IN THE NAME OF GOD

THE MOST COMPASSIONATE THE MOST MERCIFUL

Your Excellency The President of the Republic of Venezuela,

Your Highnesses and Excellencies The Heads of States and Their Representatives,

Ladies and Gentlemen,

 We meet here today in Caracas to celebrate the 40th anniversary of the establishment of the Organization of Petroleum Exporting Countries, (OPEC) with the signing of its first resolution in Baghdad on September 14th, 1960.

 As we mark this occasion, we must remember in all appreciation the leading role played by Venezuela and its late Oil Minister Mr. Perez Alfonso, in extending the bridges between Latin America and the oil producing countries, as well as the hard and diligent work to realize and promote cooperation between the OPEC countries for the protection of the interests of the oil producing countries.

 I am also glad to mention that the State of Qatar was the first country to apply for membership and became just three months after the establishment of the Organization the sixth member with the five founders.

 The justification for establishing OPEC and the principles and objectives it set for itself since its foundation remain sound. The commitment by the member states to secure oil supplies to the consumer states at equitable prices that guarantee market stability and provide the necessary investments for maintaining the availability of this vital commodity and the continuation of the basic demand for it, are among the important goals that the Organization is keen to realize.

 Moreover, the need of the member states to provide financing for their economic development and raising the standard of living of their peoples, and their great dependence on revenues from exploiting their depletable resources, is still a basic necessity.

Mr. President,

 During the last forty years, our Organization went through different phases and challenges that threatened its very existence. Yet it survived these challenges part of which were the conditions of the Organization itself. It managed to overcome the obstacles with the experiences it accumulated during its long history, to celebrate today its 40th anniversary, as a strong and united Organization, executing its role with all responsibility and efficiency.

 The Organization did not seek confrontation with consuming countries or others. On the contrary, it did its utmost, over the last two decades, to establish dialogue with consumers and other producers. OPEC was seeking common ground that brings stability to the petroleum industry and especially in sectors related to oil supplies and the oil market OPEC countries have long ago called for putting an end to the high taxes imposed by some industrial states on oil products.

  Unfortunately those states have continuously put the blame on the producing states even after OPEC has recently raised its production by more than three million barrels a day this year and even after several producing countries reached their maximum capacity. These policies have proved their failure, though they have been adopted for a long time. They could not prevent the increase in demand for oil as originally targeted. Moreover, revenues from these taxes were used in many areas that are unrelated to energy and environment. In many countries the tax on oil has become an important mean for financing their various projects instead of looking for other sources of income. I feel it is important to clarify in this respect that the citizens in consumer countries may believe that the reason for the price increase of oil products is the policies of the oil producing countries, whereas in fact they are high in the first place due to the heavy taxes imposed on these products by the consuming states.

Mr. President,

 It was not in the interest of producers or consumers that oil prices decrease to the extent they have reached a short time ago. It is well known that low oil prices and continuous market fluctuations were not encouraging to investment in the field of additional production capacities to match increased consumption in a world that witnesses flourishing economies and populations aspiring to improve their living standards. It is therefore only natural that producing countries cooperate in determining production levels in order to improve prices.

Mr. President,

  The State of Qatar proposes that OPEC adopts a suitable mechanism for the stability of oil prices with levels that maintain its purchasing value, specially that the consuming countries, and the major ones in particular, are now proposing prices they consider acceptable and fair, which are not out of the range producer nations are seeking. They are prices that encourage the necessary investment in additional production capacities that secure the required oil supplies and continuity of world economic growth at acceptable rates. This will also contribute to the oil market stability.

 It is essential that this proposal be discussed with the consumer states and other producers at the Seventh International Dialogue Forum between producers and consumers which will be held in Riyadh on the seventeenth of coming November. We hope that this vital matter will be discussed rationally and thoroughly and come out with tangible results that take into consideration the interests of the parties concerned, instead of continuing to follow the present approach based on experiences and old premises that time has surpassed.

Mr. President,

 I would like to extend to you my sincere thanks for the opportunity accorded to me to participate on this happy occasion. I would like also to express to Your Excellency and to the friendly people of Venezuela and its government my appreciation for your kind hospitality and warm reception and excellent preparations.

 We wish our Organization, its member states and their peoples all prosperity and progress.