LUANDA, Angola, December 28 (Infosplusgabon) - Angola's election as the rotating presidency of the OPEC conference of ministers has propelled Minister Diamantino Pedro Azevedo, Minister of Mineral Resources, Petroleum and Gas at the forefront of efforts to stabilize global oil markets in 2021. HE Diamantino's takeover of the OPEC presidency could not have come at a more defining time for the Organization and the economy world in general.

This comes at a time when the world is hoping to turn the page away from a COVID-19 pandemic that has had a devastating effect on the global oil market and the global economy throughout 2020. Average brent oil prices for 2020 currently stand at around USD 49 per barrel, compared to USD 64 in 2019 and USD 71 in 2018. all OPEC members, especially those whose revenues are heavily dependent on the oil sector such as Angola. Despite COVID-19, multiple lockdowns and the resulting decline in economic activity around the world being primarily responsible for the significant decline in oil prices, the March 2020 Russian-Saudi Oil Price War has certainly also been a major source of market instability.

The task at OPEC to ensure that global oil markets stabilize in 2021 and lead to a recovery in world prices has therefore now fallen on the shoulders of Diamantino, which in recent years has built a reputation as a be an effective manager. "We are very confident that Minister Diamantino will use the same fervor he used to reform the Angolan oil sector, guiding OPEC towards the establishment of much needed stability in the global oil market," said Sergio Pugliese. , President of the African Energy Chamber in Angola. "Price and market stability is good for OPEC members, but also for Angola," Pugliese continued.

Although OPEC's daily oil production quota has fallen to less than 50% of global production in recent years, particularly due to the significant increase in shale production in the United States, the Organization continues to exert a major influence, with its OPEC + alliance. This is made up of the 13 members of OPEC and 10 of the world's leading non-oil exporting countries, who have come together for the sole purpose of ensuring market stability and maximum revenues for oil producing countries. .

Like many other OPEC oil producing countries, Angola's economic growth for 2020 will be negative. World Bank forecasts are currently less than 4%. It is therefore in the interest of Angola and Africa to give Minister Diamantino all the necessary support to ensure that oil markets stabilize and lead to a steady increase in prices in 2021. This will lead to a direct increase in government revenue and its ability to create much-needed jobs for Angolan youth.

Fifty years after its founding, OPEC continues to face challenges that hinder its effective functioning. The growth of unconventional oil production thanks to recent technological advances is one such challenge. In 2009, after a nearly 40-year decline in crude oil production in the United States, oil extraction from shale and sand helped boost production. New technologies have allowed US producers to exploit previously trapped oil at decreasing cost, leading the US to become the world's largest oil producer in recent years. A decade later, US production levels are nearly double. Increased oil production by non-OPEC members like the United States therefore reduces the ability of Angola and other OPEC members to push for higher oil prices. Pressure from Western groups for decarbonization and against the oil industry around the world under the guise of saving the planet is another such threat, which will require a coordinated response from oil producers. In the absence of OPEC and coordination among its members, countries like Angola are likely to suffer more from the dictates of the market.

You don't have to look far to see how the absence of an organization like OPEC has led to African coffee farmers being left at the mercy of global coffee markets. Angola, once a major coffee producer and exporter, with a total production of 230,000 tonnes, has seen its coffee industry all but disappear. Angola currently produces just over 8,000 tons of coffee per year. Given the importance of agriculture as a job creator, it would have helped Angola, if the coffee industry had had an organization like OPEC to protect its interests. The Angolan and African energy sector must support Minister Diamantino throughout his mandate, to ensure market stability in 2021. It is in Africa's interest and it is good for job creation in Angola.

As we reflect on these points, perhaps we should remind some dissenting voices of the old and wise African proverb: "If you want to go fast, go alone." If you want to go far, go together,” said the president of the African Energy Chamber in Angola.