OPEC+ as a new governor in Global Energy Governance

Abstract

This article tries to evaluate the roots of the OPEC+ agreement, how it operates, and its prospects for the future. It argues that OPEC+ is a new governor in the Global Energy Governance (GEG) “regime complex”. It grew out of a convergence of the interests and capabilities of OPEC and non-OPEC exporters. The article shows that the emergence of OPEC+ is a consequence of over three decades of competition and occasional cooperation between exporters united in OPEC and those outside the organization. That cooperation was always a consequence of the price war and the demand of OPEC members for cooperation with non-OPEC exporters. Intensive consultations and three agreements on production cuts between both groups of countries in the years 2016-2019 made it possible to begin the institutionalization of cooperation among them. Cooperation within the OPEC+ agreement is non-formalized, based on government-to-government negotiations, and flexible. The signatories to the OPEC + agreement decided to avoid founding any formal IGO, and OPEC + continues to exist as a summit process.

Keywords

• opec
• global energy governance
• crude oil
• saudi arabia
• russia
• international cooperation