oil & gas > listening post

24 > QATAR TODAY >MAY 2015

OPECS
STRATEGY IS
TO MAINTAIN
PRODUCTION
LEVELS

HE ABDULLAH BIN
HAMAD AL ATTIYAH
SPEAKS EXCLUSIVELY TO
QATAR TODAY ABOUT OPEC,
OIL PRODUCTION AND
QATARS ENERGY POLICY.
QATAR TODAY > MAY 2015 > 25

oil & gas > listening post

"The media
hasnt always
fully grasped that
OPEC policies and
decisions have to
be seen within the
context of member
states national
interests and
sovereignty."

few weeks before the

Abdullah Bin Hamad
Al
Attiyah
Awards,
HE Abdullah bin Hamad
Al Attiyah, President of
the Qatar Administrative
Control and Transparency Authority,
speaks exclusively to Qatar Today on
the role of OPEC and Iran sanctions
and whether the lifting of sanctions will
affect relations between OPEC countries
and Iran. The Awards were conceived
to celebrate the legacy of HE Al Attiyah
by rewarding individuals for their
achievements in advancing fields of work
and policy that emulate Al Attiyahs 40
years of distinguished contribution to the
global energy industry.
Having played a critical role in the international oil market for more than
50 years, OPEC today is faced with
new competition and an imbalanced

market is OPEC beginning to lose its

relevance?
OPEC remains a force for stability in world
oil markets and intends to play an effective
and positive role serving its member
countries as well as producing countries,
the oil industry and the global economy
at large. In the new energy era of greater
competition and new sources of oil being
made available, OPECs relevance will be
different, however. OPEC will continue to
seek to balance world oil markets and to lead
a fruitful dialogue between producers and
consumers. But, at the same time, OPEC
has learned from history, in particular in
the 1980s, when it sought to provide price
support by cutting production but instead
lost market share and still faced low prices.
OPECs strategy therefore is to maintain
production levels and market share.
With sanctions on Iran likely to be lifted later this year, are there any concerns that rising Iranian output may
lead to rising internal dissent within
OPEC?
Since the beginning of OPEC, there have
always been some differences in opinion,
but that is understandable, natural and,
more importantly, healthy. When Iraq
came back online and production reached
3.6 million barrels per day, which was said
to be its historical level, everyone claimed
that the oil price would go down and there
would be discontent in OPEC. That did not
happen, Iraq consumed its own oil, and the
market remained stable for everybody.
As for Iran, first of all, it wont be able to
boost production immediately and when it
does, growing energy demand in Asia and
other developing nations is expected to
absorb the additional barrels.
What future policies should Qatars
energy industry pursue to remain competitive in the current changing market
environment?
Qatar is committed to its National Vision
2030, which aims at creating a balance
between an oil-based and a knowledgebased economy, and therefore seeks to
build a sustainable economy for future
generations. Qatars energy sector will play
a critical role in supporting the National
Vision by ensuring the responsible and
sustainable exploitation of our hydrocarbon
resources, and diversifying into other
forms of energy such as renewables. As

26 > QATAR TODAY >MAY 2015

a responsible citizen of the world, this

is something we are fully committed to.
At the same time, we need to see the oil
and gas sector step up its contributions
in advanced technological innovations
and the development of human resources
in Qatar.
Will Asia remain Qatars main gas export market going forward or should
the country look at other markets as
global competition intensifies?
Asia and Qatar have long enjoyed a
progressive and mutually beneficial
relationship, and this isnt going to change.
With long-term energy demand in Asia set
to rise, Qatar is well positioned to supply
existing and new customers in the region
going forward. That said, Qatar is always on
the lookout for new opportunities, which
it will evaluate if and when they come up.
Qatar certainly has the scope and flexibility
to expand its footprint to other parts of the
world if it makes economic sense.
Qatar will continue to employ a flexible
marketing position for its customers, but as
a supplier will also keep in mind its limited
gas reserves and the sale price will be
set accordingly.
Would you say that Western media have
accurately interpreted and portrayed
OPECs oil policies now and in the past?
By and large, Western media have been
very capable of reporting on OPEC policies.
However, the one thing I would say is that
the media hasnt always fully grasped that
OPEC policies and decisions have to be
seen within the context of member states
national interests and sovereignty. This
sits at the core of OPEC. OPECs current
decision not to cut production, for example,
isnt because OPEC countries have an
ulterior motive, but because it is unwilling
to act as the worlds sole swing producer.
Is there a gap between media and OPEC
interaction and, if so, whats the best
way of overcoming it?
The gap between OPEC and the media can
be overcome firstly by training the media
present in the OPEC countries. HE Ali
Naimi suggested special training workshops
to help educate industry journalists to
portray a straightforward picture of the
oil market. Initiatives like this are very
important. Secondly, media should try and
understand that there is no grand design

behind OPEC; the organization looks to

interact with the journalists like all other
energy producers. A more open dialogue
should be encouraged from both sides, and
more transparent reporting will help get
the correct oil picture across.
Energy producers need to know what
demand forecasts will be in order to be
confident to invest, while consumers
need to know that adequate supply is
coming. With this in mind, what is the
importance of the producer-consumer
dialogue?
The dialogue is very important producers
need to know what demand forecasts
will be in order to confidently invest,
and consumers need to know if there is
adequate supply and this balance is hard to
achieve when dialogue is ineffective. At the
moment, the market is out of balance, and
as prices are falling and eroding investment,
this means prices can spike again in the
near future. Current market conditions
have impressed the importance of dialogue
even further. Market imbalance is largely
due to a speculative market that has relied
on emotions rather than facts. Investment
will come through only if the investors are
aware hence the importance of training
media and creating an open dialogue.

A LIFETIME OF ACHIEVEMENT
In 1992, Al Attiyah was appointed Minister
of Energy & Industry and Chairman and
Managing Director of Qatar Petroleum,
before being entrusted with the additional
responsibility of Second Deputy Prime
Minister in 2003. Four years later, he was
elevated to Deputy Prime Minister, and
in 2011 was appointed Chief of the Amiri
Diwan.
Al Attiyah has also served as Chairman
of Qatars Planning Commission, and was
elected as Chairman of the United Nations
Commission on Sustainable Development
in 2006.
He has been recognised for his role in the
Advancement of the Qatar Energy
Industry
Advancement of Organization of
Petroleum Exporting Countries
Advancement of Education for Future
Energy Leaders
Advancement of Producer-Consumer
Dialogue
Advancement of International Energy
Journalism

How can cooperation among countries

along the South-South Corridor help
create a successful platform for knowledge exchange among new talent in the
energy industry?
Countries located along todays New Silk
Road share many common goals and values.
They all seek to build diversified, sustainable
economies and to ensure the well-being
and the creation of opportunities for their
mostly young and growing populations.
Todays young generation has a vital role
to play in ensuring the sustainability of
the energy industry in the future, even
more so as a global talent shortage in the
sector is increasing in the face of nearly half
the worlds experienced engineers set to
retire in the coming years. This provides a
significant opportunity for countries along
the New Silk Road to deepen collaboration
and knowledge exchange in the energy
sector, including in areas such as renewable
energies and energy efficiency, in order to
develop a new generation of energy experts.
Gulf countries, as major energy producers,
have an important role to play in this
QATAR TODAY > MAY 2015 > 27