Renowned Oil Finance Expert, Professor Dr. M.R. Kumara Swamy Proposes Setting up the Organization of Natural Gas Producing Countries (ONGPC)

Abstract:     
In a recent statement, Professor Dr.M.R.Kumara Swamy, former Advising Oil Economist to Qatar Government and presently Director of Om Sai Ram Centre for Financial Management Research, Mumbai, India has said:

Inasmuch as the oil producing countries have the sole monopoly of oil production on one hand; and, on the other hand, the monopoly of technical collaboration lies with the western industrialized countries and that like an oil agreement entered into for exploration of oil between the producing countries and the operating multinational oil companies there is no agreement entered into whatsoever between them on the supply of natural gas from the oil producing countries to the natural gas consuming countries as no such need has been felt as of now.

To avoid all setbacks due to political risks enveloping the countries which may affect long gestation period high capital intensive natural gas based development projects undertaken in the developing countries, there is an urgent need for setting up the Organization of Natural Gas Producing Countries (ONGPC), whereby the ONGPC would assume the crucial role as price fixer rather than as price taker. This step which is of paramount and urgent importance would help strengthen the monopoly right of ONGPC over their precious and fast depleting natural endowment.

Keywords: ONGPC

JEL Classification: F21, N57

Accepted Paper Series