“Gas OPEC” to Be Discussed again in June

As reported by Iran’s Shana news, gas-producing countries are planning to again discuss the idea of forming a “gas OPEC” along the lines of the existing oil organization in June in Moscow.  According to the article, members of the existing Gas Exporting Countries Forum (GECF) had appointed an expert to look at the idea of a gas OPEC at a meeting in Doha in 2007.  While most analysts say the structure and technical limitations of the gas market are not conducive to price fixing, we see this as a continued evolution away from Big Oil to The New Seven Sisters & other state-owned entities to manage the future hydrocarbon economy.  The report also notes:

“…a group of gas-exporting states led by Iran and Russia is moving towards creating a formal body similar to OPEC.

“…The main issue being discussed by the Gas Exporting Countries Forum is the transformation of an informal club that has no centralized organization… into a serious international organization of gas suppliers,” the paper said, AFP reported.

The paper noted that a draft charter of the organization, almost identical to that of OPEC, had been drawn up by Iran last year….

…Talk of an organization for gas gained momentum in 2006 when Europe”s two main natural gas suppliers, Gazprom of Russia and Algeria”s Sonatrach, signed a partnership accord….

…Founded in 2001, GECF is an informal organization grouping 15 countries. It includes Russia, Iran, Qatar, Venezuela and Algeria, which together control 72 pct of world gas reserves and 42 pct of production….”

This entry was posted on Monday, January 28th, 2008 at 9:56 am and is filed under Iran, Russia.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.