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<title>28th Meeting Of The Ministerial Monitoring Sub-Committee</title>
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<div class=Section1>
<p class=MsoNormal style='text-align:justify;tab-stops:42.0pt 290.6pt'><b
style='mso-bidi-font-weight:normal'><span lang=EN-GB style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'>No.
9/2000<span style='mso-tab-count:1'>              </span>For immediate
release<o:p></o:p></span></b></p>
<p class=pagenumber style='text-align:justify;tab-stops:42.0pt 290.6pt'><b
style='mso-bidi-font-weight:normal'><span style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'>Vienna, Austria<span style='mso-tab-count:1'> 
</span><span style="mso-spacerun:
yes">      </span>10 September 2000<o:p></o:p></span></b></p>
<p class=MsoNormal style='text-align:justify;tab-stops:42.0pt'><b
style='mso-bidi-font-weight:normal'><span lang=EN-GB style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></b></p>
<p class=MsoNormal style='text-align:justify;tab-stops:42.0pt'><b
style='mso-bidi-font-weight:normal'><span lang=EN-GB style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></b></p>
<p class=MsoNormal style='text-align:justify;tab-stops:42.0pt'><b
style='mso-bidi-font-weight:normal'><span lang=EN-GB style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></b></p>
<p class=MsoNormal style='text-align:justify;tab-stops:42.0pt'><b
style='mso-bidi-font-weight:normal'><span lang=EN-GB style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></b></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>Opening Address<o:p></o:p></span></b></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><i style='mso-bidi-font-style:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>to the<o:p></o:p></span></i></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>111<sup>th</sup> Meeting of the OPEC Conference<o:p></o:p></span></b></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><i style='mso-bidi-font-style:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>by<o:p></o:p></span></i></p>
<p class=MsoBodyText align=center style='margin-right:1.35pt;text-align:center;
tab-stops:28.35pt 63.8pt'><span lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>His Excellency Ali Rodriguez Araque<o:p></o:p></span></b></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>President of the OPEC Conference<o:p></o:p></span></b></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><i style='mso-bidi-font-style:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>and<o:p></o:p></span></i></p>
<p class=MsoBodyText align=center style='margin-right:1.4pt;text-align:center;
line-height:150%;tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:12.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>Minister of Energy &amp; Mines of Venezuela<o:p></o:p></span></b></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'>Excellencies, ladies and gentlemen,<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>It is, once
again, a great honour for me to welcome you to the 111th Meeting
of the OPEC Conference, held at our Secretariat in Vienna.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>Let me begin
by extending a warm welcome to our new colleague from Indonesia,
HE Dr. Purnomo Yusgiantoro, who recently assumed office as Minister
of Energy and Mineral Resources. We look forward to benefitting
from HE Dr. Purnomo&#146;s contributions to our deliberations and
would ask him to convey to his predecessor, HE Lt.-Gen. Susilo Bambang
Yudhoyono, our warmest regards. <o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>It is also
my pleasure to again welcome to the Secretariat Delegations from
other important non-OPEC oil producers, namely Mexico, Oman and
Russia, and to extend congratulations to HE Alexander Gavrin, Russia&#146;s
newly appointed Minister of Energy.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>I am sure
that all of you are aware that we are today celebrating one of the
most important anniversaries of our Organization. It is exactly
40 years ago &#151; on 10 September 1960 &#151; that OPEC began
its first Meeting in Baghdad, Iraq. The principal purpose of that
Meeting embodied the very concept of cooperation with which we are
so familiar today. At that time, cooperation meant OPEC&#146;s five
Founder Members &#151; Iran, Iraq, Kuwait, Saudi Arabia and Venezuela
&#151; creating a united front, in order to defend their legitimate
interests in a petroleum industry dominated by the multinational
oil companies, more commonly known as <i
style='mso-bidi-font-style:normal'>&#147;The Seven Sisters&#148;</i>.<span
style="mso-spacerun: yes">  </span>That historic Meeting finished on 14 September,
with the formal establishment of OPEC.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>As the years
passed and its Membership grew, OPEC achieved an astonishing degree
of success for a group of developing countries. The Organization
provided these countries with the support and the confidence to
assert their legitimate rights in the petroleum industry, particularly
in terms of the exploitation of their indigenous resources, as well
as having an influential say in the pricing of their oil on world
markets. OPEC now has 11 Member Countries and is respected, far
and wide, as an established part of the international petroleum
community. This is, indeed, a grand achievement and one of which
we should all be proud.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>At the same
time, however, this provides no grounds for complacency. In just
over a fortnight&#146;s time, our Heads of State and Government
will meet for the Second OPEC Summit in Caracas, Venezuela. The
First Summit was held 25 years ago, in Algiers, Algeria. The purpose
of the Second Summit is to take a fresh look at OPEC&#146;s aims
and objectives, its institutions, its procedures and its achievements,
to see whether they match up to the evolving demands and requirements
of the 21st century. Where we find shortcomings, we shall seek to
rectify them, so that a stronger and more focused Organization emerges
for the years ahead. Naturally, we shall spend some time during
this Conference reviewing the final preparations for the Summit.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>Our attention
at this Conference will also be placed on more immediate matters,
particularly oil prices. The erratic price behaviour of the past
three years has been the cause of much concern for producers, consumers
and the industry. First, there was the crisis of 1998, when prices
for OPEC&#146;s spot Reference Basket fell heavily &#151; and even
briefly dipped below the psychological $10 per barrel mark &#151;
after averaging almost $18 per barrel in the ten-year period immediately
before this; that period was marked by a relatively high degree
of stability in the oil market. And secondly, after OPEC, with commendable
support from four non-OPEC producers, introduced measures which
boosted prices and took them to fair and reasonable levels, these
prices continued their upward movement, reaching levels which many
market analysts believe are not sustainable over a long period.
This was in spite of efforts by OPEC and responsible non-OPEC producers
to raise output, so as to create prices more acceptable to the market.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>In this brief
opening address, time prevents me from discussing the reasons for
this year&#146;s high prices. I should, however, like to make the
following remarks.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>First, it
is misleading to say that prices have trebled over the past 18 months;
it is a far more accurate reflection of the situation to say that
prices have risen to their present levels from a decade-long average
of almost $18 per barrel, as I mentioned above. They were at the
oft-quoted low point of around $10 per barrel for only a brief period
in December 1998, in exceptional market circumstances. On the other
hand, they were almost $25 per barrel in January 1997.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>Secondly,
while the prices of most consumer goods have risen significantly
over the past decade and a half, those of oil have not kept pace
with this trend and, indeed, on some occasions have actually fallen.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>Thirdly, at
least for much of this year and in the United States of America
in particular, there has been plenty of crude around when prices
have risen, and the supply problems have been further downstream
and beyond OPEC&#146;s influence.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>Fourthly,
as we publicly stated at our last meeting, the high levels of taxation
on petroleum products in most consuming countries are greatly amplifying
the effects of rises in the price of crude, to the detriment of
the consumer. OPEC expresses the hope, once again, that the governments
of these countries will reduce their high taxes on a barrel of oil
&#151; which is much more than producers themselves receive &#151;
in the interests of market stability. In addition, speculation in
the oil market has become a key factor that has distorted realities
and has artificially influenced prices far beyond what the fundamentals
indicate.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>And fifthly,
OPEC cares very much about sustainable order and stability in the
oil market, with fair and reasonable prices for consumers, and is
trying very hard to bring this about; but this is not easy in such
a complex and speculative environment as the petroleum industry.
OPEC is also appreciative of the active support it has received
in its recent market-stabilisation activities from some leading
non-OPEC producers, notably Mexico, Norway, Oman and Russia.<o:p></o:p></span></p>
<p class=MsoBodyText2><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><span
style='mso-tab-count:1'>            </span>Since our Extraordinary Meeting in
June, there has been a considerable amount of contact among producers
both within OPEC and beyond, as we jointly seek a lasting recipe
for market stability. His Excellency President Hugo Chavez of Venezuela,
as host of the Summit, has himself visited all the Member Countries
at Head of State level, in preparation for that important event.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>We are all
agreed on the need for timely and effective action in bringing an
end to the instability of the past three years, so that the international
oil market can prosper in the early 21st century, to the benefit
of producers and consumers alike, as well as the world economy at
large.<o:p></o:p></span></p>
<p class=MsoBodyText3 style='line-height:normal'><span style='font-size:11.0pt;
mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><span
style='mso-tab-count:1'>            </span>I began this address by referring to
OPEC&#146;s 40th anniversary. There is also another important event
we shall celebrate this year &#151; this is the 35th anniversary
of OPEC setting up its Secretariat in the Austrian capital of Vienna.
Since 1965, we have enjoyed excellent relations and friendship with
the Federal Republic of Austria, the City of Vienna and the citizens
of our host country. I should, therefore, like to express the gratitude
of OPEC and its 11 Member Countries for everything our hosts have
done over the years to enhance this relationship and to make us
feel so welcome, and to say: &#147;Long may this prosper in the
future!&#148;.<o:p></o:p></span></p>
<p class=MsoNormal style='text-align:justify;tab-stops:0pt'><span lang=EN-GB
style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;mso-bidi-font-family:
"Times New Roman"'><span style='mso-tab-count:1'>            </span>This evening,
the City of Vienna is hosting a grand reception and dinner, at which
more than 600 invited guests are expected, to mark OPEC&#146;s 40th
anniversary and the Secretariat&#146;s 35th year in Vienna.<o:p></o:p></span></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
35.45pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:10.0pt;
font-family:Arial;mso-bidi-font-family:"Times New Roman"'><span
style='mso-tab-count:1'>            </span>Thank you.<o:p></o:p></span></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><span
style='mso-tab-count:1'>          </span><o:p></o:p></span></p>
<p class=MsoBodyText align=center style='margin-right:1.35pt;text-align:center;
tab-stops:28.35pt 63.8pt'><b style='mso-bidi-font-weight:normal'><span
lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:10.0pt;font-family:Arial;
mso-bidi-font-family:"Times New Roman"'>*<span style="mso-spacerun: yes">    
</span>*<span style="mso-spacerun: yes">     </span>*<o:p></o:p></span></b></p>
<p class=MsoBodyText style='margin-right:1.35pt;text-align:justify;tab-stops:
28.35pt 63.8pt'><span lang=EN-GB style='font-size:11.0pt;mso-bidi-font-size:
10.0pt;font-family:Arial;mso-bidi-font-family:"Times New Roman"'><![if !supportEmptyParas]>&nbsp;<![endif]><o:p></o:p></span></p>
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<dd>
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<blockquote>
<blockquote>
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