OPEC from myth to reality.

In 1967, the U.N. General Assembly adopted Resolution 2158 (XXI), which specifically provided that international organizations, formed by developing countries to develop and market their resources, play a significant role in ensuring the right of permanent sovereignty over natural resources. (169) The U.N. General Assembly adopted in 1974 the Charter of Economic Rights and Duties of States. (170) That same year, the General Assembly adopted a declaration on the establishment of a New International Economic Order (171) which specifically called for producer associations, improved terms of trade and better incomes for developing countries. (172) The Stockholm Declaration (173) in 1972 and the Rio Declaration (174) in 1992 confirmed the sovereign right to exploit natural resources. Article 18 of the Energy Charter Treaty and article III-256 of the Constitution of Europe confirm the principle of energy sovereignty by providing each State's right to determine the conditions for exploiting its energy resources, choosing between different energy sources and determining the general structure of its energy supply. (175)

As late as 1914, states joining to seek international solutions to prevent war agreed in the Inter-Allied Declaration that the "'only true basis of enduring peace is the willing cooperation of free peoples in a world in which, relieved from the menace of aggression, all may enjoy economic and social security.'" (176) Those economic and social issues led to the creation of the United Nations Economic and Social Council (ECOSOC) in 1945. (177) The need for economic and social security was addressed again through the notion of a New International Economic Order, which some have criticized. (178) However, this concept highlighted the many injustices of the international system of economic relations. Under this approach, success of the industrialized countries would have been possible through the uninterrupted supply of cheap petroleum, which until 1970 was priced at $1.25 a barrel, at the expense of poor suppliers. (179) Injustice was created by unfair international trade practices. International commodity agreements were a tool to stabilize prices for the benefit of exporting developing countries. (180) Under this notion, industrialized countries would lack or have exhausted their own natural resources and would depend on resources of "third world," "undeveloped," or "developing" countries. This would strengthen the bargaining economic power of resource-exporting countries with OPEC members as natural and obligatory leaders of the Third World as the owners of a powerful tool to introduce a new economic order. (181)

The possibility that countries rich in hydrocarbon resources could choose to destroy their oil wealth to deprive western economies of a resource that would destabilize the world economy and the notion of mutual dependence may justify reexamining this concept both from its economic and political implications.

The idea of a New International Economic Order is still alive in the Millennium Declaration (182) and the Millennium Development Goals as the world deals with the many challenges of globalization. Equality ("[n]o individual and no nation must be denied the opportunity to benefit from development"), (183) solidarity ("[g]lobal challenges must be managed in a way that distributes the costs and burdens fairly in accordance with basic principles of equity and social justice"), (184) respect for nature ("management of [] natural resources, in accordance with the precepts of sustainable development"), (185) and shared responsibility ("[r]esponsibility for managing worldwide economic and social development, as well as threats to international peace and security, must be shared among the nations of the world and should be exercised multilaterally") (186) are some of the fundamental values considered essential to international relations.

The notions of "sovereignty" and "permanent sovereignty over national resources" are challenged by issues that are beyond control of state jurisdictions such as threats to global security like international terrorism, climate change, poverty, and immigration.

Whether cutting oil supplies is a valid extension of a state's right of permanent sovereignty over natural resources is a political issue worth thorough analysis. Is oil supply a purely commercial issue or are there state and international community public interests involved that may supersede private agreements? OPEC's Secretary General in 1968 referred to the petroleum producer countries international responsibility to supply oil to the world. (187) The answer to this question determines the very nature of OPEC as an organization and the terms and provisions that regulate petroleum investments and control over petroleum revenue, two of the issues in which the Organization should play a significant role.

Some authors have noted that when OPEC was formed Kuwait, one of its founding members, was not recognized as an independent state by the international community. (188) They add that when Qatar became an OPEC member in 1961, and Abu Dhabi in 1967, they were not independent members of the United Nations (189) and thus may have lacked the condition of "sovereign states." Remembering that the Swiss government did not consider OPEC a political international organization, but rather a group of commodity exporters, and denying it for that reason the recognition of international status and immunity benefits contributes to the analysis of OPEC's nature. (190) OPEC's charter lacks the characteristics of a modern international organization foundational document, although it clearly refers to the sovereign equality of its members. (191) Whether or not being a sovereign state was critical to OPEC membership became an issue when the OPEC Conference denied Iraq its right to attend the OPEC Conference while it was under the control of the Coalition forces. (192)

An analysis of the arbitrary divisions based on "citizenship" and the true meaning of "sovereignty" may be enhanced by appealing to the Islamic doctrine of the umma, or "community of the faithful," the umma is "one and indivisible," transcending Sunni-Schi'a divisions (193) and making the division into national states "absurd, false and evil." (194) Thus, from this perspective good actions are pursued for a broader community than the one arbitrarily limited by state border lines.

With many of its members sharing a history of international protectorate, with Iraq's present situation of being under "control" of foreign military forces, (195) a thorough analysis of "sovereignty" and its development over control and development of natural resources is certainly fascinating. The possibility of OPEC reaching beyond "sovereignty" to create a supranational organization that aims at benefiting peoples is particularly attractive. Certainly, some may prefer limiting OPEC's scope to a commodity group of traders. The analysis of this matter, however, is well beyond the limited scope of this document. Its very origins and history may well justify the recreation of a unique international organization that would overcome "sovereign formalities" to make a difference in international relations and set a standard for the 21st century.

Petroleum revenues for exporting countries have increased dramatically since OPEC's inception. (196) However, in many countries higher revenues are not reflected in better conditions for most of the population. (197) Again, this triggers questions of what sovereignty is all about. With globalization, the gap between rich and poor has widened. (198) The Millennium goals of solidarity--which include equity, social justice, and shared responsibility--justify revisiting these issues. Are these vain words void of any real meaning and impact? Are these voices of a "United Nations" system that no longer makes any sense? Or are they the new terms that still raise valid issues that must be addressed to maintain peace and security in the world?

The scarce nature of hydrocarbon resources and the sunset of the hydrocarbon age are inconsistent with the notion of "permanency." Awareness of depletion creates challenges that should include the analysis of the many hidden costs associated with oil production and determination of the "fair price" of a scarce resource. The price of such resource, among many other considerations, should promote conservation. (199) Energy security presents additional challenges to the concept of sovereignty. A supranational organization like OPEC may be the only mechanism that provides a credible voice to nations that otherwise lack any international weight, and the forum where many of these issues may be addressed to accomplish specific tangible results.

2. Environmental Obligations and Climate Change

The Energy White Paper in 2003 described the United Kingdom's energy policy, mentioning as its first challenge an environmental one because "[c]limate change is real" and levels of carbon dioxide in the atmosphere have risen by more than one third since the industrial revolution. (200) The paper declared reducing carbon dioxide emissions by 60% by 2050 as the first objective of the U.K.'s foreign policy. (201)