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PART TWO
OAPEC Activities in 2012
The availability of acceptable levels of global oil inventories.
•
The availability of acceptable substitute production capacity of
•
crude oil in certain Arab countries, such as Saudi Arabia, Kuwait,
and UAE, is enabling them to compensate the probable shortages
in cases of emergency.
The larger part of oil price fluctuation that emerged with the
•
outbreak of political turmoil is largely correlated to the unjustifiable
concerns about the unknown, which is not based on facts.
Regarding the implications of political turmoil that took place in
certain Arab countries for refining industry, the paper indicates that
in the short term the industry will be adversely affected as a result of
the slow pace of implementing the previously announced new refinery
establishment projects, and the upgrading of the existing refineries. In
the long term, such projects are expected to flourish, driven by the need
of governments to provide new job opportunities, and clean petroleum
products, and to improve refining industry’s compliance with legislation
aimed at protecting the environment against pollution.
In conclusion, the paper reviews the strategic plans announced by
OAPEC member countries to avoid the probable negative impacts of
political turmoil that took place in certain Arab countries for oil supplies
to global markets and refining industry. These strategic plans are
summarized as follows:
Enhancing transparency in information exchange between oil
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producing and consuming countries to ensure security of demand
and supply.
Supporting the new refineries establishment projects and upgrading
•
the existing refineries to contribute to securing adequate supplies
of petroleum products to global markets.
Enhancing cooperation between national and global oil companies
•
to meet the challenges facing the refining industry, share risk, and
capitalize on the strengths of each party.
