OPEC Draft Warns of Oil Security Threat

At a closed-door meeting of foreign, finance and oil ministers, officials reiterated that an output decision is to be left to oil ministers when they meet Dec. 5 in Abu Dhabi.

A draft communique reviewed by Dow Jones Newswires after the ministers met is likely to be approved by Organization of Petroleum Exporting Countries heads of state during a meeting Saturday and Sunday. Those attending include Venezuela's President Hugo Chavez, King Abdullah of Saudi Arabia, and Iran's firebrand President Mahmoud Ahmadinejad.

Senior officials confirmed the contents of the draft communique, which suggests that legislation by consuming countries against the oil-producing cartel could harm future energy security, a possible reference to attempts by some in the U.S. to sue the group for cartel-like activity. It could also be a reference to energy-saving legislation.

The officials confirmed the draft's contents on condition of anonymity because the document had yet to be approved by heads of state.

"(We) reiterate that measures or legislation undermining the spirit of producer-consumer cooperation would jeopardize market stability and energy security," the document says, adding that it urges "consuming governments to adopt transparent, non-discriminatory and predictable trade, fiscal, environmental, and energy policies; and to promote free access to markets and financial resources."

The document makes no reference to the impact of the weak U.S. dollar, which Iran and Venezuela had pushed for in private.

The draft document stresses the role that carbon capture and storage technology can have in reducing the impact of fossil-fuel consumption, and says the group shares the world's rising concerns on climate change.

But in pursuit of controlling rising emissions, a balance has to be struck between the security of energy supply and the environment, the draft reads.

"We share the international community's concern that climate change is a long term challenge and recognize the interrelationships between addressing such concerns on the one hand, and ensuring secure and stable petroleum supplies to support global economic growth and development on the other."

But climate change measures should be "balanced and comprehensive, taking into account their impact on developing countries, including countries heavily dependent on the production and export of fossil fuels."

It says that oil producers seek a "steady, reasonable income" and "stable, competitive oil prices."

It also gives voice to the concerns among OPEC members about the impact financial speculators are having on oil prices and volatility, suggesting the group seeks "enhanced" financial market efficiencies that would cut short-term volatility.

It urges "all parties to find ways and means to enhance the efficiency of financial petroleum markets with the aim of reducing short term price volatility that is harmful to producers and consumers."