About the OPEC
It is a permanent, intergovernmental Organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. OPEC's objective is to coordinate, promote and unify petroleum policies among Members, to stabilise and ensure fairer prices for producers, and efficient consumption and investment returns for consumers, making it a two-way cycle. OPEC nations produce about 30% of the world's crude oil.
OPEC+
In 2016, dominantly in response to falling oil prices driven by significant increases in U.S. shale oil output, OPEC signed an agreement with 10 other oil-producing countries to create a body, OPEC+ which includes the 13 OPEC members along with Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan. They produce about 40% of the world's crude oil.
The 6th OPEC-India Energy Dialogue
The 6th High-Level Meeting of the OPEC-India Energy Dialogue was convened on 9 November 2023, at the OPEC Secretariat in Vienna, Austria. The Meeting was co-chaired by Haitham Al Ghais, Secretary General of OPEC, and Hardeep Singh Puri, Minister of Petroleum and Natural Gas and Minister of Housing and Urban Affairs of India. The Meeting highlighted key issues related to oil and energy supply chains with a special focus on availability, affordability and sustainability, which ensure the balance of energy markets. The two sides noted the World Oil Outlook 2023, which forecasted India as the fastest-growing major developing economy, anticipating over 28% of incremental global energy demand till 2045.
OPEC-India relations and prospects
Since 2000, trade between India and OPEC Members has grown exponentially. During the deliberations, it was highlighted that, as the third-largest energy consumer, crude oil importer and fourth-largest global refiner, close ties between India and OPEC not only signal an essential move but promising prospects for both. By treading a path of stable and powerful economic levelling, and promoting greater collaboration for mutual benefit of both parties, this potential partnership will contribute significantly to the long-term stability of global oil markets.
Way forward
India-OPEC relationship will be pivotal in the years to come, as the world seeks to foster global energy security and ensure energy affordability by reducing emissions. The dialogue is rather unique given India’s expanding oil and gas industry, which is not only fuelling the economy but also attracting investors and oil producers from near and far. It is also fanning the development of some of the leading joint projects undertaken by OPEC’s Member Countries, who recognize India’s significant growth potential.
India is also expecting major growth in the transportation sector, as well as expansion in exports of several goods and services. It has an extremely renowned IT sector, as well as a promising services sector and an efficient manufacturing base. India’s role in designing global marketplace strategies and its growing involvement in international trading networks are signposts for
Questions to ponder upon
How does a growing efficiency among OPEC member countries ensure a safe future for energy in India?
Focusing on domestic energy policies, what can be the way forward when it comes to self-dependence and security in terms of fuel and energy for us?