The recent 6th high-level meeting of the India-Organization of the Petroleum Exporting Countries (OPEC) Energy Dialogue revolved around pivotal issues of the oil and energy markets. The discussion was held at the OPEC Secretariat in Vienna, Austria – a significant event, which has left a substantial impact on India’s energy sector.
Key Highlights of India-OPEC Energy Dialogue
Several important matters related to oil and energy markets were discussed during the meeting. The focus was primarily on ensuring availability, affordability, and sustainability of oil and energy in order to maintain the stability of energy markets. Both parties concluded the meeting by stressing the importance of fostering increased cooperation between OPEC and India in the future.
The World Oil Outlook 2023 forecasted that India would be the fastest-growing major developing economy, recording a long-term growth of approximately 6.1% between 2022 and 2045. It is predicted that India will account for over 28% of incremental global energy demand during this period. Both sides acknowledged India’s significant role as the third-largest energy consumer, crude oil importer, and the fourth-largest global refiner in contributing to global economic growth and energy demand.
The delegates lauded India’s accomplishments and initiatives in renewable energy, energy efficiency, hydrogen economy, and climate change mitigation. It was agreed that the next High-Level Meeting of the India-OPEC Energy Dialogue would be held in India in 2024.
About the Organization of the Petroleum Exporting Countries (OPEC)
Formed in 1960 at the Baghdad Conference by Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela, the OPEC is an intergovernmental organization. It aims to coordinate and unify petroleum policies among member countries to secure fair and stable prices for petroleum producers, ensure an efficient, economic, and regular supply of petroleum to consuming nations, and facilitate a fair return on capital for those investing in the industry.
OPEC is headquartered in Vienna, Austria and has thirteen member countries including Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, the United Arab Emirates, and Venezuela. These nations produce nearly 30% of the world’s crude oil, with Saudi Arabia being the largest single oil supplier within the group.
The OPEC+
In 2016, due to falling oil prices driven by substantial increases in U.S. shale oil output, OPEC formed an agreement with ten other oil-producing countries, creating what is now known as OPEC+. This new alliance includes the 13 OPEC member countries alongside Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Russia, South Sudan, and Sudan. These OPEC+ countries collectively produce about 40% of all the world’s crude oil.
UPSC Civil Services Examination, Previous Year Question (PYQ) Mains
The question pertained to the progress made in India regarding access to affordable, reliable, sustainable, and modern energy, emphasizing its importance to achieve Sustainable Development Goals (SDGs).
