ADIPEC 2020

[M022-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:14:44 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

Thank you very much for that introduction, and I would argue that OPEC has been, and continue to be taking proactive role. That is exactly what you have mentioned with regard to the agreement; the agreement goes all the way beyond 2021 to the end of April, with the caveat that we could also decide to extend it for the rest of 22. It is certainly that the April agreement took into account what may have happened, and proactively decided to be prepared for the worst, and therefore we assume that the agreement is not only helping, but it has been actually an agreement which had that vision in its setting as well.

[M022-08] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:15:45 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

We, as you may recall, have been also tweaking with it, commensurate to what we have seen over the last few months, and we still have the same tool in our kit, and we, with the consensus of everybody, we could navigate with this agreement, and tweak with this agreement subject to what we may see in the future. We are also hopeful like everybody in the whole world that we seek a solution to mitigate the virus in the form of vaccine, and the spread of vaccine availability would be the most meaningful type of mitigator for this situation. So, we are still hopeful that vaccine is found, that vaccine or vaccines are spread, hopefully a mobility would be regained, and the state of normality to the world economy would transcend as a result of that.

[M022-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:22 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

John, you know me again that I do not put policy lines ahead of reaching out to everybody, but I refer you to what we have done in the past. We did tweak, and I believe that with consultation with our friends, some of them are present here, and some of them are not, but I know wholeheartedly that they are committed to the principle of tweaking. I would go and argue that it could be a tweak even beyond what the So-called analysts are talking about, but the difference between us as OPEC Plus and the juror is that we are keeping our flexibility in our hands, and when we are looking at the market, we see how these things evolve.

[M022-11] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:19 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

Keep in mind, and I will just give you an example, you know with all the new spread which is happening in Europe, and commensurate with that, we have the welcome returned of Libya's production, and yet we are maintaining the market in a sustainable stable environment today. I do not think that a lot of people are giving it the right attention, but if it was not for this capability and capacity within OPEC Plus to be there physically present with all the readiness to march, and move, I do not think that we could have had this situation preparing today. Who could have said that with the return of Libya, and has about almost a million barrels today, and who could have said that with the new emergence of lockdowns, which will impact mobility probably partially, but not like what we had in April, and yet we have the stability of the market as it is today. So ''yes'', we are ready right as you know, and definitely, I would not predict, but certainly, some of those who are throwing predictions, may get disappointed, because I think the choices which we have are open choices.

[M022-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:36:04 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

First of all, I would like to congratulate the new administration for winning that election, but regardless of what happens, I think we have quite a history with the US of almost 80 years, if not more of dealing with each other. We are going through the same transformative mode as Saudi Arabia. We are converting our power sector into more towards the renewables and gas. We are seeking the same quest, which is being more efficient producer of energy, and are sure that we are also efficient in terms of our investments. I think the whole quest of being efficient energy producer and energy consumer is a global quest. So, anything that improves efficiencies in terms of production, in terms of handling or even consumption, and also in terms of developing a more sustainable global energy system is a quest that we are all aspiring to achieve, and I believe that every and each country has its own responsibility of attending to that quest.

[M022-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:37:29 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

I also believe that to do that, we have to develop lots of technologies, and we should be indifferent on which of the fuels that we use so long as we achieve our KPI's - Key Performance Indicators- of ensuring that the world is well supplied with energy, and the world is also producing this and consuming it in a very efficient way. We are also doing it while set we are achieving our sustainable development objectives, and are, certainly, making sure that all of these greenhouse gases at all sectors are being mitigated or handled in a way that will makes us get away with the so-called a win-win situation, powering and energizing the world economy.

[M022-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:38:24 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

Yet, we are doing it in a sustainable way, and that is why a lot of people see eye to eye with us with regard to the circular carbon economy as a concept, which is going to be the congregator of many efforts, and the CCE would come with a big tag in terms of international collaboration, challenging technologies which need to be produced. So, it is a welcomed new approach to US, but it is certainly as a producer of hydrocarbon will look at CCE, and we have been working with them on many things, including the current carbon sequestration. This a program has started with three or four different administrations, and there is a lot of commonalities with the new administration will be doing, and what we are actually physically doing in Saudi Arabia.

[M022-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:40:05 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

Well, the nuclear issue is more of the political strategically issue. I think it is certainly not within my domain. Honestly, I also know that there is an institutional legislative arrangement that needs to be seen, and therefore, I would be one of the spectators as opposed to commentaries on this issue. We will handle whatever may happens within OPEC plus, likewise we did with Libya, likewise we did with Iran in the previous situation, and there were so many other countries which went through different scenarios in different situations where their production was severely curtailed for all sorts of the reasons, and historically OPEC alone and OPEC Plus did manage to handle these reversals as they come both at both ends when there is a production declines, Including industrial cost production declines which we have been able to manage.

[M022-19] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:41:17 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

Again, It is a safe to bit on the resilience of OPEC Plus with regard to the 2 trillion or whatever the number may be. Again, keep in mind that it will be if it comes, and I hope it does, because it would be spent on the power sector. Well, that is a commendable endeavor, because actually there is no oil that is being used in the U S almost none when it comes to the power sector. So, changing the use of cool and converting it into using renewables is actually a commendable way of attending to climate change issues, and of lending a great deal of support to the mitigation endeavor, including the reduction of the greenhouse gases. It is something that the world would seems to look forward to because, as you may know, John, the U.S and China are the biggest emitters, and therefore, novel and creative solutions like this are commendable, especially that it would impact more or less upon call in the first place.

[M022-23] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:58:06 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

I have a history with that since I have been involved in this, and you know if you let go, and check out; I have said a lot of things about that issue in the 90s. When I was warning people that the low investments carry the seeds for the higher prices, and the lower prices carry the seeds for the higher prices, and in their reverse does happen too. My concern now is not a lot of people are focusing on the issue of what it takes to maintain potential.

[M022-24] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:58:43 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

You know that lots of people do not either they ignore or not willing to see how much money each and every oil company be it international company IOC. The amount of money that spent on investment just to maintain the potential, is a lot, letting alone even reaching out to their other objectives, be downstream, midstream or diversifying their portfolio, and what you will have if this situation today prevails, and the market situation prevails the most preparing it gets to be extended today. I believe strongly that we would wake up one day with an evolving growth in the world economy, but without enough substantial amount of capacity to attend to that and we have to also say it not only in the terms of upstream investment.

[M022-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:59:47 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

I would argue that you would have a bottleneck on the midstream; you will have a bottleneck on downstream. It is exactly what happened during the 90s. The reason we had higher oil prices in the beginning of the 20, and what have you until 15, was to do with the lack of investment, and if you look back, you would see it was the lack of investment on upstream, midstream, and downstream. So, I worry a lot that if, as was Pavel was saying in his first early remarks that, this situation would be carried forward with us until the beginning of 2023. We had lost 2020, and this means that we would lose 21 and 22 too, and if you look at the capital, spending that could have happened in 2020, 2021, and 2022, I would love to see how the world will relate to oil prices and energy prices in general with a low investment and the impact of that, as you know, lots of heroes will be lost: lots of contractors would be lost, lots of engineering companies would be lost and lots of manufacturers would be lost.

[M022-26] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 01:01:14 · ADIPEC 2020 · 2020-11-09 · مشاهدة عند هذا التوقيت

There are lots of people who had been under the tire over this year and will be under the tire next year. That is why I believe that the whole energy eco-system, and along with the world economy, would be best served. If the world economy needs the efficient energizer, and moderately costed energy, mitigating the virus, finding the vaccine, and spreading the vaccine, it should be our utmost everybody's in this world at most open purpose.