Wednesday, March 26, 1980
University Daily Kansan
7
International officials ponder energy issues
OPEC's unity questioned
By DON MUNDAY
Staff Renorter
Despite its image as an oil cartel, the Organization of Petroleum Exporting Countries is not always the well-oiled machine it was intended to be. an international oil specialist said yesterday. Yesterday in world affairs is undeniably heavy.
Reviewing OPEC's history and possible future at an energy forum in Nichols Hall, Charles Heller, a U.N. petroleum conference participant, said the organization requires unusual international cooperation.
"In the past 10 years, OPEC power has grown beyond anyone's expectations," Heller said. "We'll have to have the leadership to perhaps arrive at a compact energy system that will stabilize of energy supplies for both developed and non-developed countries."
HELLER SAID that OPEC was not united by many of the countries in the Arab embassy in 1972-4a, when Niger Venezuela continued to supply oil to the United States and other countries affected
"The Arab baitions are not all one entity," he said. "They are all peoples of different backgrounds, although they are all Islamic."
Heller said the fact that several non-Arab nations were members of OPEC was one factor that kept them from acting as one.
Heller, who negotiated for Trinidad and Tobago when it tried to join OPEC in the early 1970s, said OPEC was formed in September, 1980, when Venezuela and seven countries banded together and formed a petroleum cooperative organization.
HE SAID their initial declaration demanded that the members formulate a system that would ensure stabilization of oil prices and regulation of production. At a meeting of oil lowered to $1, the new group was not taken very seriously, he said.
"It wasn't even reported in the New York Times until two weeks afterwards," he said. "Now, when OPEC talks afterwards."
together, people start going frantic two weeks before the meeting."
OPEC's more recent actions can be seen as a response that recognized its nation's sovereignty over its own natural resources. Part of that resolution, he said, paved the way for OPEC to expand production.
Heller said that 1968 was a decisive year for OPEC, when member countries began reviving their existing agreements with the US and Russia, and group flexing its muscles was a 1970 Libyan action taken in retaliation for British withdrawal from parts of the Middle East,
HELLER SAID OPEC rose to its current power during a period of "famine" for oil. For the last 80 years, he said, the world has been deprived of oil and "famine" cycle in terms of oil supplies.
"There was the Oklahoma feast at the turn of the century," he said, "when they had so much oil they didn't know what to do about it. The first world war brought a change in the climate of America. It turned to famine during the war with the feast coming again around 1860."
If that trend continued, he said, the "famine" would be ending now with the world again headed toward a period of more plentiful oil supplies.
"The question is, is another feast about due?" he said. "Or is the cycle coincidental, making a future feast dependent upon an existing discovery of hydrocarbon deposits?"
Heller said he preferred not to speculate about the price of the current insurability impossible to tell how much of the current price of oil, between $30 to $40 a barrel, was due to inflation or OPEC spurred by prices.
An ominous trend, however, is indicated by the way in which many oil producing countries are expanding their capacities, which would give OPEC nations even greater control over the manufacture of world oil. By 1990, he said, the oil supply could no longer need for outside refineries.
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ALTHOUGH THE August U.N. meeting will not be the first time an international energy movement has been attempted, it could prove successful in making actual agreements, he said.
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The conference will attempt to identify energy sources that would be feasible within the next five or 10 years as well as those to be developed by the year 2000, be paid.
"The process should lead to a global warming in 1988 in Nairobi, Kenya and will help Baum said. "It should help distinguish between the myth and the reality of climate change."
In the meantime, the United Nations will still important programs for helping nations solve their energy problems, he said. The developing countries in particular
oil dependence, Baum said, has been given to industrial countries, yet many of them have not benefited from their energy from oil. The majority of third world countries, however, rely on oil for up to 70 percent of their GDP.
"Bear in mind the energy consumption in developing countries is still relatively low," he said. "But its growth in recent years has exceeded that of the industrial countries."
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The United Nations has sent teams of specialists into countries that have requested help in exploring their own natural resources, he said.
Mounting energy costs and shrinking supplies will soon begin to have an effect upon the world's food production, he said, and will hurt the developing countries the hardest.
energy emergency, both in this country and the entire world."
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Speaking at a Kansas Geological Survey energy forum in Nichols Hall, Baum said the United States was only one nation in which there is a revolution of the world energy situation.
"The problem of the '80s is twofold—energy and food. If we are responsible people, we must face these two simultaneously," he said.
By DON MUNDAY Staff Reporter
"There won't be any immediate results." Baum said, "but it should give us a realistic assessment of new and renewable sources of energy."
Vladimir Baum
A U.N. conference to be held later this year is expected to be the first step in a unified world effort to develop a global strategy, according to a U.N. energy expert.
U.N. world energy conference planned
Vladimir Baum, director of the United States Air Force Resources and Transport, said here yesterday Augusl special session of the General Assembly would concentrate on work done in the program.
"We're not facing an energy crisis anymore," he said. "The problem has telescoped and now we are facing a real
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