How Diezani Emerged First Female OPEC President

The Minister of Petroleum Resources, Mrs. Diezani Alison-Madueke has been elected as the first female President of the Organisation of the Petroleum Exporting Countries, OPEC, at the 166th meeting of the OPEC Conference in Vienna, Austria.

Her election comes as oil prices plunged further after the members of OPEC admitted that the cartel had lost its power to determine the price of crude oil in the world market.

Against popular expectation, the organisation rose from its crucial meeting in Vienna, Austria with the decision to leave its crude oil output unchanged at 30 million barrels per day.

The decision was taken mainly because of the awareness that non-member states, especially United States and Middle East nations now have the capacity to produce and export commercial crude oil to the world market.

Specifically, members of OPEC felt it would not make sense to effect a cut in its output as that would not impact positively on the global oil market.

Alison-Maduke takes over from Libya’s Vice-Prime Minister for Corporation, His Excellency Abdourhman Atahar Al- Ahirish, and her tenure takes effect from January 2015. Before her emergence, she was the Alternate President of the Organisation.

The Conference also elected His Excellency, Dr Mohammed Bin Saleh Al Sada, Minister of Energy and Industry of Qatar and Head of its delegation as Alternate President.

Speaking at the meeting, Alison-Madueke said the US Shale oil and gas had a lot of impact on all major oil and gas producing economies stressing that it is a major game changer for all stakeholders in the energy mix across the globe.

The Petroleum Minister noted that in the months ahead, OPEC would provide a veritable platform for member countries to find a remedy and deal with the issue frontally noting that there are no quick fixes to the sliding oil prices.

The newly elected OPEC President stated that the burden of falling oil prices is impacting on both OPEC and non OPEC member countries.

Alison-Madueke said that the current trend would make Nigeria to look very stringently again at the Petroleum Industry Bill, PIB, which is already before the National Assembly to ensure that the enablers therein are explored to make it more and more competitive in the global energy market.

On the plans by the Federal Government to prepare for the global fall, she said Nigeria has no recourse at this point in time other than to fully develop her gas infrastructure for domestic use.

The OPEC conference however confirmed the readiness of member countries to respond to developments which could have an adverse impact on the maintenance of an orderly and balanced oil market.

OPEC also directed its secretariat to step up its close monitoring of developments in supply and demand as well as non fundamental factors such as speculative activity and keeping member countries fully briefed on developments.

OPEC source, who preferred not to be named, stated in a telephone interview that the Alison-Madueke’s election was based on the confidence of the international community on Nigeria.

He stated, “Nigeria is a big player who deserves to be recognised and given increased responsibility in OPEC.”

“Moreover, past leaders, including Dr, Rilwanu Lukman, who served in that capacity did not disappoint OPEC member states,” he stated.

The minister, who is expected to work closely with the Secretary General would serve in that capacity for one year.

Specifically, she is expected to work towards the accomplishing the goals and objectives of OPEC, the intergovernmental Organisation that was created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela.

The five founding members were later joined by nine other members: Qatar (1961); Indonesia (1962) – suspended its membership from January 2009; Libya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) – suspended its membership from December 1992-October 2007; Angola (2007) and Gabon (1975–1994).

OPEC’s objective is to co-ordinate and unify petroleum policies among member countries, in order to secure fair and stable prices for petroleum producers; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on capital to those investing in the industry.

OPEC’s formation by five oil-producing developing countries in Baghdad in September 1960 occurred at a time of transition in the international economic and political landscape, with extensive decolonisation and the birth of many new independent states in the developing world.

The international oil market was dominated by the “Seven Sisters” multinational companies and was largely separate from that of the former Soviet Union and other centrally planned economies.

But OPEC developed its collective vision, set up its objectives and established its Secretariat, first in Geneva and then, in 1965, in Vienna.

It adopted a ‘Declaratory Statement of Petroleum Policy in Member Countries’ in 1968, which emphasised the inalienable right of all countries to exercise permanent sovereignty over their natural resources in the interest of their national development. Membership grew to 10 by 1969.

OPEC rose to international prominence during this decade, as its member countries took control of their domestic petroleum industries and acquired a major say in the pricing of crude oil on world markets.