6th India-OPEC Energy Dialogue | 16 Nov 2023

Source: PIB

Why in News?

The 6^th High-Level Meeting of the India-Organization of the Petroleum Exporting Countries (OPEC) Energy Dialogue brought together key representatives at the OPEC Secretariat in Vienna, Austria.

• The meeting delved into critical aspects of oil and energy markets.

What are the Key Highlights of India-OPEC Energy Dialogue?

• The Meeting focused on key issues related to oil and energy markets with a specific emphasis on ensuring availability, affordability and sustainability, which are necessary to ensure the stability of energy markets.
• The meeting concluded with both parties underscoring the importance of fostering enhanced cooperation between OPEC and India moving forward.
• World Oil Outlook 2023, which forecasted that India would be the fastest-growing major developing economy, averaging long-term growth of 6.1% between 2022-2045 and accounting for over 28% of incremental global energy demand during the same period.
  • Both sides have recognized the importance of India as the third-largest energy consumer, crude oil importer and the fourth-largest global refiner, in global economic growth and energy demand.
• The meeting also acknowledged the achievements and initiatives of India in the fields of renewable energy, energy efficiency, hydrogen economy, and climate change mitigation.
• It was agreed to hold the next High-Level Meeting of the India-OPEC Energy Dialogue in 2024 in India.

What is the Organization of the Petroleum Exporting Countries (OPEC)?

• About:
  • The OPEC is a permanent, intergovernmental Organization, created at the Baghdad Conference in 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.
    • It is headquartered in Vienna, Austria.
• Objective:
  • OPEC's objective is to coordinate and unify petroleum policies among Member Countries, to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations; and a fair return on capital to those investing in the industry.
• Members:
  • Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates and Venezuela.
  • OPEC nations produce about 30% of the world's crude oil.
    • Saudi Arabia is the biggest single oil supplier within the group, producing more than 10 million barrels a day.

• Reports and Outlooks:
  • Monthly Oil Market Report, Annual Statistical Bulletin and the World Oil Outlook.
• OPEC+:
  • In 2016, largely 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 what is now known as OPEC+.
    • OPEC+ now includes the 13 OPEC member countries along with Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan.
  • OPEC+ countries produce about 40% of all the world's crude oil.