bin Ibrahim Al Naimi, the Minister of Petroleum and Mineral Resources
of the Kingdom of Saudi Arabia, was honored by the New York Exchange
Market. The role played by the Kingdom in maintaining the stability of
the world oil market and securing oil supplies and his own role in the
oil industry were also acknowledged at a party held by the New York
The party was attended by a number of
Congress Deputies, senior officials of the American Administration, a
number of companies' presidents and the Saudi ambassador to the United
Nations, Fawzi Shobokshi.
Joy Bariton, Congress Deputy for
Texas, stressed the close relations between the Kingdom and US in the
oil field, describing the Kingdom as playing a positive role in
securing oil supplies and the stability of the market in a way that
serves the world economy.
The chairman of the New York Exchange
Market indicated in his speech that the oil market is an international
field for the connection and interchange of the interests of producing
and consuming oil countries.
For his part, Al Naimi reviewed the
changes that had formed the oil industry into its current shape, the
establishment of the Organization of Petroleum Exporting Countries
(OPEC) in the 60s, and then the transfer of the control of oil
production, distribution and pricing from big companies to producing
The Minister indicated that the 70s
saw the beginning of dissociation between the producing and consuming
countries, when the producing countries began to practice their
natural rights in controlling their oil resources.
He added that the International
Atomic Energy Agency (IAEA) was established, as a reaction of the
consuming countries, to counter OPEC.
The Minister noted that the Iranian
revolution and the Iraq-Iran war had led to temporary decrease in oil
supplies which had became the main source of income not only to the
producing countries but also to the consuming ones as well, because of
taxes imposed by these countries on oil products to finance their
Al Naimi indicated that the war to
liberate Kuwait placed the Kingdom and all of the oil producing
countries under an obligation to maintain the stability of the market.
The Minister said that environmental
concerns posed a great challenge for the oil producing countries: - on
the one hand, to produce high quality petroleum products to meet
developing economies' need and on the other hand to curb the
environmentally harmful effects of these products.
The Minister talked about contracts
of future delivery known as Nymix light oil contracts and said they
were of no less importance than other developments that had occurred
during the last fifty years.
He said they provided two main
advantages: limiting risks and increasing transparency.
He stated that stable oil prices
providing fair returns were vital to the Kingdom's and the world's
The Minister said: “Our aim has
been always and still is to provide enough supplies to the market and
keep prices at the desired level which is US 25 dollars per barrel for
the OPEC price basket, equal to US 28 dollars for intermediate West
Texas crude”. The Minister also talked about the importance of price
transparency for oil producers, the Kingdom’s efforts to maintain
the stability of international oil markets and limit risks through
maintaining price stability.
The Minister stated that there is no
price system free of shortcomings. He said that the Kingdom was proud
of its outstanding record as a reliable oil supplier [that aims] to
secure balance and stability of oil prices. To this end, the Kingdom
retains additional production capacity in
order to overcome the great increases
in prices in the event of oil supply interruption, he said citing the
period after the invasion of Kuwait by Iraq.
Crude oil will remain the major fuel
for economic development during the foreseeable future, the Minister
added. He stressed the need for dialogue between the producers and
consumers to secure price stability.