Opec Warns Against Reducing Demand for Oil

Countries across the world rely heavily on oil andpolicies aimed at reducing world dependence on oil
its byproducts to create much of the energy thatcould lead to reduced availability in the future.
their citizens consume. The availability of gasolineSuch declaration is cause for concern since history
to power vehicles, boats and aircraft in the Unitedand the principles of economics demonstrate that
States of America is dependent largely upon oilreduced supply of a high demand product leads to
that is imported from other nations, andhigher prices. Al Hamli reasoned that the exporting
particularly from members of the Organization ofcountries have minimal resources and that hefty
Petroleum Exporting Countries (OPEC).investments in production when demand is
OPEC, founded in 1960, is a conglomerate ofuncertain would be financially wasteful.
major oil producing and exporting nations that areThe United States and other industrialized nations
estimated to produce 40 percent of therely heavily on fossil fuels for energy to fuel
world’s oil and to possess about two thirds ofvehicles, heat homes and to produce and
the world’s known oil reserves. OPECtransport a multitude of other oil dependent
monitors the worldwide oil market and establishesconsumer products. Nonetheless, concerns about
pricing for oil which affects people throughout thethe limited nature of oil, unrest about the
world. According to OPEC’s mission is “toenvironmental impact of oil and a long held
coordinate & unify the petroleum policies ofdependence on imports of foreign oil have
Member Countries & ensure the stabilization of oilcontributed to a substantial movement to reduce
prices in order to secure an efficient, economic &dependence on oil for energy.
regular supply of petroleum to consumers, aThe emergence of alternative forms of energy,
steady income to producers & a fair return onsuch as wind energy and bio fuel is threatening to
capital to those investing in the petroleumweaken world reliance on fossil fuels for energy in
industry.” The organization also setsthe long term. However, the tremendous extent
production quotas for most of its members.of the world’s reliance on oil and natural gas
The Associated Press reports that the presidentsuggest that any changes impacting the demand
of OPEC, Mohamed Al Hamli, has asserted thatfor oil that do take place will do so gradually.