Riyadh Newspaper | The presentation of the Custodian of the Two Holy Mosques at the United Nations embodies the depth of the wise Saudi oil policy

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The Kingdom has presented qualitative initiatives to confront climate change and its negative effects

The presentation of the Custodian of the Two Holy Mosques at the United Nations embodies the depth of the wise Saudi oil policy

The Minister of Energy leads the meeting of the 20 energy ministers

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                <p>The global energy market, the Kingdom's historical stances for its stability and the recovery of the global economy, and the Kingdom's environmental initiatives to preserve the planet were of great importance in the unique royal presentation of the speech of the Kingdom of Saudi Arabia delivered by the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud - may God protect him - via video communication before the 76th session of the United Nations General Assembly in New York.  Where he showed - may God support him - the Kingdom's keenness to recover the global economy, which is reflected in the pioneering efforts it has made, in cooperation with its partners in the OPEC Plus alliance, and within the framework of the Group of Twenty, to confront the severe effects that resulted from the Corona pandemic, in order to enhance the stability of global oil markets and their balance and supplies, in a manner that preserves the interests of producers and consumers.

Here is a reference to a strategic base that the Kingdom has taken in its wise international petroleum policy and its struggle to restore market stability. From giant steps and endeavors and within 48 hours of extraordinary efforts that resulted in the largest international petroleum alliances and agreements in the history of the oil industry when he announced the largest joint international oil production reduction in the history of petroleum with a capacity of 10 million barrels per day, which astonished the world with this resounding success in the speed of To restore stability and balance to the markets.

In its endeavors to stabilize the markets, the Kingdom was not only satisfied with this role, but also took the initiative to mobilize the energy ministers of the Group of Twenty 20, headed by the Kingdom, to announce the world’s pause for the tragedies that exposed the global oil industry to collapse, against the background of the unprecedented repercussions of the Covid-19 pandemic on the global economy, including energy markets. Expressing their gratitude to the Kingdom “for its tireless efforts and distinguished leadership, appreciating the commitments and measures taken by producers, and what both producers and consumers have done to restore stability in energy markets,” and “reaffirming our commitment that we made at the extraordinary meeting of energy ministers of the Group of Twenty, which was held on April 10, 2020. , in order to ensure that the energy sector continues to make a full and effective contribution to the efforts to control the pandemic and support the global recovery thereafter.

They agreed by saying that we are aware that the current crisis, in addition to its direct health, economic and social repercussions, has contributed to the destabilization of global energy markets,” noting the enormous effects of the pandemic on the people and societies most vulnerable to it, which confirms the need to ensure that efforts to revive The energy sector leaves no one behind.

Most impactful consequences

The energy ministers of the Group of Twenty acknowledged the most influential repercussions on energy markets from the Corona crisis and led to the exacerbation of a global economic crisis in the worst year for oil and gas producers in modern history, while energy ministers cannot be sure of the extent of the repercussions caused by the pandemic, or the length of time that the economy will take. To recover from this crisis, or until the end of the crisis that is still affecting different parts of the world and affecting the movement of economic activity and global trade and investment rates. The royal speech stressed the importance of concerted efforts in order to confront the common challenge posed by climate change and its negative effects, explaining that, from this standpoint, the Kingdom has presented qualitative initiatives of interest to the region and the world, most notably the green Saudi initiatives, the green Middle East, and the circular carbon economy, which would Provide an effective and influential contribution to achieving international goals in this field.” Here, the G20 energy ministers “emphasize that the current challenges caused by the pandemic have not discouraged our resolve to strengthen our efforts, by studying a variety of options, and taking advantage of the broader set of technologies and types fuel, according to each national context with the aim of ensuring a stable and uninterrupted supply of energy, in order to achieve economic growth.” They also renewed “the commitments made by our leaders at the Osaka Summit in 2019, recognizing the importance of pioneering energy transformations aimed at achieving the four goals: energy security, economic efficiency, environment, and safety.”

Ministers will, on a voluntary basis, seize opportunities to enhance cooperation, collaboration, and partnership, including those included in the Accelerator Program for the Circular Carbon Economy, with support from relevant international organizations and other forums, such as the Clean Energy Ministerial Conference, the Center Energy Efficiency, International Energy Agency, International Energy Forum, International Renewable Energy Agency, Mission Innovation Initiative, Gas Exporting Countries Forum.

The ministers also pledged, before praising the Saudi energy system, led by the Minister of Energy, His Royal Highness Prince Abdulaziz bin Salman, a rich portfolio aimed at stabilizing the global economy, noting, “We continue our commitment to promoting public and private investments, innovative financing solutions from the public and private sectors, and enablers related to policies, And cooperation relationships that include multiple sectors. Taking into account different national and regional contexts, “we will seek to explore the many opportunities available, including those associated with the circular carbon economy platform, and existing G20 programs and initiatives, with the aim of promoting transformations to provide reliable and affordable energy for all.” At a time when it is clear that the primary goal of both OPEC and OPEC + is to restore stability in the market by helping to bring supply and demand to a form of balance in the market, and that one of the measures that has worked since 2016 is inventory levels, inventory and the average of the five Years. OPEC has been able to establish a correlation between these stock levels and prices. It is quantitatively clear that there is an inverse relationship between these two variables. Throughout the implementation of the Declaration of Cooperation, OPEC has witnessed every time inventory levels exceed the five-year average, prices head south and vice versa, and OPEC stresses, “We do not have a price target, we focus on equilibrium Supply and Demand, which will issue continuous investments in this industry to ensure the growth of future demand.”

The last emergency meeting of the 20 energy ministers supporting the OPEC + alliance

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