"OPEC's strategy is to maintain production levels"

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HE Abdullah Bin Hamad Al Attiyah speaks exclusively to Qatar Today about OPEC, oil production and Qatar's energy policy.

A few weeks before the Abdullah Bin Hamad Al Attiyah Awards, HE Abdullah bin Hamad Al Attiyah, President of the Qatar Administrative Control and Transparency Authority, speaks exclusively to Qatar Today on the role of OPEC and Iran sanctions and whether the lifting of sanctions will affect relations between OPEC countries and Iran. The Awards were conceived to celebrate the legacy of HE Al Attiyah by rewarding individuals for their achievements in advancing fields of work and policy that emulate Al Attiyah's 40 years of distinguished contribution to the global energy industry.

Having played a critical role in the international oil market for more than 50 years, OPEC today is faced with new competition and an imbalanced market - is OPEC beginning to lose its relevance?

OPEC remains a force for stability in world oil markets and intends to play an effective and positive role serving its member countries as well as producing countries, the oil industry and the global economy at large. In the new energy era of greater competition and new sources of oil being made available, OPEC's relevance will be different, however. OPEC will continue to seek to balance world oil markets and to lead a fruitful dialogue between producers and consumers. But, at the same time, OPEC has learned from history, in particular in the 1980s, when it sought to provide price support by cutting production but instead lost market share and still faced low prices. OPEC's strategy therefore is to maintain production levels and market share.

"The media hasn't always fully grasped that OPEC policies and decisions have to be seen within the context of member states' national interests and sovereignty."

With sanctions on Iran likely to be lifted later this year, are there any concerns that rising Iranian output may lead to rising internal dissent within OPEC?

Since the beginning of OPEC, there have always been some differences in opinion, but that is understandable, natural and, more importantly, healthy. When Iraq came back online and production reached 3.6 million barrels per day, which was said to be its historical level, everyone claimed that the oil price would go down and there would be discontent in OPEC. That did not happen, Iraq consumed its own oil, and the market remained stable for everybody.

As for Iran, first of all, it won't be able to boost production immediately and when it does, growing energy demand in Asia and other developing nations is expected to absorb the additional barrels.

What future policies should Qatar's energy industry pursue to remain competitive in the current changing market environment?

Qatar is committed to its National Vision 2030, which aims at creating a balance between an oil-based and a knowledge-based economy, and therefore seeks to build a sustainable economy for future generations.

Qatar's energy sector will play a critical role in supporting the National Vision by ensuring the responsible and sustainable exploitation of our hydrocarbon resources, and diversifying into other forms of energy such as renewables. As a responsible citizen of the world, this is something we are fully committed to. At the same time, we need to see the oil and gas sector step up its contributions in advanced technological innovations and the development of human resources in Qatar.

Will Asia remain Qatar's main gas export market going forward or should the country look at other markets as global competition intensifies?

Asia and Qatar have long enjoyed a progressive and mutually beneficial relationship, and this isn't going to change. With long-term energy demand in Asia set to rise, Qatar is well positioned to supply existing and new customers in the region going forward. That said, Qatar is always on the lookout for new opportunities, which it will evaluate if and when they come up. Qatar certainly has the scope and flexibility to expand its footprint to other parts of the world if it makes economic sense.

Qatar will continue to employ a flexible marketing position for its customers, but as a supplier will also keep in mind its limited gas reserves and the sale price will be set accordingly.

Would you say that Western media have accurately interpreted and portrayed OPEC's oil policies now and in the past?

By and large, Western media have been very capable of reporting on OPEC policies. However, the one thing I would say is that the media hasn't always fully grasped that OPEC policies and decisions have to be seen within the context of member states' national interests and sovereignty. This sits at the core of OPEC.

OPEC's current decision not to cut production, for example, isn't because OPEC countries have an ulterior motive, but because it is unwilling to act as the world's sole swing producer.

Is there a gap between media and OPEC interaction and, if so, what's the best way of overcoming it?
The gap between OPEC and the media can be overcome firstly by training the media present in the OPEC countries. HE Ali Naimi suggested special training workshops to help educate industry journalists to portray a straightforward picture of the oil market. Initiatives like this are very important. Secondly, media should try and understand that there is no grand design behind OPEC; the organization looks to interact with the journalists like all other energy producers. A more open dialogue should be encouraged from both sides, and more transparent reporting will help get the correct oil picture across.

Energy producers need to know what demand forecasts will be in order to be confident to invest, while consumers need to know that adequate supply is coming. With this in mind, what is the importance of the producer-consumer dialogue?

The dialogue is very important - producers need to know what demand forecasts will be in order to confidently invest, and consumers need to know if there is adequate supply and this balance is hard to achieve when dialogue is ineffective. At the moment, the market is out of balance, and as prices are falling and eroding investment, this means prices can spike again in the near future. Current market conditions have impressed the importance of dialogue even further. Market imbalance is largely due to a speculative market that has relied on emotions rather than facts. Investment will come through only if the investors are aware - hence the importance of training media and creating an open dialogue.

How can cooperation among countries along the South-South Corridor help create a successful platform for knowledge exchange among new talent in the energy industry?

Countries located along today's New Silk Road share many common goals and values. They all seek to build diversified, sustainable economies and to ensure the well-being and the creation of opportunities for their mostly young and growing populations. Today's young generation has a vital role to play in ensuring the sustainability of the energy industry in the future, even more so as a global talent shortage in the sector is increasing in the face of nearly half the world's experienced engineers set to retire in the coming years. This provides a significant opportunity for countries along the New Silk Road to deepen collaboration and knowledge exchange in the energy sector, including in areas such as renewable energies and energy efficiency, in order to develop a new generation of energy experts. Gulf countries, as major energy producers, have an important role to play in this.

A Lifetime of Achievement
In 1992, Al Attiyah was appointed Minister of Energy & Industry and Chairman and Managing Director of Qatar Petroleum, before being entrusted with the additional responsibility of Second Deputy Prime Minister in 2003. Four years later, he was elevated to Deputy Prime Minister, and in 2011 was appointed Chief of the Amiri Diwan.

Al Attiyah has also served as Chairman of Qatar's Planning Commission, and was elected as Chairman of the United Nations Commission on Sustainable Development in 2006.