Opec is facing the greatest challenge since its inception. The world needs to stop burning oil and limit global warming below 2C, along the lines of the Paris Agreement by nations on climate change. The general consensus is that oil use needs to shrink by as much as 80 per cent by the middle of the century if we are to meet the Paris goals. The impact of such a fall will be devastating for many oil producers.
Opec must help its members to navigate the treacherous waters of energy transition. The organisation should be promoting what two of its wealthy members, Saudi Arabia and the United Arab Emirates, are already doing — working hard on diversifying their economies.
Such a role for Opec is nothing new. The early political ideas of the late 1950s that led to creation of Opec in 1960 were not just based on the desire of oil producers to control their own natural resources. Economic co-operation, technical assistance and a unified approach to formulating energy policy were also very important, early aims of the organisation.