HRH at OPEC+ Conference - 4 June 2023

[M111-01] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:00:00 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

It's still good afternoon, and I hope we have provided you with enough excitement this weekend, that is a weekend that has not gone in vain at least, and they keep coming. I don't know if you have seen your iPhones or what have you, because they keep coming. We have issued three different types of statements; one that relates to an agreement that we've struck with regard to what we will do in 24 and even beyond, and another one amongst individually agreed upon and individually will be executed, as we have done in April, whereby the countries that had agreed to do the voluntary cuts have extended that voluntary cuts to end of 24. I would have to call it the "Saudi Lollipop", which is a million barrel of reduction that starts at the first of July, and that million is also extendable.

[M111-02] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:01:30 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

What we have achieved also, if I may, and I love to engage our friends here because not only those who are sitting on my right and left are heroes of OPEC PLUS, but are heroes of their own governments, because they made the right choices and counsel their governments to the right course. What we have now is unprecedented agreement in that it really look back and ask the questions, the hard questions; how could we create an agreement that will create more visibility to the market, much more transparent, much more fair, and much more dependent or independent from our own readings and our own claims, regardless of what are these claims, but we are relying 100 percent; For the first time, we make a recognition to the fact that when it comes to our monthly production numbers, we have reasserted our commitment to the independent sources.

[M111-03] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:03:00 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

And now, we're taking it to another additional layer, where we will rely on respected independent institutions to verify capacities and therefore, we ensure that this whole process would be first and foremost technical and independent of our own claims, or our own aspiration, or even co-mingle this subsidiary arrangements, such as the JTC or GMMC, or even the Secretariat in looking at these numbers, verifying, or validating these numbers, which makes the whole thing fair. Many of you met members of the media or experts or analysts have always quarreled with these numbers that are allocated here and there, it created confusion.

[M111-04] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:04:09 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

So, we're here to ensure that confusion, although it was not intended, but I think we're going the extra mile, trying to make sure that people see the numbers, read the numbers; And when it comes to conformity, we have continued with this practice of ensuring the continuity of how much people it will be reliable for assuring that in accordance to the secondary sources, they will deliver their commitments. So, it's really a great day for us, because the quality of the agreement is unprecedented, and I would have to say the quality of cooperation is unprecedented.

[M111-05] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:05:13 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Yes, I was looking at the bits and pieces that comes out from our friends the anxious so-called interested parties, without being too facetious and picking and choosing, but I really believe that this meeting also has its own precedent, that with all due respect, so many, if not all of you, have never had any idea: Where we are? What we are discussing? and What is our ambition? And you could see that the ambition was bigger and more relevant, but more important it is all triggered towards or leading towards more transparency and more visibility. We owe it to our countries, we owe it to the industry, we owe it to those who are engaged in these markets, that we continue set the example of how much one needs to be transparent, in order to achieve the most. I think the dominant and more important priorities are seeking stability and sustainability.

[M111-06] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:06:36 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

There is no more priority than having to be transparent. It's the old recipe, and people have to come clear about their intentions. This is another confirmation of what OPEC PLUS can be, in terms of discharging its own responsibility.

[M111-07] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:01 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Thank you, again for being here, and I will make, I think, we will make ourselves all available for any question from your end. I would like to give the floor to our friends, if they would like to have a few comments, if they're on, if you don't mind.

[M111-09] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:07:36 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

As I could it is a Saudi Lollipop, you can ask my friends here or any OPEC PLUS Minister. We've never divulged what we will do, and we want to just ice our projection or prediction that we will succeed to make this deep, so we wanted to ice the cake, if you could call it. With what we have done, we have had a practice once, we tried it back in 2020, when we had a voluntary reduction with three of our colleagues here UAE, Kuwait and Amman. And then we had to go through that practice again in 21. We always like to add suspense, as you know, the Saudi Arabian suspense, and because we weren't going to make sure that people continue working and continue predicting or try to predict what we do and what we don't do.

[M111-10] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:08:44 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

So, it's part of the storyline that you know every month we will review and as I said it is extendable. I would love to see who is going to read our Saudi mind of what they will do now, are they extending or not? I'll keep it for their own choice.

[M111-12] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:09:08 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

But don't take a precedent from any experience, because what we have here, we owe it to our friends, I think all of our friends; I would reinstate the wording by saying: we as a cluster of 23 countries, we will do whatever it is necessary to bring stability to this Market. What is necessary, not whatever.

[M111-14] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:10:10 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

First, let me answer the last bit, because some people don't listen to what I say from A to Z. They have a way of picking and choosing words, adjectives, verbs to their own liking. However, what I said in Doha, I recognize the idea that there are speculators, and it is part of any market, and the whole story. So, I'd prefer people to see that piece in its entirety. I'm not going to get into this subject of somebody who called me a ghost, what you call it. Do remember that movie Ghost buster? I think it was speculator busters.

[M111-15] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:11:07 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

This is not a toy, this is not a joke; this is a market that needs stabilization this is the millions and millions of people, and their well-being depends on having a Sustainable Stable Market. People like to make a joke about it, here and there that's fine. So, No, we are there to do as things progress, and more certainty comes out. Yes, there is an action to that, and as things may not go that direction. There is not only an action by us, but even an action by our friends if it is necessary. You know I'd hate to differ with that in Greenspan when he said whatever it takes, I twisted it to whatever is necessary.

[M111-16] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:12:05 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

As to the first part, No, we did say in April when we did the voluntary cut, we called it a precautionary. And in fact, the statement that is issued today repeat that word precautionary. We're hedging, but we're using the fundamentals to hedge, and we will continue to hedge, as long as we don't see clarity and ability. And I guess, this is the 101 for any commodity minister or anybody who is into mining, or into energy or whatever. The difference is that we are attentive, where others in other commodities, and what have you, again I will refer you to what happened to 22 to see who is proactive, preemptive and attended to this market more than anybody else. Sorry, to take so much time.

[M111-18] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:13:54 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Well, the first question: Secretary Blinken and every U.S. official and even citizen they're more welcome to Saudi Arabia that's my piece that I would refer to, our bilateral relationship, as you know, it's been going on for 80 years and it' been reinvigorated always been invigorated and will continue to be, and we look forward for further collaboration. But you know, we're a bit worried about getting people to be too jealous about that relationship. So, we'll be quite about that. But, with your question, the second question, this is an organizational matter, I think the right person to ask is the Secretariat and the Secretariat of procedures so I'm not going to reflect on that issue.

[M111-20] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:15:36 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

I don't recall Nigeria was Exempted. Oh, yes, I'm sorry, that's an accident I don't want to remember. No, No but that has been with us, you know. We've been specific and clear about it. It's been our common practice in OPEC that when country goes through a situation of what sort, the nature of the situation is different, but as long as they, and I've repeatedly answered that question that in the case of Libya, once go back to their original production that they had when we started these agreements then they were more than welcome to join and work with us. And so, as also the issue of Iran. But you know Halima, that both of them are still under different circumstances, but they are under producing by a half amount of barrels.

[M111-22] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:17:08 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

I will give you the same response, not only myself, all my Saudi predecessors had responded. We are not targeting prices and I gave a lecture, full lecture with Dan Jurgen, explaining and one of your colleagues I think Emerita, if she's around, I also had had a lengthy discussion with her. You could see it in YouTube. Why we no longer, cannot actually either us or OPEC, or OPEC PLUS target prices, because they've proven to be failed and failed miserably; And I don't think this is a lesson that we will ever forget. It came in the 80s, and probably early parts of the 90s. And I don't think anybody with any kind of sensibility of knowing how this markets now operates will opt for something like that.

[M111-23] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:18:12 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Your first question was about volatility. You know, I've heard and seen some sarcastic comments here and there about why, very simple. We saw what lower prices did to the industry, and how it impregnated the situation for higher prices and inversely too. We saw how high prices did to the industry and destroyed the industry in 2020, and how it would also impact planners and finance. Minister of Finance can write books about rising expectations, spending spree and then a dip, whereby you are to make hard and hard choices; both which I call it volatility and I'm sensible enough person, I think, I hope that people can take that for granted, that I know what the word volatility means, it is not one-sided; it's both. And we're focusing on all of the three levels. We don't like short-term volatility; We don't like medium term volatility; and certainly, we don't like long-term volatility.

[M111-25] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:01 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Well, we because we did it before in 21, and why you deny me the right to to keep people in suspense. It's a privilege, and I'm honored to be the Minister of Saudi Arabia that the Saudi government warrant me that privilege.

[M111-27] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:20:58 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

What I believe in April is what the second resources had passed us. What I will believe in May is what will the second resources would issue, somewhere mid-June. As to what is my and everybody's projection, I don't have my own personal projections. We look at everybody's projections. And we don't have that bias. We look at, I think, all of us do that, including Public Secretariat. We look at the contours, but again a few times I said you know forecaster are forecaster, we respect them, they do their job to try to project the future. And it's not wrong to be wrong, because that's the nature of things. Things changes, things happen and therefore there is nothing called "rocket science forecaster". I don't do this, you know, holistic, I don't look at forecasts, as one of things that I look at. I'm not going to tell you how I look at these things, because you may come and compete with me, as a minister.

[M111-29] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:22:49 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

If you look at the agreement, there are certain assessments to be made for three of our respected countries, priory to our forthcoming meeting, hopefully, in November. But, in 24 we will all including us, including everybody will go for an assessment by those independent institutions, and that review will be done before the mid of 24. I think it would be disingenuous to start picking and choosing but you would notice that this 24 agreement does not have a baselines, because we wanted to work knowing the short time that we have, and I'm very grateful that Nigeria, Congo and Angola had agreed to do this assessment to ensure that whatever the number we had for them in the in this current agreement or is commensurate with what they could do in 24. And they have expressed and I have two of them here; I would be more than happy to hear from our friends here, to share their thoughts that they are willing. Whether if it is more or less, they will adhere to what that number would be, given the assessment of those independent assessors. So, I think holistically it's fair for everybody on 24, it's fair to everybody in 25.

[M111-30] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:24:43 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

And also, I would take a second or a few seconds, explaining that also Russia with regard to the February Baseline, I mean, commitment they have I know they have talked to Argus. I know they have talked to energy intelligence. I believe I don't know Herman was here, I think they've talked to PLUS and they have talked to or will be talking to HIS, as part of SNP, and they have made a commitment that whatever any assessment of these independent sources, they can come up with in June, that they're willing to accept the number, definitely. So, they agreed to put the 9.83. And if the jury as we call them the independence can give them either higher or lower number, it will accept to for them to carry forth their contribution to the voluntary cuts.

[M111-32] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:26:47 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

I don't worry; I keep repeating it. I don't worry. You know if I keep worrying, I think we all do ourselves a favor; I'll give it as a general advice, we all as human give to ourselves a favor of stop worrying and focusing on thinking and what you do, how you do, and attend to your issues. That's save the day for you, but worrying you just waste your time. So, I don't worry. With friends like the guys next to me on my right side and left side, and those who had left us unfortunately to attend their work, I have no reason to worry.

[M111-34] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:27:56 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

No, no, that's part of the suspense, so I'll keep you really knocking your head figuring it out: what would be on a day-to-day basis?

[M111-36] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:09 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

It is going to be a real million barrels. Just in case if anybody would like to fiddle with this number, you know, we've always honored our commitments. we've always discharged our fulfilments. Let be no mistake on quarreling about what we mean by a million. it will be a million barrel of oil, not tobacco, not pancakes, not whatever it is.

[M111-38] · سمو وزير الطاقة (HRH the Minister of Energy) · التوقيت 00:28:58 · HRH at OPEC+ Conference - 4 June 2023 · 2023-06-04 · مشاهدة عند هذا التوقيت

Well, you just answered me a while ago Herman that they reached out to you and reached out to many of their respected, you know, institutions that we rely on as secondary resources. They give you their explanation. They believe that the explanation they forwarded was hopefully will allow you and others to adjust their numbers on February. However, they have committed that whatever it may be the final tally on February they are discharge that commitment, and they will continue discharging that commitment. I have no other thing but to trust them, because we've seen them delivering. And look at their performance over the last three years, and you will see that they have discharged their commitment