Ministers of the thirteen member states of OPEC (the Organisation of Petroleum Exporting Countries) will meet in Abu Dhabi on Saturday (16 December) to fix the price of oil for next year.
GV 1976 OPEC conference in session, Qatar.
SVs Nigerian, Iranian Algerian and Libyan ministers.
GV Rome Street, ??? petrol sign at filling station, CUs Total, Exxon and Mobil sign. (4 SHOTS)
MV Big U.S. cat at filling station.
TGV Traffic leaving Houston, Texas on motorway.
UK CU British and U.S. flags on desk, PULL OUT TO GV bank officials at work, SV & GV officials at work. (3 SHOTS)
W. GERMANY CU Banker on telephone, CU hands at calculator. (2 SHOTS)
CU Prices marked on board, GV banker on telephone.
GV PAN Abadan refinery, MV gateway with name.
GVs Oil installations and pipelines. (3 SHOTS)
TRACKING SHOT PAST Oil storage tanks, Durban, South Africa.
CU Sign "BP" PULL BACK TO office building.
GV North Sea Oil rig, MV installations on rig, MV men working, TV rig. (4 SHOTS)
CU Men at wheel and checking drill. (2 SHOTS)
GVs Alaska pipeline, terminal at Valdez.
SV Ministers arriving for OPEC conference, Geneva.
SCU Saudi Arabia's Oil Minister Sheikh Yamani arriving.
SV Another minister arriving, speaking French.
CU Sheikh Yamani speaking in English.
SHEIKH YAMANI: "When it starts to group, if It's ???"
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Background: Ministers of the thirteen member states of OPEC (the Organisation of Petroleum Exporting Countries) will meet in Abu Dhabi on Saturday (16 December) to fix the price of oil for next year. The oil ministers are agreed that the price will go up; the only difference between them is: by bow much?
SYNOPSIS: The current price of 12.70 dollars (US) a barrel was fixed by the OPEC ministerial conference in Qatar two years ago -- but not without a struggle Most members agreed to an immediate ten percent rise, but Saudi Arabia did not come into line until six month later. Since July 1977, the price has been frozen.
A price rise, working through fuel for industry, heating and above all transport would and significantly be the cost of living in the importing countries. The United States, the worlds largest customer, would be most affected - though petrol is still cheap there by European standards.
The decline of the dollar is one of the main reason given by the oil producers for needing a price increase. Oil price are fixed in dollars. The falling value has cut the oil exporting countries' real income, at a time when inflation in the industrial countries has also ordered their spending power. There has been talk of ??? some mechanism for regulating oil prices against a "basket" of ??? of in terms of the dollar alone.
The troubles in Iran also likely affect the world oil prices. Abadan is the world's largest refinery, but output there had been cut by strikes to little more than half of normal. Even by mid-November, Iran's oil production had fallen 60 million barrels behind schedule. Danger of a glut was transformed into threat of a shortage. Rich countries like South Africa, have adequate stocks to cushion them - but poorer countries that depend on Iran are already beginning to feel the pinch.
The major international oil companies are not opposed to a price increase. They take the view that exploitation of new sources of oil - such as the North Sea operation -- can only be financed by substantially higher prices. The Chairman of British Petroleum has said the price will Petroleum has said the price will have to go up ??? percent over the next five years if there is not to be a major energy ???
The world, they ??? will need oil from inhospitable places, such as Alaska. And to get it in any quantity, it will have to pay the economic price.
At the coming meeting, Saudi Arabia, according to its Oil Minister, Sheikh Yamani, will not go against the majority, but is against substantial increase. For the future, the Sheikh is view was this: