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Sun 27 Nov 2011 08:33 AM

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Saudis fear climate talks will hurt OPEC oil income

Gulf state wants direct investment to diversify its economy, offset fall in petrodollars

Saudis fear climate talks will hurt OPEC oil income
Oil cartel OPEC opposes emission-reduction cuts that could threaten crude demand

Saudi
Arabia, OPEC’s largest crude producer, will seek to ensure climate talks
starting this week in Durban, South Africa, won’t unfairly limit the exporter
group’s income, the kingdom’s envoy to the negotiations said.

Saudi
Arabia and its OPEC partners are being asked to bear too much of the burden of
cutting greenhouse-gas emissions because their economies depend on oil and
natural-gas revenue, Mohammed al-Sabban, said in a speech at the Energy
Dialogue conference in the capital Riyadh on Nov 21.

Climate
change talks are at a stalemate because richer nations want emerging nations to
be included in a global deal. Poorer countries are seeking more effort from
states that have emitted the most heat-trapping gases in the past. Members of
the Organization of Petroleum Exporting Countries, which supply 40 percent of
the world’s crude, oppose emission-reduction targets that threaten oil demand, al-Sabban
said in an interview.

Any
package adopted at Durban should include a detailed decision on how to minimize
the adverse impact of climate policies on developing countries in general and
OPEC nations in particular, he said.

Saudi
Arabia hasn’t asked for compensation for the loss of income from oil sales as
consumers look to obtain energy from cleaner fuels such as natural gas or
renewable energy, al-Sabban said. Rather the kingdom wants technological
assistance from developed countries and more direct investment to diversify its
economy, he said.

 “It is very crucial to include provisions to
this effect in any balanced comprehensive package we adopt in Durban,” said
al-Sabban, who is also a senior economic adviser to the minister of petroleum.

UN
climate negotiators gather in South Africa on Nov. 28 for two weeks of talks
aimed at agreeing a successor to the present commitment period of the Kyoto
Protocol, which obliges developed countries to cut greenhouse gas emissions by
about 5 percent below 1990 levels in the five years through 2012.

“Saudi
Arabia thinks that a second commitment period for the Kyoto Protocol is a must,
and without having unconditional emission reduction numbers from developed
countries for the period beyond 2012, it will be impossible to have any
agreement in Durban,” he said.

Saudi
Arabia and other developing countries won’t agree to renegotiate the United
Nations’ Framework Convention on Climate Change, known as the UNFCCC, al-Sabban
said.

The
Gulf state wants carbon capture and storage, or CCS, to be included in the
Clean Development Mechanism, the second- biggest CO2 market that was set up by
the Kyoto Protocol in 1997. CCS is an experimental technology that siphons off
carbon dioxide emissions from power plants and factories and pumps it
underground for permanent storage.

OPEC’s
members are Algeria, Angola, Ecuador, Iran, Iraq, Kuwait, Libya, Nigeria,
Qatar, Saudi Arabia, the United Arab Emirates and Venezuela.

 

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fereydoun barkeshli 8 years ago

It is absolutely important for OPEC as an organization and its individual member states to take up the issue of climate change very seriously.Western civilization and modern economic and sicial success story was built upon oil as the major source of energy.Now that other nations in Asia,South America and Africa have opted for development based on hydrocarbore resources,western governments have imposed a great deal of limitations to their growth based on fossil fuel energy.Saudi Arabia has foretunatly has taken a lead among OPEC members and does a good job to tackle the issue properly.However other OPEC and Non-OPEC members need to cooperate and support Saudi Arabia.

procan 8 years ago

Canada will do many things to help the global community and has done so for 100 years But as a future major energy player it will stand on its own. Most North Americans are not fans of OPEC.