To earn the maximum amount of points, I recommend responding in a 275-word response. You can use your own experience to reflect on how the articles relate to.
Describe the Strengths, Weaknesses, Opportunities, and Threats for OPEC. Prepare your response as a summary and include data uncovered from reading the textbook, articles, and personal experience.
OPEC’s Barkindo stresses importance of oil market stability and investment (Chapter 9)
Jan. 27, 2021 By Myra P. Saefong
The Organization of the Petroleum Exporting Countries and allies, together known as OPEC+, will continue to assess the oil market on a month to month basis and take necessary action to ensure stability in the market, OPEC Secretary General Mohammad Barkindo said on Wednesday. “We will continue to take a month by month approach to assessing market conditions and stand ready to take any necessary actions through the Declaration of Cooperation partners,” he said in prepared remarks to the S&P Global Platts Americas Petroleum and Energy Virtual Conference (Links to an external site.) on Wednesday, referring to the OPEC+ agreement to curb output. In his remarks, he stressed the importance of making sure that there will be enough energy to meet demand in the long term.
The world will continue to need more energy in the decades ahead, said Barkindo, pointing out that looking longer term to 2045, the global economy is expected to more than double in size. “The basic challenge is simple,” he said. “How can we ensure that there is enough energy supply to meet expected future energy growth, and how can this growth be achieved in a sustainable way — balancing the needs of people in relation to their social welfare, the economy and the environment?”
It’s “vital that the required investments are made in all energies to ensure stable and continuous supplies and to help reduce and, ultimately, eliminate emissions,” he said. At the same time, he also emphasized that “we do not deny the existence of climate change,” and the science and statistics say that the “we need to reduce emissions and use energy more efficiently.” “We do not deny the existence of climate change.” — Mohammad Barkindo, OPEC secretary general
Renewable energy sources are “coming of age, with wind and solar expanding quickly but even by 2045, are only estimated to make up just over 20% of the global energy mix,” he said. Oil and natural gas will still supply over 50% of the world’s energy needs by 2045, he added, with oil at around 27% and gas at 25%. On Wednesday (Links to an external site.), prices for both West Texas Intermediate crude CLH21, -0.34% (Links to an external site.), the U.S. benchmark, and Brent crude BRNH21, -0.43% (Links to an external site.), the global benchmark, stood close to the levels they traded at before the COVID-19 pandemic wreaked havoc on the global economy.
March WTI crude settled at $52.85 a barrel, up 24 cents, or 0.5%, while March Brent crude edged down by 10 cents, or 0.2%, to $55.81 a barrel. There are no reputable outlooks projecting that “renewables will come anywhere close to overtaking oil and gas in the decades ahead, said Barkindo. He also welcomed the Biden administration’s decision to rejoin the Paris climate agreement and said that “the energy transition and the global conversation around it would be incomplete without the United States at the head of the multilateral table.”
Meanwhile, the global economic recovery has been “fragile and uncertainties remain,” said Barkindo. Renewed lockdowns serve as a “harsh reminder of how delicate the situation remains. Nonetheless, we are cautious optimistic for the global economic rebound in 2021.” “More broadly, energy market stability will be vital to the energy transition
