The market power of OPEC – and its limitations
Which are the long term objectives OPEC wants to achieve?
Date: Wednesday March 4
Time: 1.30 pm – 4.30 pm
Location: New! Bryggarsalen, Norrtullsgatan 12 N, Stockholm (Map)
The seminar is free of charge and will be held in English
Lately the global oil market has undergone a dramatic shift, with increased supply, particularly in the US, and weak demand growth. As a result, oil prices have been more than halved since last summer.
Many market observers expected OPEC to react in the fall of 2014 in support of oil prices by cutting back production. After all, some of OPEC’s main goals are to ensure stability on oil markets and steady income to producers. But no decision on lower production was taken. While some OPEC nations meet severe budget problems, Saudi Arabia and a majority of the members seem intent on letting the market find a new equilibrium.
At our seminar we will try to answer the question what the leading OPEC nations may want to achieve by this wait-and-see approach. We will examine the changing market dynamics and the consequences they have for OPEC’s power to influence the market. We will discuss the needs and objectives of different OPEC nations, and how those may affect the strategies and the cohesion of the organization. Is there a pain threshold at which OPEC will have to act? We will also look into the question whether OPEC can count on any support from non-OPEC oil exporters to put a floor under prices.
Øystein Noreng, Professor emeritus, Petroleum Economics and Management, BI Norwegian Business School
Noreng has a PhD in political science from University of Paris at Sorbonne, France. He is an internationally well-known researcher and author of several books on petroleum economics and politics and contributes regularly with articles in the press. He has had numerous research, teching and consulting assignments with Norwegian and foreign universities, as well as with governments, international institutions and organizations, including OPEC. In 2012 Prof. Noreng was the recipient of OPEC´s Award for Research.
Stephen George, Chief Economist, KBC Advanced Technologies plc, Walton-on-Thames, Surrey, UK
Stephen has over 25 years of experience in international oil and energy markets. He joined KBC as a technology specialist in 2001 and has been working in the company’s Energy Economics group since 2005. Prior to becoming group Chief Economist in 2013, he was responsible for analysis of the downstream oil industry and non-refinery supply of products including biofuels and NGLs. Stephen holds a BSE in Chemical Engineering from the University of Michigan (US) and an MBA from Kingston University (UK).
Samuel Ciszuk, Senior Advisor, Swedish Energy Agency
Samuel is Energy and Middle East specialist with global media exposure. Previously consultant at KBC Advanced Technologies in London.
The registration for the seminar is now closed. If you wish to make a late registration, please send an email to NOG(at)afconsult.com