With the reconvention of Organisation of Petroleum-Exporting Countries (OPEC) for the conference’s second day, solutions (regarding the agenda of reducing economic dependence on oil) came into greater focus. The session proved exceptional both in terms of the quality of debate and perspectives coming forth, with the delegates of Indonesia, Saudi Arabia and Iraq once again directing the flow of discourse.
The delegate of Indonesia recommended, to committee-wide approval, that OPEC members purchase crude oil as opposed to refined variants, suggesting that it may increase domestic economic interaction and help growth. This would also provide increased opportunities from trade and foreign investment from nations like the USA, which would result in mutual economic benefit. This move would also support President Trump’s efforts to reduce the American debt.
Quoting the delegate of Gabon, “reducing oil dependency does not mean reducing oil exports,” a sentiment echoed by other allies of the United States, including Saudi Arabia, Indonesia and Ecuador. Each representative propagated the idea of diversification, albeit into different fields – solar power, agriculture and tourism respectively. With the delegates open to the idea of foreign investment, this may prove to be a revenue-generating opportunity for American firms.
However, criticism towards the Iranian representative again sparked in light of a controversial statement made during a speech. The delegate alleged that “international demand for oil will gradually reduce over time as its adverse impact – climate change – grows more obvious [sic].” However, a factual inaccuracy can be noted in the quote: ‘climate change’ is an outcome of natural processes, not emissions, and does not have an adverse impact. This renders their argument moot, as it revolves around an ‘adverse impact’ – something that hasn’t yet been observed.
Furthermore, international demand for oil is unlikely to contract unless renewable energy advances sufficiently. With nuclear power’s inherent risks and the uncertainty of power generation of natural processes, demand only looks to climb as it accommodates increasing consumption.
In all likelihood, the United States will benefit if the solutions proposed in OPEC are a part of the draft resolution that will be formed. Many of President Trump’s allies in Asia are aware of the economic inaptitude of the Obama Administration, and are actively helping the current administration overcome these errors to facilitate the American economy’s growth. Pay especially close attention to our next article as we question the members of OPEC, and continue to follow the proceedings at OPEC.
Reporter: Akrit Agarwal, Fox News
Editor: Akshita Mathur