $70 is the highest ceiling� that prices would
not cross, he said.
In his address, Petroleum and Mineral Resources
Minister Ali Al-Naimi said the establishment of the SR16.5 million
IEF secretariat would institutionalize dialogue between producers
and consumers.
Later speaking to reporters, Naimi said Riyadh
was spending $50 billion to raise output capacity but wants a
clearer picture of where the extra production is needed.
Producers are seeking �a road map for demand
in consuming nations,� Naimi said. �As producers, we do not
want to build the facilities which will not be met by demand.�
The oil minister, however, said Saudi Arabia�s
expansion plans, which aim to increase output capacity to 12.5
million barrels per day by 2009, would not be made conditional on
a guarantee of demand.
Qatari Energy Minister Abdullah Al-Attiyah said
the energy market would see increased oil supplies in the second
quarter of 2006, possibly pushing down world prices. �There will
be more oil floating and this might be a concern, we have to deal
with it very carefully,� Attiyah told reporters.
The daylong closed session forum, meant to
smooth out the volatility of the market and ensure stable prices,
was attended by energy and economy ministers of the United States,
France, Britain, Germany, Mexico, Iraq, Iran and the United Arab
Emirates.
Established in 1991, the IEF serves as a
vehicle for dialogue between oil and gas producers and consumers
on vital issues like energy prices, security and supplies as well
as technological and environmental issues.
US Energy Secretary Samuel Bodman, who is
currently on a visit to Riyadh as part of a four-nation tour of
the Gulf region, said on Friday it would take oil producers at
least two years to provide enough oil that would ease concerns in
the market.
Britain�s Finance Minister Gordon Brown said
yesterday a database of world oil producers and consumers launched
in Riyadh will help bring stability to the world economy.
French Finance Minister Thierry Breton said he
and Brown had come to Saudi Arabia with a message from the G-7
industrialized nations for oil producing states to increase
investment in production and refining to help curb high oil prices
which he said had hurt the global economy.
Ambassador Arne Walther, IEF secretary-general,
thanked Saudi Arabia and its Oil Minister Naimi for providing so
much political and financial support to the forum�s activity and
bearing the total cost of the building.
He said: �The opening of the IEF secretariat
testifies to the importance and potential of the producer-consumer
dialogue at the IEF at a time when oil prices and energy security
are a major global concern�.
He said that �the inauguration of the IEF
secretariat by King Abdullah, with its meeting with ministers of
key countries and industry executives, enhances the importance of
the IEF, and Riyadh, as a focal point for global dialogue across
traditional political, economic and energy policy dividing lines
between nations�. Addressing a press conference Friday night,
Walther called on the ministers to contribute to the budget of IEF�s
secretariat.
Source: Arab
News
[Reprinted with permission]
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