In an exclusive SPIEGEL interview, OPEC Secretary-General Abdalla Salem el-Badri discussed – among other items – the failures of the multinational oil companies and the possibility of a caretel for natural gas.   His thoughts, noted below, are highly interesting:

“…SPIEGEL: (Russian) President Vladimir Putin certainly has other ideas. Last year he called the idea of a cartel for natural gas — the world’s second-most important natural resource, which is tied to the oil price — a “very interesting idea.” He has already begun promoting the concept in Iran, Qatar and Algeria. Are you concerned about this sort of a “counter-OPEC,” and do you think it has potential?

El-Badri: This sort of organization may be an option in the longterm, but the gas producers are tied to supply agreements, some for 30 years — it’s not like crude. But we at OPEC do not see this as a threat.

SPIEGEL: There has been a worldwide trend toward re-nationalization of energy reserves in recent years. While multinational companies like Exxon, Shell and BP controlled the market two decades ago, nowadays 77 percent of all oil reserves are in the hands of national and, in many cases, relatively inefficient oil companies in the production countries. Wouldn’t it be better if more private, and thus more transparent, companies dominated the market instead of these national dinosaurs?

El-Badri: The international oil companies are the real dinosaurs, not we at OPEC. The multinationals have changed their philosophy in recent years, but they still have a long way to go. They need to hire and train more local people. And they should invest more in the exploration of fields and in new technologies. They also have to be very gentle with the production profile of every country….”