SCO “Energy Club” is not OPEC clone

Fakhriddin Nizamov writes an interesting article for Russian news agency RIA Novosti on the role of the Shanghai Cooperation Organisation (SCO) in developing Asian energy markets.

Nizamov, a member of the RIA Novosti Expert Council, promotes the idea of forming an Asian Energy Club from the established SCO. “It is time to ensure energy and, consequently, economic and political security of the SCO members by establishing a special body,” he writes.

“Only then will it be possible to stand up to the [energy] market’s whims.”

The five SCO countries control 23% of the world’s oil, 55% of natural gas and 35% of coal, with a quarter of the world’s population. But, Nizamov says, the proposed club would not be a cartel in the style of Organization of the Petroleum Exporting Countries (OPEC).

“Many have rushed to describe the energy club as an OPEC analogue. But its format is unique. OPEC, for example, coordinates oil prices for 11 oil exporters, while the International Energy Agency (IEA) unites mainly oil consumers. The [SCO] energy club, however, will unite both producers (Russia, Kazakhstan, Uzbekistan) and consumers (China, Tajikistan, Kyrgyzstan),” writes Nizamov.

About James Ockenden (226 Articles)
A writer covering international energy and power markets since 1996
%d bloggers like this: