Sub-issues associated with the topic include:

1. Lack of market competition:

Deterrent:
The dominance of a few major oil producers discourages investment from new entrants. Major
oil companies have significant financial resources and established infrastructure, making it
difficult for new players to compete.

Additionally, these companies may lobby against policies that promote competition.

As abundant investigative reporting and academic studies have documented, the companies’ own
scientists were telling their executives in the 1970s that burning more oil and other fossil fuels
would overheat the planet. The companies responded by lying about the danger of their products,
blunting public awareness, and lobbying against government action. The result is today’s climate
emergency.

2. Geopolitical tensions and embargoes:

Strategic competition and political disputes between oil-producing nations can disrupt
supply and lead to embargoes. Geopolitical tensions can overshadow economic
considerations, making cooperation on energy issues difficult. The use of embargoes as a
political weapon further complicates the situation.

3. Environmental concerns and transition to renewable energy:

4. Transitioning to renewables requires significant investment, and the fossil fuel industry
has a vested interest in maintaining the status quo.
In the last decade, oil and gas companies matched or exceeded 31 million dollars in
federal government funding for university Industrial Research Chairs working on fossil
fuel projects, in addition to millions more for other research grants and donations.
Compare this to Industry Research Chairs for alternative energy projects that received
only $100,000 in the last 10 years.

Promoting Transparency and Fair-Trade Practices:

 A lack of standardized reporting and enforcement mechanisms makes it difficult to

monitor and prevent unfair trade practices. There's an absence of universally agreed-upon
rules and regulations regarding oil production and trade. This lack of transparency allows
for manipulation and unfair practices.

oligopolistic behavior;
.

Trends Perpetuating the Issue:

This lack of competition thrives under specific conditions. Geopolitical tensions often lead to oil
being used as a political tool, creating market volatility. The 1973 Arab Oil Embargo, a response
to Western support for Israel, demonstrated this power as OPEC members used oil as a political
weapon, triggering a global energy crisis. Addtionally such monopoly allows for price
manipulation resulting in nations experiencing political instability and struggle to maintain stable
oil production, leading to supply disruptions. Taking in example the case of Venezuela's ongoing
economic crisis further highlights the market's vulnerability – political instability can disrupt
production and exports, impacting global supply.

Past UN Actions

Paris Agreement on Climate Change (2015)

UNCTAD (UN Conference on Trade and Development) promotes competition policies in
developing countries.

Failed Price Regulation Attempts:

The UN Security Council has limited enforcement power, making embargoes a complex issue,
and hence many Security Council Resolutions on specific embargoes (e.g., Iran sanctions) have
proven to be ineffective.

 Idea: Establishing a global body to regulate oil prices.

 Why it Failed: Implementing a universally agreed-upon price control system is
incredibly difficult. Producer and consumer nations have conflicting interests, making it
challenging to reach consensus. Additionally, enforcing such a system would require
significant international cooperation and could lead to black market

COLOMBIA

Two internal policies or pieces of legislature implemented by Colombia relevant to the issue at
hand:

1. Hydrocarbons Law (Law 617 of 2000): This law regulates the exploration, production,
refining, transport, and distribution of hydrocarbons, including petroleum, in Colombia. It aims
to promote investment in the petroleum sector while ensuring environmental protection and
sustainable development.

Two programs Colombia has supported or been involved in at the international level:

1. Extractive Industries Transparency Initiative (EITI): Colombia has been an implementing

country of the EITI, which aims to promote transparency and accountability in the management
of revenues from extractive industries, including petroleum. Colombia's participation in the EITI
demonstrates its commitment to responsible natural resource governance and combating
corruption in the petroleum sector.

2. Global Gas Flaring Reduction Partnership (GGFR): Colombia has been involved in initiatives
such as GGFR, which seeks to reduce the flaring of associated gas during petroleum production.
By participating in GGFR, Colombia contributes to global efforts to mitigate greenhouse gas
emissions and promote sustainable energy practices in the petroleum industry.

International Renewable Energy Agency (IRENA): Colombia actively collaborates with

IRENA to share best practices and promote the development of renewable energy technologies.
This participation strengthens their efforts towards diversifying their energy mix.

Two resolutions Colombia has voted for or against:

1. In favor of resolutions promoting international cooperation in addressing climate change and

promoting renewable energy sources.

1. Resolution on Promoting Investment in Renewable Energy Sources (Supported):

Colombia likely supported this resolution as it aligns with their national policy of
diversifying energy sources and addressing climate change.
2. Resolution on Banning Oil Embargoes for Political Reasons (Possible Abstention):
Colombia might abstain on such a resolution. While they may see downsides to
embargoes, they might also recognize the potential value of this tool in specific
situations.

Trends among the things Colombia has supported or not supported:

Colombia tends to support initiatives promoting sustainable development, environmental

protection, and transparency in the petroleum industry, reflecting its commitment to responsible
resource management and international cooperation.

Colombia may oppose resolutions that threaten national sovereignty or impose punitive measures
on petroleum-producing countries, preferring diplomatic engagement and dialogue to address
geopolitical tensions and conflicts.

Objective analysis of Colombia's most important goals:

Colombia's primary goals likely include:

1. Economic development: Colombia seeks to maximize the economic benefits of its petroleum
resources while ensuring sustainable development and environmental protection.
2. Energy security: Ensuring a reliable and affordable energy supply, including petroleum and
alternative energy sources, is crucial for Colombia's economic growth and stability.
3. Regional stability: Colombia aims to promote peace, security, and cooperation in the Latin
American region, including addressing geopolitical tensions that may affect petroleum markets.
4. Environmental sustainability: Colombia is likely committed to reducing its environmental
footprint, including mitigating the environmental impacts of petroleum production and
promoting renewable energy sources.
 SOLUTIONS

Knowledge and technology:

 Promote international collaboration on these projects by fostering scientist and engineer

exchange programs between nations with established renewable energy expertise and
those seeking to develop their capabilities. This collaborative approach can accelerate
breakthroughs and knowledge sharing.

- Advocate for the establishment of a dedicated International Renewable Energy

Innovation Fund. This fund, overseen by the UN and supported by both developed and
developing nations, would provide substantial grants for research and development of
next-generation renewable energy technologies. These could include advanced biofuels
with minimal environmental impact, high-efficiency solar panels capable of generating
power in diverse lighting conditions, and long-duration energy storage solutions to
address the intermittency of solar and wind power.

Competition

- Shale Oil and Gas Development: Support the development of shale oil and gas
resources in various countries. This creates new sources of supply and reduces
reliance on traditional oil producers.

TRANSPARENCY

Inspired by the success of the Kimberley Process Certification Scheme (KPCS) in curbing
conflict diamonds, we propose the creation of the Global Sustainable Energy Transparency
Scheme (GSETS). This international initiative aims to promote transparency and responsible
practices throughout the global oil and gas supply chain, addressing the challenges posed by the
oil oligopoly.

Core Functions of GSETS:

 Chain of Custody Tracking: Similar to the KPCS, GSETS would establish a system for
tracking oil and gas from extraction to final consumption. This would involve mandatory
reporting by all actors in the supply chain, including oil-producing nations, national oil
companies, international energy companies, and refining and distribution companies.
 Sustainability Standards: GSETS would develop and implement a set of internationally
recognized sustainability standards for the oil and gas industry. These standards would
address issues like environmental impact assessments, greenhouse gas emissions
reduction targets, responsible waste management practices, and community engagement.
 Independent Verification: GSETS would rely on a network of independent auditors to
verify compliance with its standards. These auditors would conduct regular inspections of
oil and gas production facilities, transportation infrastructure, and refining operations.
  Certification and Labeling: Companies that meet GSETS standards would be awarded a
certification, allowing them to display a GSETS label on their products. This label would
signify to consumers that the oil and gas they purchase has been produced responsibly
and sustainably.

Multi-Stakeholder Body: A multi-stakeholder body could oversee GSETS, comprising

representatives from:

 Governments: Member countries with a significant stake in oil and gas production or
consumption.
 Industry: Representatives from major oil and gas companies.
 Civil Society Organizations (CSOs): NGOs with expertise in energy security,
transparency, and human rights.
 Consumer Groups: Representing the interests of consumers who ultimately bear the
impact of oil prices and practices.
 International Organizations: The UN, World Bank, and International Energy Agency
(IEA) could provide technical expertise and policy guidance.

Anti-Corruption Measures: Support international anti-corruption initiatives and

empower civil society organizations in developing countries to hold their governments
accountable for managing oil resources effectively.

1. Blockchain-powered Oil Trading Platform:

 Concept: Develop a secure, transparent oil trading platform utilizing blockchain

technology. This platform would allow smaller producers and independent buyers to
connect directly, bypassing traditional oil giants and potentially securing fairer prices.
 Benefits:
o Increased transparency in oil transactions
o Reduced dominance of major oil companies
o Potential for more competitive pricing for both producers and consumers

Embargoes:

- International Stockpiles: Creating international strategic petroleum reserves allows

member countries to tap into emergency supplies during embargoes. The International
Energy Agency (IEA) already has a stockpile program, but expanding participation
and capacity could be beneficial.
-  Tiered System: The UN could propose a tiered system of sanctions. Instead of a full-blown
embargo, countries could face escalating restrictions based on the severity of the offense. This
allows for a measured response and creates an incentive for positive change.

 Targeted Sanctions: Focus sanctions on specific individuals, entities, or sectors responsible

for the objectionable behavior. This limits the economic impact on the general population while
still applying pressure.
Embargoes could have built-in "sunset clauses" that automatically expire after a set
period unless specific benchmarks are met by the targeted country. This creates a clear
path for lifting sanctions and incentivizes cooperation.

Diversify Trade and Sustainaibility:

- Carbon Border Adjustments: Implement carbon border adjustments to level the

playing field for countries with ambitious climate policies and prevent carbon
leakage (industries shifting to countries with less stringent regulations)

- Launch a global "Know Your Energy Footprint" campaign led by the UN

Environment Programme (UNEP). This campaign would utilize educational resources
and interactive tools to educate consumers about the environmental and economic costs
of fossil fuel dependence. Consumers would be empowered to make informed choices
about their energy consumption habits and support companies committed to renewable
energy.

- Advocate for the creation of a standardized global energy labeling system. This system
would clearly communicate the environmental impact of different energy sources on
product packaging and utility bills. This transparency would allow consumers to choose
products and services aligned with their sustainability values.
- Push for the implementation of a robust international carbon pricing mechanism. This
mechanism could take the form of a carbon tax or a cap-and-trade system designed to
incentivize polluters, including major oil companies, to reduce greenhouse gas emissions.
Revenue generated from carbon pricing could be directed towards funding the transition
to renewable energy and assisting developing nations in adapting to climate change.

By leveraging the need for OPEC countries to diversify their economies as a means to
access funding from the IEDF, this proposal provides a mechanism to incentivize their
participation while addressing the immediate economic challenges faced by countries
affected by OPEC's market power. Through targeted investments in renewable energy
and sustainable development, supported by market liberalization measures, this
approach lays the foundation for a more equitable and resilient global energy system.

1. International Energy Diversification Fund (IEDF): Establish an international

fund, supported by contributions from both OPEC and non-OPEC countries, as
well as international organizations and private sector stakeholders.
2. Market Liberalization: As a condition for accessing funding from the IEDF, OPEC
countries would be required to take steps towards market liberalization, including
reducing barriers to entry, promoting competition, and ensuring transparency in
 oil markets. This would help level the playing field for oil-producing and
consuming countries, promoting economic stability and reducing the influence of
monopolistic practices.

Implement a structured program facilitated by international organizations where OPEC

countries commit to gradual market reforms, including reducing barriers to entry,
ensuring transparency in pricing mechanisms, and guaranteeing fair access to oil
markets for non-OPEC producers. In return, they receive access to advanced renewable
energy technologies and sustainable development practices.
STATS

Fossil carbon dioxide emissions in Colombia reached 1.74 metric tons per capita in 2022, up
from 1.67 tons per person a year earlier. During the period in consideration, Colombia's per
capita CO₂ emissions peaked at 1.76 metric tons in 2016. Colombia remains one of the countries
with the lowest fossil CO₂ emissions per capita in Latin America and the Caribbean.

crude oil production in Colombia is expected to decline by an average of 5.6% in the next three
years and reach more than 676,300 barrels of crude oil per day by 2023

Colombia’s leftwing government has announced that it will not approve any new oil and gas
exploration projects as it seeks to shift away from fossil fuels and toward a new sustainable
economy.

unique and historic breakthrough is happening in Colombia where local and international
experts, national government, and civil society are coming to the table to discuss Colombia’s
energy transition within 15 years. Given the global energy crises and the climate emergency,
Colombia's ambitious plans make it a global leader in energy transition.

Colombia is one of the largest global exporters of coal with Turkey, Chile and China being its
prominent buyers. It also exports oil and the United States is its key market. Colombia has its
first progressive government in history with a strong commitment to phase out fossil fuels
production in the next 15 years.

While mining production has increased by over 6% in 2019 due to a rise in gold outputs, coal
production has reduced following legal conflicts with local indigenous communities.
Colombia is using the EITI platform to support the government’s anti-corruption efforts, for
example by contributing to the development of the Economic Growth law, which introduced
regulations related to beneficial ownership disclosure in the extractive sector.

In 2019, EITI Colombia and GIZ prepared a practical guide and an explanatory video to raise
awareness on the 14 different types of environmental payments that extractives companies
must comply with. In 2018, companies paid a total of USD 2.9 million in environmental
payments and 88,500 hectares were replanted, according to EITI reporting.

In 2022, the EITI, with support from the Ford Foundation, launched a project titled "Engaging
communities in a just transition ". The project was a two-year initiative, with the objective of
understanding the effect of the energy transition on the livelihoods of communities near
extractive and energy projects, and the data necessary for them to understand those effects.
The project was implemented in four subnational areas in Colombia, Ghana and Indonesia.
a Just Transition and our allies welcome the decision of the Colombian government
to join the “Beyond Oil and Gas Alliance” (BOGA), an alliance of governments and
stakeholders working together to facilitate the managed phase-out of oil and gas
production. to transform the country into a “Global Power of Life.” The decision
aligns with the resistance movements against the predatory fossil fuel industry,
which have helped bring the government of Gustavo Petro to power. Therefore, we
welcome this new political step, and we hope that Colombia’s membership in this
alliance will mean opportunities to access greater technical and financial resources
to move away from fossil fuels dependence. As civil society, we stand ready to
support the government in the challenges this transition represents for Colombia
and the world.”

Currently, the country is producing, on average, 865 thousand barrels

per day (KBPD)4- or less than 1% of the global oil production. The
sector explains nearly 5% of the country's total GDP, and some
38.8%5 of its total exports.
 For 2022 alone, crude oil was responsible for earning 34%, or $18 billion, of Colombia’s
legitimate export income. The Petro administration simply cannot eschew the fiscal and
economic contribution of petroleum to Colombia’s economy and government budget.
 Colombia’s limited reserves will expire in less than 10 years.
Colombia’s proven oil reserves at the end of 2021 (Spanish) amounted to a mere
two billion barrels, significantly lower than its petroleum-producing
neighbors and only sufficient to support another 7.6 years of production.
 But there is a rising recognition that it is a crucial part of
climate action – even the relatively conservative
International Energy Agency (IEA) has said there must be
no new investment in new gas, oil or coal extraction
projects from now on if the world is to reach net zero
emissions by 2050.

Colombia is highly dependent on oil as an export and source
of tax revenue. The peso slumped 25 percent last year as
crude prices fell to their lowest in over a decade.
Colombia IGBC 9907.16 -0.33 15.91

In 2003 important changes in oil policy were introduced that led to an increase in exploration,
production, and reserves of oil and gas. Among those changes is the separation of state roles:
Ecopetrol assumed a role as an operator with greater autonomy and more ability to compete. The
new National Hydrocarbons Agency (Agencia Nacional de Hidrocarburos, ANH) became a resource
administrator.
For the implementation of this resolution, the National Hydrocarbons Agency
(ANH) published its rules for the delivery and reporting by companies of the
Natural Gas Leak Detection and Repair Program in 2022. This program will
offer opportunities for U.S. exporters of methane reduction technologies within
the hydrocarbon sector.

The National Hydrocarbons Agency will implement Blockchain technology to

guarantee a transparent and secure process that can be used in the different stages
of the Round

In 2003, the restructuring of the Colombian hydrocarbon sector was consolidated with the
creation of the National Hydrocarbon Agency – ANH, which gave way to a remarkable recovery
of the oil sector, positioning Colombia as a highly prospective and attractive country for national
and foreign investors.

They emphasized that oil is the leading export product, accounting for 55.4 percent of
total exports and being the main contributor to the state finances. Regions benefited
from fiscal resources by receiving royalties.

Questions

During the Azerbaijan and Armenian conflict, Azerbaijan had claimed that Armenian
forces in Nagorno-Karabakh have been shelling Ganja to disrupt the flow of oil and
gas.

Can you discuss any strategies or mechanisms your country is exploring to promote
circular economy principles within the petroleum industry,

How does your country plan to integrate environmental sustainability criteria into
procurement practices, investment decisions, and regulatory frameworks related to the
petroleum industry,

Can you discuss any collaborations between --- and international partners to address
environmental challenges associated with the petroleum market oligopoly,