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OECD countries upstage OPEC in oil earnings

OPEC

OPEC

The Organisation for Economic Co-operation and Development (OECD) economies earned about $1.381 trillion yearly from 2010 to 2015,.

The Orgnaisation of Petroleum Exporting Countries (OPEC) disclosed this in its report titled: “Who Gets What from Imported Oil?)

According to OPEC, OECD earned more from retail sales of petroleum products than OPEC Countries made from oil revenues.

It disclosed that a significant amount of the final retail prices of petroleum products was attributed to high taxation rates.

“In fact, during 2015, the share of total tax of the final retail price amounted to more than 50 per cent. Therefore, the real burden on consumers comes from taxes, not from the original price paid for crude oil,” it added.

OPEC stated that between 2010 and 2015, OECD nations earned on average $1.076 trillion yearly from taxes alone compared to OPEC’s $944 billion yearly in oil revenues.

It noted that while the billions of dollars earned from oil taxes are pure income for OECD governments, oil export revenues of OPEC countries must also cover the high costs of exploration, production and transportation.

OPEC said that in a comparison of a composite barrel of oil between 2013 and 2015 in the OECD, crude oil prices plummeted by 34 per cent, while taxes increased by 12 per cent.

It hinted that the result is that producers lost revenue, while industry saw increased profits and consumer governments benefited from a boost in income generated from the increase in oil taxes.

OPEC noted: “So, the next time you hear that the price of a barrel of oil is having an impact on the price you pay at the pump, remember that oil-related taxes are imposed by many governments who ultimately are often the biggest beneficiaries”.

Meanwhile, Qatar’s Prime Minister, Sheikh Abdullah Bin Nasser Bin Khalifa Al-Thani met in Doha on Sunday with the Secretary General of the OPEC, Mohammad Sanusi Barkindo, and discussed the oil market and other related issues.

The meeting was also attended by Dr. Mohammed Bin Saleh Al-Sada, Qatar’s Minister of Energy and Industry and current OPEC Conference President.

Sheikh Abdullah congratulated Barkindo on his new position as OPEC Secretary General and reassured him of “the continued support of Qatar at all times to ensure his success.”

The Qatari Prime Minister expressed confidence that Barkindo would work closely with OPEC member countries to overcome the current challenges in the interest of all oil producers and consumers.

“The Doha initiative in February and April this year has provided both OPEC and non-OPEC oil producers a platform upon which a credible framework can be further developed to restore oil market stability,” Barkindo told Sheikh Abdullah.

Qatar invited OPEC and non-OPEC oil producers for a meeting that was held in Doha in April this year to discuss oil market developments.



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