After three days of intense debate, a resolution was passed in OPEC.
By Han YiHeng and Brian Lee
In an unprecedented move, the Organisation of Petroleum Exporting Countries (OPEC) came together to pass a resolution on the issue of dropping oil prices and diversification of energy. The resolution was debated for only around an hour, and it was the first one to be introduced, with no amendments being made to the draft resolution.
Resolution: Effective and Feasible?
The resolution called for OPEC to unite, and dealt with the stabilization of global demand and supply. The growth of r
enewable energy has led to growing concerns amongst OPEC nations, as countries called for the diversification of their respective nations' economies, to reduce their dependence on oil. Issues such as market volatility were also raised, as member-states agreed on more frequent meetings and the creation of a “Council of Collective Knowledge” to keep a closer eye on the supply and demand of oil.
However, there was no mention of the adoption of renewable energy in the resolution even though it was heavily debated during the committee sessions. In an exclusive press conference conducted by Al-Jazeera, reporters came to understand that many countries were opposed to the rapid replacement of oil. Gabon mentioned that OPEC “is not concerned with the introduction of sustainable energy”, stating that “our main focus is oil output”.
Most of the countries, while not extremely opposed to the idea of sustainable energy, insisted on the fact that their own countries were heavily reliant on oil and would need the revenue generated from its sale to combat the economic slump brought about by COVID-19. One such country, South Sudan, was especially averse to the diversification of energy, stating that his country was “extremely vulnerable to economic shocks” and needed a “more stable oil industry” before it could consider implementing different forms of energy. Iraq shared similar sentiments, expressing concern that its economy would “take a hit”, before expressing that “now” would not be a good time to experiment with renewable energy.
If not now, then when?
The UN Climate Science Body released a report stating that to prevent temperatures from hitting disastrous levels, countries needed to cut all carbon emission by 45% before 2030. A study released by Harvard University estimates that nearly 9,000 oilfields in 90 countries produced greenhouse gases equivalent to 1.7 gigatons of carbon dioxide, generating 5% of the world’s greenhouse gas emissions from the production of oil alone. It is worrying to know that even more emissions are generated from the usage of oil. In the press conference, Venezuela proposed the use of a sovereignty fund, set up by members of OPEC to introduce renewable sources of energy to poorer countries that were unable to afford to lose its revenue from oil production.
However, upon examination of the passed resolution, no mention of such an idea was written down. Even though countries were worried about the emerging sustainable energy sector and the economic losses they would potentially sustain, the resolution did not manage to address it. The attempt at integrating OPEC’s interest with environmental interests was made, though not elaborated on.
What’s next?
As OPEC begins a new debate on the sustainable production of oil, more solutions will be raised on how countries will juggle the ever-mounting issue of pollution and climate change. Hopefully, sustainable energy will be a part of the debate and make its way into the resolution.