University Daily Kansan
Wednesday, March 26,1980
7
International officials ponder energy issues
OPEC's unity questioned
By DON MUNDAY
Staff Reporter
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. Yet influence 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 company executive, said that "the organization requires unreal manual 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 gets stabilization of energy supplies for both countries and not developed countries."
HELLER SAID that OPEC was not united in its demands. The Arab oil embargo of 1974, when Nigeria and Venezuela continued to supply oil to the United States and other countries affected by it.
"The Arab baitions are not all one entity," he said. "They are all peoples of different backgrounds, although they are all Islamic."
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 several countries banded together and formed a petroleum cooperative organization.
Heller said the fact that several non-Arab nations were members of OPEC was one factor that lent them from acting as one.
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 time when some wanted the price of oil to be lower, the 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 about getting
together, people start going frantic two weeks before the meeting."
OPEC's more recent actions can be seen in a 1968 resolution that required every nation to own its own natural resources. Part of that resolution, he said, paved the way for OPEC to reduce oil production.
Heller said that 1958 was a decisive year for OPEC, when country members began revising their existing agreements with the United States, and group flexing its muscles was a 1970 Lilyhawk action taken in retaliation for British withdrawal from part of the Middle East.
HELLER SAI OPCE roc to its current power during a period of "famine" for oil. For the last 80 years, he said, the world has seen "a wave of famine 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 famine but in the 1900s the feast came. It is not surprising with the feast again around 1800."
If that trend continued, he said, the "famine" would be ending now with the world again headed toward a period of more plentiful oil sunlilies.
"The question is, is another feast about due?" he said. "Or is the cycle coincidental, making a future feast dependent upon an earlier discovery of hydrocarbon deposits?"
Heller said he preferred not to speculate about the value of $30 million imposed to tell how much of the current price of oil, between $30 to $40 a barrel, was due to inflation or OPEC actions spurred by it.
An ominous trend, however, is indicated by the way in which many oil producing countries have increased capacities, which would give OPEC nations even greater control over the manufacture of world oil. By 1990, he said, the oil industry may have no need for outside refineries.
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ALTHOUGH THE August U.N. meeting will not be the first time an international energy power has been attempted, it has proceeded in making actual agreements, he said.
oil dependence, Baum said, has been given to industrial countries, yet many of them lack the technology and energy their energy from oil. The majority of third-world countries, however, rely on oil for up to 70% of their electricity.
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"The process should lead to a global acceptance of the myth and help us assume exactly where we stand." Baum said. "It should help distinguish between the myth and the reality of the world."
energy emergency, both in this country and the entire world."
"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."
The United Nations has sent teams of specialists into countries that have requested help in exploring their own natural resources, he said.
The conference will attempt to identify energy sources that would be feasible within the next five or 10 years as well as those that could be developed by the year 2000, he said.
In the meantime, the United Nations will continue to work on less visible but still significant issues, and the UN nations solve their energy problems, he said. The developing countries in particular are at the forefront of this effort.
By DON MUNDAY Staff Reporter
Mounting energy costs and shrinking supplies will soon begin to have an effect upon the world's food production, he said. The country is developing the countries hardest.
Speaking at a Kansas Geological Survey energy forum in Nichols Hall, Baum said the United States was only one nation involved in a revolution of the world energy
"The problem of the '80s is twofold- energy and food. If we are responsible people, we must face these two simultaneously," he said.
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 energy strategy, according to a U.N. energy
U.N. world energy conference planned
"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
Vladimir Baum, director of the United National Center for Natural Resources and Climate Change, will present August special session of the General Assembly would concentrate on work done by the agency.
"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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