It is our pleasure to welcome you in Doha on the occasion of the Extraordinary Conference of the Ministerial Council of the Organization of Petroleum Exporting Countries (OPEC).

      Almost three decades passed since Doha hosted your 48th Ministerial Conference in December 1976 when the Organization was going through a transitional stage and facing many challenges.

      Today after having surpassed that stage and other hard times due to the solidarity of its members and the justness of its mission, the Organization proved its worthiness and became one of the most important pillars of cooperation and stability in the world oil industry, and an example to be followed in adopting openness and constructive dialogue to overcome obstacles.

      The government and people of the State of Qatar attach special significance to OPEC. Qatar was the first country to apply for OPEC membership, just three months after its founding, to become on January 15,1961 the sixth member along with the other founding members.

      OPEC was founded as a result of the need to protect the owners of a depletable wealth of peoples the majority of whom are developing and aspiring to a better standard of living and who feel responsible towards their future generations to secure their rights in this national resource. Yet the Organization member countries did not ignore the rights and interests of the consuming countries and in particular the poor and developing ones, but committed themselves to securing supplies to these countries at fair and stable prices and worked hard to restrain the steep price increase which usually result from political crises. The Organization was also keen on securing the supplies needed for the market during periods of international turmoil as was the case during the first, second and third Gulf Wars, and also during local unrest as was the case when the Venezuelan oil production was halted.

Honourable Audience,

      Ever since its establishment and passing through difficult circumstances and encountering challenges, the Organization adapted itself with high flexibility to pursue its mission and achieve its objectives.

      Despite the challenges confronted over the last four decades of the organization’s age, we note during the recent years positive developments whether within the Organization or in its relations with the major players in oil markets particularly the big oil exporters from non-OPEC members, world oil companies and the consuming countries. The Organization itself adopted a clear goal of maintaining acceptable price levels ranging from 22-28 dollars per barrel and set a flexible mechanism to maintain prices within this limit and implemented this mechanism with the required speed and diversity.

      We hope that common interests of the Organization members would be an incentive to continue implementing this mechanism.

      The relation between the Organization and the non- OPEC oil exporters has witnessed considerable improvement especially in comparison to what it was during the seventies and eighties. While OPEC’s efforts were focused in sustaining the prices, the non- OPEC countries were seeking to increase there production and quotas in the world oil trade. This resulted in a decrease in demand on OPEC oil to about half its level between the years 1979-1985, which caused great losses to OPEC countries that depend largely in their economics and budgets on their oil revenues.

      The total collapse of oil prices twice, once in 1986, when by mid of the year the price dropped to about six dollars a barrel, and again during 1998 and 1999, when the price dropped to about 10 dollars, led to the improvement of relations between the two sides. Due to these two disasters some big non-OPEC producers realized that the interests of both OPEC and non- OPEC producers are the same, and that OPEC alone cannot take the necessary measures to maintain market stability and avoid sharp fluctuations in prices. Hence a new era began in the relation between the major producers from within OPEC and outside it, on the basis of cooperation in efforts to stabilize the market and sustain prices at reasonable levels acceptable to both producers and consumers. Those efforts thanks to the cooperation of the Russian Federation, Mexico, Egypt and Oman and other exporting countries with OPEC succeeded in sustaining oil prices from 1999 and up to date. Of course we hope that the conviction in the common interests of the OPEC and non- OPEC oil producers becomes deep rooted and strengthened so as to arrive at results that achieve the interests of both parties.

      The relation of OPEC countries and international oil companies has also passed through important developments that are, in our opinion, positive. At the beginning of the 1970s, after the OPEC producers assumed the responsibility of production and pricing of their oils, the policy of excluding international oil companies from the production sector through nationalization and 100% ownership spread as a reaction to the unfair agreements that had prevailed before and which were based on the concessions system.

      Structural changes in the world oil trade and the need for modern technology and financial investments owned by the international companies made most producing countries, starting from the mid-eighties, amend their laws to allow international companies to participate exploration and development according to production sharing agreements and other agreements, which ensure the interests of both parties in a fair way.

      These changes are, in our view, very important, since those companies have an effective role in the development of oil production and consumption. Such approach in the State of Qatar resulted in tangible additions to the proven reserves that raised the productive capacity to the double.

      However, the most important positive developments that occurred in the world oil trade market is in the relation between the oil producing countries and major oil consuming countries. After periods of estrangement, challenging and confrontation in the 1970’s and 1980’s between the oil producing countries, especially the OPEC countries, and the major oil consuming countries represented by the International Energy Agency, we witness today dialogue, cooperation and exchange the views with the aim of understanding the position of each party and its legitimate aspirations. The efforts aimed at further mutual confidence and cooperation between the two parties to realize the balanced common interests must be supported and reinforced because the interests of both parties require maintaining market stability and securing the supply of the oil needs of consuming countries at acceptable and reasonable prices to both parties.

      Undoubtedly, the periodical meetings held between the producing and consuming countries, the first of which was in Saudi Arabia and latest in Osaka, Japan, in 2002, are a fruit of this cooperation which we hope will continue regardless of the differences in opinion, because constructive dialogue and understanding the mutual viewpoints constitute the solid base for the positive relation targeted by all active parties in the market.

Honourable Audience,

      The mission of your Organization represented by your esteemed Ministerial Council is to achieve a reasonable balance between the interests of the producing and consuming countries and at the same time coordinate with non- OPEC exporting countries on the bases of the common interests of all, even if some have special considerations that limit their level of cooperation.

      In conclusion, I wish you all success in achieving your tasks, and wish you all a pleasant stay in Qatar and a safe return home.

May the peace, mercy and blessings of God be upon you.