Opec members are currently meeting at it’s headquarters in Vienna. This Opec summit will be the last meet with representation from the State as Doha had announced on Monday that it will pull out from the oil cartel with effective January 2019.
This decision bodes well with the strategy to focus on strengthening Qatar’s position as a reliable and trustworthy energy supplier across the globe. Qatar has already revealed its plan to develop and increase its natural gas production from 77 million tonnes per year to 110 million tonnes in the coming years.
While announcing the decision to pull out of the group, after 57 years, the Minister of State for Energy Affairs H E Saad bin Sherida Al Kaabi said that “it has become clear to us that achieving our ambitious strategy will undoubtedly require focused efforts, commitment, and dedication to maintain and strengthen Qatar’s position as the leading LNG producer.”
The decision was widely welcomed by analysts and international media as the oil cartel’s weaknesses and decision making process without much of a consultation process has made it lose its standing in the international market. Moreover, it needs outside support from non-Opec countries, to get its decision implemented.
Getting out the organisation doesn’t mean Qatar will get out of oil market or stop being active in it. In the contrary, as per the Minister, Qatar Petroleum plans to raise its production capability from 4.8 million barrels oil equivalent per day to 6.5 million barrels during the next decade.
Even though the size of the oil production in Qatar is not that significant, this decision will help Doha become more independent in its decision making regarding production and trading.
As Qatar’s former Prime Minister H E Sheikh Hamad bin Jassim Al Thani said it is a “wise decision,” as being in the group is not serving the purpose of the country nor helping the national interest. He went on to tweet that “this organization has become useless and adds nothing to us. They are used only for purposes that are detrimental to our national interest.”
Qatar has been working diligently for the last many years to expand and consolidate its leadership in natural gas sector. This decision will help the nation to focus more on this strategy and allow it to become top producer and exporter of a clean energy option in the world.
