Sixty years ago this Monday, the Al Shaab Hall in Baghdad hosted five of the oil world’s most consequential figures. Abdullah Al Tariki of Saudi Arabia, Juan Pérez Alfonzo of Venezuela, and the representatives of Iraq, Kuwait and Iran established the Organisation of Petroleum Exporting Countries. One of the most important economic groups of modern history, Opec today faces a transformation as profound as that at its birth.
As historian Giuliano Garavini of NYU Abu Dhabi has explored in his recent book, Opec was a standard bearer for cooperation amongst the developing and post-colonial countries. Just seven years earlier, an American- and British-backed coup had ended Iran’s attempt to nationalise its oil, intimidating others who might press for better terms. The immediate inspiration for Opec’s founding was the February 1959 unilateral cut in official “posted” prices by the international oil firms, reducing their tax obligations to their hosts.
But behind it lay years of particularly Venezuelan diplomacy and travel to the Middle East, leading to the Ma’adi Pact of 1959 in the Cairo suburb at the end of the first ever Arab Petroleum Conference. In those days of limited international flights and even international phone lines, Opec was a remarkable assembly of countries with different languages, cultures, geographies, politics, histories, religions, with very little in common beyond their vast petroleum resources. Others joined later, including Abu Dhabi (now representing the UAE) in 1967, taking membership to twelve by 1973.
Opec has been through at least four incarnations. Its first decade was spent demanding a fairer share of taxation in a glutted market from the international oil companies, the “seven sisters” of Shell, Exxon, British Petroleum and others, who in interlocking consortia controlled almost all oil across the Middle East, Venezuela and Nigeria.
After 1970, the market tightened. The 1973 oil embargo by some Arab states (not Opec) imposed over the October War with Israel was the catalyst, not the cause, of an enormous run-up in prices. The Iranian Revolution and outbreak of the Iran-Iraq War in 1978-80 further squeezed supply.
The Opec holdings of international oil firms were progressively nationalised, clinging on with minority stakes only in a few places such. The great national oil companies, still the world leaders in reserves and production, emerged – Saudi Aramco, Adnoc, Petróleos de Venezuela, National Iranian Oil Company.
From 1970 to 1981, the organisation’s concern was setting prices – usually upwards. Shell managing director Frank McFadzean cynically observed “senior Cabinet Ministers flying off with the melodrama normally associated with the relief of a beleaguered fortress” to obtain less than a month’s worth of oil for the UK.
Opec had become the world's most instantly influential economic organisation and gained the reputation of a bogeyman for the industrialised countries that it has never quite shaken off.
The group is famous for its production quotas, the locus of intense bargaining and controversy. Yet these only came into existence in 1982 as demand for Opec crude slumped under the strain of recession, alternative fuels, conservation and competing production – all inspired by the organisation’s excessively high price targets. Saudi Arabia gave up its role as swing producer in 1986 and has always avoided resuming that burden.
The oil crises also sowed the seeds of modern renewable energy, efficiency, and energy policy, while halting the post-war paradigm of environmentally unsustainable breakneck growth.
The long slump to 2003 was followed by a China-fuelled boom, the 2008-9 financial crisis, another boom, then the 2014 shale-inspired bust. These volatile times spawned Opec’s fourth incarnation in 2016, part of the wider Opec+ grouping with Russia and some other non-Opec producers, which has proved crucial in managing coronavirus’s epic demand destruction. The influence of formerly leading members Venezuela, Nigeria, Algeria, Libya, Indonesia and Iran has shrunk almost to nothing. The key decisions are all made between the Arabian Gulf and Moscow.
Yet other warning signs have been flashing for at least a decade. Battery vehicles threaten oil’s near-monopoly in ground transport, approaching economic competitiveness and ever more essential for the climate. Liquefied natural gas and then hydrogen for ships, biofuels and hydrogen for planes, will be next.
As I wrote on Opec’s fiftieth anniversary, “This fading of oil as the world’s premier energy source should have aroused more concern than it has in Caracas, Riyadh or Tehran. At this rate, they will leave billions of barrels in the ground at the end of the oil age.” The five founding members long ago succeeded in gaining control over their resources, but the economic situation of three is challenging, while Saudi Arabia and Kuwait face the dilemma of growth and diversification beyond their petroleum bounty.
So, the fifth version of Opec has to adapt. It needs to regain the market share lost to higher-cost producers in the shale era and then to Covid-19, while managing the return within its ranks of exports from Iran, and perhaps Venezuela and Libya. Will the Opec+ cooperation become a long-term feature of the market, and will Saudi Arabia seek to deter Russia’s higher-cost new fields? How will it manage the new volatility of oil prices and possible underinvestment while oil is unfashionable?
But an adaptable and enduring organisation can also find a new mission. Its members need help to make the tough transition of energy sources. Instead of being seen by some as an obstruction to world climate policy, it could be a constructive force for adapting oil exporters to a low-carbon world.
Robin M. Mills is CEO of Qamar Energy, and author of The Myth of the Oil Crisis
10 tips for entry-level job seekers
- Have an up-to-date, professional LinkedIn profile. If you don’t have a LinkedIn account, set one up today. Avoid poor-quality profile pictures with distracting backgrounds. Include a professional summary and begin to grow your network.
- Keep track of the job trends in your sector through the news. Apply for job alerts at your dream organisations and the types of jobs you want – LinkedIn uses AI to share similar relevant jobs based on your selections.
- Double check that you’ve highlighted relevant skills on your resume and LinkedIn profile.
- For most entry-level jobs, your resume will first be filtered by an applicant tracking system for keywords. Look closely at the description of the job you are applying for and mirror the language as much as possible (while being honest and accurate about your skills and experience).
- Keep your CV professional and in a simple format – make sure you tailor your cover letter and application to the company and role.
- Go online and look for details on job specifications for your target position. Make a list of skills required and set yourself some learning goals to tick off all the necessary skills one by one.
- Don’t be afraid to reach outside your immediate friends and family to other acquaintances and let them know you are looking for new opportunities.
- Make sure you’ve set your LinkedIn profile to signal that you are “open to opportunities”. Also be sure to use LinkedIn to search for people who are still actively hiring by searching for those that have the headline “I’m hiring” or “We’re hiring” in their profile.
- Prepare for online interviews using mock interview tools. Even before landing interviews, it can be useful to start practising.
- Be professional and patient. Always be professional with whoever you are interacting with throughout your search process, this will be remembered. You need to be patient, dedicated and not give up on your search. Candidates need to make sure they are following up appropriately for roles they have applied.
Arda Atalay, head of Mena private sector at LinkedIn Talent Solutions, Rudy Bier, managing partner of Kinetic Business Solutions and Ben Kinerman Daltrey, co-founder of KinFitz
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
Fixtures
Tuesday - 5.15pm: Team Lebanon v Alger Corsaires; 8.30pm: Abu Dhabi Storms v Pharaohs
Wednesday - 5.15pm: Pharaohs v Carthage Eagles; 8.30pm: Alger Corsaires v Abu Dhabi Storms
Thursday - 4.30pm: Team Lebanon v Pharaohs; 7.30pm: Abu Dhabi Storms v Carthage Eagles
Friday - 4.30pm: Pharaohs v Alger Corsaires; 7.30pm: Carthage Eagles v Team Lebanon
Saturday - 4.30pm: Carthage Eagles v Alger Corsaires; 7.30pm: Abu Dhabi Storms v Team Lebanon
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari
More from Rashmee Roshan Lall
Where to donate in the UAE
The Emirates Charity Portal
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The General Authority of Islamic Affairs & Endowments
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
Al Noor Special Needs Centre
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Emirates Airline Foundation
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
Emirates Red Crescent
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Noor Dubai Foundation
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Dr Afridi's warning signs of digital addiction
Spending an excessive amount of time on the phone.
Neglecting personal, social, or academic responsibilities.
Losing interest in other activities or hobbies that were once enjoyed.
Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.
Experiencing sleep disturbances or changes in sleep patterns.
What are the guidelines?
Under 18 months: Avoid screen time altogether, except for video chatting with family.
Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.
Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.
Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.
Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.
Source: American Paediatric Association
