ID :
10922
Thu, 06/26/2008 - 15:39
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https://oananews.org//node/10922
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Energy minister reiterates producers' commitment to supply enough oil
Abu Dhabi, June 26 (WAM)- Energy Minister, Mohammed bin Dha'en Al
Hameli has reiterated the commitment of the UAE and other oil producing countries to supply enough oil at reasonable prices to contribute to the efforts to ensure global economic growth. Al Hameli made the statement in his address to the Asian Oil and Gas Show, which opens Wednesday here at the COEX Convention Centre.
"We are aware of the importance of reliable stable supplies at reasonable prices to growing economies in regions such as Asia. Producers and consumers are both in need of stability," Al Hamli said in his address.
He said the UAE and other OPEC countries had, over the past few years, invested heavily to ensure maximum production of oil reserve for use in case there was a hitch in production as a result of emergency circumstances. "We have invested heavily to ensure that there is sufficient spare capacity to replace the occasional unexpected cessation of supplies caused by the weather, geopolitical tensions or the occasional accident. That spare capacity exists but financial speculators many of whom have never seen an oil tanker or a refinery continue to drive prices up as they hedge against inflation, the weakening US Dollar and seek new opportunities for quick returns in commodity markets," he stated.
He said the holding of this event aims at trying to tackle the mad rise in oil prices as a result of increasing demand of the commodity in Asia and speculations on the international oil market. "Even as we struggle to tame the market and return sanity to oil prices, it is clear that hydrocarbons will undoubtedly remain a key element in the global energy mix for many years to come. However, we owe it to ourselves and to our children to minimise the waste of non-renewable energy resources," he said and expressed the hope that the current fluctuation on the market should come to a quick end.
Following is the full text of the minister's address:
"Ladies and Gentlemen "It's a pleasure to be here with you today. I would like to thank HE Lee Young Ho the Minster of knowledge Economy for inviting me to address this important gathering as well as the organisers who must have laboured long hours to bring this number of executives and experts of the oil industry under a single roof so efficiently. We meet at a critical time for the world energy industry. Oil prices have soared to historic highs fuelled by growing demand in Asia in addition to intense speculation in international financial markets.
Despite efforts by all parties to rein in runaway fuel prices the current turmoil in oil markets continue unabated. I sincerely hope this market volatility will soon dissipate. In spite of these unusual prices, the world's need for oil continues to grow. Global energy consumption is double the levels of the 1970's and is set to rise further in the coming decades. OPEC expects world energy demand to exceed 118 million barrels per day by 2030, from around 83 mbd in 2005.
"Oil producing countries such as my own are unequivocally committed to
provide uninterrupted sustainable oil supplies at affordable prices to help secure sustained economic growth. We are aware of the importance of reliable stable supplies at reasonable prices to growing economies in regions such as Asia. Producers and consumers are both in need of stability. In recent years, we have invested heavily to ensure that there is sufficient spare capacity to replace the occasional unexpected cessation of supplies caused by the weather, geopolitical tensions or the occasional accident. That spare
capacity exists but financial speculators many of whom have never seen an oil tanker or a refinery continue to drive prices up as they hedge against inflation, the weakening US Dollar and seek new opportunities for quick returns in commodity markets.
"Even as we struggle to tame the market and return sanity to oil prices, it is clear that hydrocarbons will undoubtedly remain a key element in the global energy mix for many years to come. However, we owe it to ourselves and to our children to minimise the waste of non-renewable energy resources.
"Fortunately, recent years have seen the efficiency of energy use increase substantially. This is true especially for oil in its most important sector
- transportation - where vehicle manufacturers, particularly in Asia, have used technological improvements to reduce fuel use. Currently, the world economy needs around 60 per cent of the energy it required in the seventies to generate US$1,000 of GDP. In the case of oil, this ratio has improved to less than half.
"Ladies and Gentlemen "As we face decades of continuing dependence on
hydrocarbons, oil producers will continue to invest as required in
maintaining and increasing production capacity. We value the commercial links that we have built up over the past decades with Asian buyers, relationships which over the years have strengthened into genuine friendships. These links are growing stronger; Middle Eastern investments in Asia are growing and the volume of trade is rising. Let us foster this special relationship which is mutually beneficial to both sides and work together to create a sustainable and prosperous future.
Hameli has reiterated the commitment of the UAE and other oil producing countries to supply enough oil at reasonable prices to contribute to the efforts to ensure global economic growth. Al Hameli made the statement in his address to the Asian Oil and Gas Show, which opens Wednesday here at the COEX Convention Centre.
"We are aware of the importance of reliable stable supplies at reasonable prices to growing economies in regions such as Asia. Producers and consumers are both in need of stability," Al Hamli said in his address.
He said the UAE and other OPEC countries had, over the past few years, invested heavily to ensure maximum production of oil reserve for use in case there was a hitch in production as a result of emergency circumstances. "We have invested heavily to ensure that there is sufficient spare capacity to replace the occasional unexpected cessation of supplies caused by the weather, geopolitical tensions or the occasional accident. That spare capacity exists but financial speculators many of whom have never seen an oil tanker or a refinery continue to drive prices up as they hedge against inflation, the weakening US Dollar and seek new opportunities for quick returns in commodity markets," he stated.
He said the holding of this event aims at trying to tackle the mad rise in oil prices as a result of increasing demand of the commodity in Asia and speculations on the international oil market. "Even as we struggle to tame the market and return sanity to oil prices, it is clear that hydrocarbons will undoubtedly remain a key element in the global energy mix for many years to come. However, we owe it to ourselves and to our children to minimise the waste of non-renewable energy resources," he said and expressed the hope that the current fluctuation on the market should come to a quick end.
Following is the full text of the minister's address:
"Ladies and Gentlemen "It's a pleasure to be here with you today. I would like to thank HE Lee Young Ho the Minster of knowledge Economy for inviting me to address this important gathering as well as the organisers who must have laboured long hours to bring this number of executives and experts of the oil industry under a single roof so efficiently. We meet at a critical time for the world energy industry. Oil prices have soared to historic highs fuelled by growing demand in Asia in addition to intense speculation in international financial markets.
Despite efforts by all parties to rein in runaway fuel prices the current turmoil in oil markets continue unabated. I sincerely hope this market volatility will soon dissipate. In spite of these unusual prices, the world's need for oil continues to grow. Global energy consumption is double the levels of the 1970's and is set to rise further in the coming decades. OPEC expects world energy demand to exceed 118 million barrels per day by 2030, from around 83 mbd in 2005.
"Oil producing countries such as my own are unequivocally committed to
provide uninterrupted sustainable oil supplies at affordable prices to help secure sustained economic growth. We are aware of the importance of reliable stable supplies at reasonable prices to growing economies in regions such as Asia. Producers and consumers are both in need of stability. In recent years, we have invested heavily to ensure that there is sufficient spare capacity to replace the occasional unexpected cessation of supplies caused by the weather, geopolitical tensions or the occasional accident. That spare
capacity exists but financial speculators many of whom have never seen an oil tanker or a refinery continue to drive prices up as they hedge against inflation, the weakening US Dollar and seek new opportunities for quick returns in commodity markets.
"Even as we struggle to tame the market and return sanity to oil prices, it is clear that hydrocarbons will undoubtedly remain a key element in the global energy mix for many years to come. However, we owe it to ourselves and to our children to minimise the waste of non-renewable energy resources.
"Fortunately, recent years have seen the efficiency of energy use increase substantially. This is true especially for oil in its most important sector
- transportation - where vehicle manufacturers, particularly in Asia, have used technological improvements to reduce fuel use. Currently, the world economy needs around 60 per cent of the energy it required in the seventies to generate US$1,000 of GDP. In the case of oil, this ratio has improved to less than half.
"Ladies and Gentlemen "As we face decades of continuing dependence on
hydrocarbons, oil producers will continue to invest as required in
maintaining and increasing production capacity. We value the commercial links that we have built up over the past decades with Asian buyers, relationships which over the years have strengthened into genuine friendships. These links are growing stronger; Middle Eastern investments in Asia are growing and the volume of trade is rising. Let us foster this special relationship which is mutually beneficial to both sides and work together to create a sustainable and prosperous future.
