Identifier
Created
Classification
Origin
08VIENNA1783
2008-12-03 15:04:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Vienna
Cable title:  

OPEC LEADERSHIP PROPOSES CLOSER U.S. TIES

Tags:  ENRG EPET AU 
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VZCZCXRO7566
PP RUEHDE
DE RUEHVI #1783 3381504
ZNR UUUUU ZZH
P 031504Z DEC 08
FM AMEMBASSY VIENNA
TO RUEHC/SECSTATE WASHDC PRIORITY 1619
INFO RUEHHH/OPEC COLLECTIVE PRIORITY
UNCLAS VIENNA 001783 

CODEL
SENSITIVE
SIPDIS

FOR CODEL BENNETT (FOLLOW-UP)

E.O. 12958: N/A
TAGS: ENRG EPET AU
SUBJECT: OPEC LEADERSHIP PROPOSES CLOSER U.S. TIES

REF: FROATS-GALLOGLY EMAILS

Sensitive but Unclassified.

UNCLAS VIENNA 001783

CODEL
SENSITIVE
SIPDIS

FOR CODEL BENNETT (FOLLOW-UP)

E.O. 12958: N/A
TAGS: ENRG EPET AU
SUBJECT: OPEC LEADERSHIP PROPOSES CLOSER U.S. TIES

REF: FROATS-GALLOGLY EMAILS

Sensitive but Unclassified.


1. (SBU) SUMMARY: Codel Bennett (including Senators
Bennett, Cochran, and Voinovich) met November 14 with
OPEC Secretary General El-Badri, who expressed a strong
desire for closer ties with the U.S. along the lines of
OPEC's regular contact with Russia and the EU. El-Badri
complained that OPEC is a victim of perennial bad press
and misunderstanding in the U.S. He stressed that OPEC
wants stable oil prices rather than the recent pattern of
artificially high and volatile prices. According to
EU representatives here, it meets with OPEC annually
at the ministerial level and regularly at the working
level; those contacts form a central part of the EU's
long term energy security strategy. END SUMMARY.


2. (SBU) U.S. Senators Robert Bennett (R-UT),Thad
Cochran (R-MS) and George Voinovich (R-OH) visited OPEC
headquarters in Vienna November 14 for a meeting with
Secretary General Abdalla Salem El-Badri (from Libya) and
senior OPEC staff. El-Badri took full advantage of the
public relations angle, with a photographer and numerous
support staff on hand. He thanked the Senators for the
visit and lamented OPEC's irregular contact with U.S.
officials. OPEC has frequent discussions with Russia and
the European Commission, he noted, expressing hope that
the USG will consider improved engagement. The Codel
took the request on board (REF).


3. (SBU) El-Badri expressed frustration that the press
blame OPEC every time the oil price spikes, even when
OPEC had no part in price fluctuations. El-Badri asked,
"What can our organization say against the world's most
powerful country?" El-Badri assured the Senators that
despite media reports, OPEC members were in fact
discomfited by artificially inflated prices and by the
market's recent volatility. (NOTE: the meeting preceded
the most recent steep fall in spot prices). OPEC's
central goal is to ensure a regular and stable supply of
oil - a status quo that is good for both producers and
the world's consumers. Lack of understanding about these
goals makes OPEC a scapegoat for the West; El-Badri
hoped that improved relations with the U.S. would lead to
greater appreciation for OPEC's purpose and function.


4. (SBU) El-Badri declined to directly address the
Codel's question about steps OPEC could take to alleviate
the havoc wrought by fluctuating prices (for example, in
the airline industry). He also chose not to describe in
any detail the specific policies that inform OPEC's
decisions. Regarding the G-20 Meeting in Washington, El-
Badri claimed little knowledge of the details (Saudi
Arabia is the only OPEC member in the G-20),and joked
that OPEC had already done its part for economic stimulus
through lower oil prices.


5. (SBU) In follow-on poloff conversations, European
Commission representatives in Vienna said the EU enjoys a
high-level and even dynamic relationship with OPEC
through its local mission and the Directorate-General for
Transport and Energy. Since 2004, the EU has held annual
or biannual meetings with OPEC at the ministerial level
through the EU-OPEC Energy Dialogue. That Dialogue
explores a wide range of issues, including a recent
workshop on how financial markets affect the price of
oil. Enhanced contact with OPEC and other fora forms a
cornerstone of the EU's recently-released Energy Security
Action Plan (i.e., its long-term energy strategy).

NOTE
--------------


6. (U): OPEC headquarters in Vienna employ 142 staff,
three of whom are U.S. citizens working in public
relations and research. Its staff include highly
experienced oil industry specialists and energy
economists. OPEC is currently building a new
headquarters building in downtown Vienna, signaling a
long-term commitment to stay here. Post's ECON-POL
Section maintains intermittent staff-level contact with
the Secretariat; we understand that the Department
engages OPEC primarily through capitals and through
periodic Producer-Consumer Dialogue meetings.

GIRARD-DICARLO