Abu Dhabi - Hamili On Oil Price Defence Level & Supplies To Asia.

Hamili, the UAE energy minister, now believes the average price of front-month WTI should be defended at more than $50/b by OPEC, so that the organisation can preserve the cash value of its basket price of 11 crude oils. This is in view of the steep fall in the value of the US dollar since 2002.

Addressing a regional oil consumers and producers conference in New Delhi on Jan. 6, 2004, Hamili said the UAE was ready to supply more oil to Asia. He forecast oil demand in Asia to rise 50% by 2010 and more than double by 2020, adding: "This Asian demand growth, if it materialises, will require reliable sources of oil supply. The Middle East, with its vast oil and gas resources, will continue to be a major supplier of energy to the world markets, particularly Asia".

The Supreme Petroleum Council: The SPC, in charge of the petroleum sector in Abu Dhabi, consists of key members of the ruling al-Nahyan family, representatives of the local Finance Department and the powerful Abu Dhabi Investment Authority (ADIA), and the CEO of Abu Dhabi National Oil Co. (ADNOC) who is the SPC secretary-general. It is still chaired by Shaikh Khalifa bin Zayed, Abu Dhabi's ruler and UAE president, whereas when Shaikh Zayed was alive this was headed by the crown prince and chairman the Executive Council who now is Shaikh Muhammad bin Zayed. (But Shaikh Zayed was not involved in detailed decision-making, though he retained final authority over important matters).

ADNOC initiates most of the decisions or projects, which must be approved by the SPC. ADNOC was restructured from October 1998 to mid-1999 (see Vol. 56, No. 4).

Decreed on June 5, 1988 by Shaikh Zayed, the SPC is also known as The Higher Council for Petroleum. Its creation was preceded by a restructuring of ADNOC aimed at making it more efficient. That involved abolition of the Petroleum Department (local oil ministry) and ADNOC's board of directors. By eliminating both bodies, Shaikh Khalifa and his close aides ended a long power struggle between Dr. Mana Sa'id al-Otaiba (till then heading the Petroleum Department), and Shaikh Tahnoun bin Muhammad, Shaikh Zayed's cousin and still the ruler's representative in the eastern province. The key SPC figures now are:

1. Shaikh Khalifa bin Zayed (see profile in Gas Market Trends).
2. Crown Prince and Executive Council Chairman Shaikh Muhammad Bin Zayed.
3. Shaikh Sultan bin Khalifa, the ruler's first son.
4. Finance Department Chairman Shaikh Muhammad bin Khalifa.
5. Economy & Planning Dept. Chairman Nasser Ahmad al-Suwaidi.
6. ADNOC CEO & SPC Secretary-General Yusuf bin Omeir bin Yusuf.
7. UAE Deputy Premier Shaikh Sultan bin Zayed.
8. ADNOC Deputy CEO and head of ADNOC E&P Abdullah bin Nasser al-Suwaidi.