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56633
Tue, 04/21/2009 - 15:04
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https://oananews.org//node/56633
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Oil industry needs new heavy investment to keep prices stable: Hameli
Abu Dhabi, April 21, 2009 (WAM) - A new round of heavy oil investments will be required if the world is to avoid another cycle of high oil prices, UAE Minister of Energy HE Mohammed bin Dhaen Al Hameli said yesterday.
“Such investments represent a major burden for resource-holders all of which have their own development agendas and competing calls for funds. That is why maintaining oil prices at reasonable levels is vital. Recent production cuts by OPEC have led to oil prices stabilising at around $50 a barrel, a level which will provide much-needed support to the global economy while allowing some room for investment, Al Hameli told an international energy conference in Dubai.
The UAE Minister told the 17th Annual Middle East Petroleum '&' Gas Conference (MPGC) that ''The world has enough oil resources to meet the rising demand for decades to come. Innovative technology and the development of non-conventional sources of energy will augment these resources. Similarly the demand for gas will continue to rise focusing the emphasis on bringing this energy to the market.
MPGC 2009 will bring together industry leaders, visionaries and decision makers to debate and discuss the theme, “Navigating through the Pitfalls: Demand Uncertainty, Financial Crises, and Price Volatility.' Key decisions makers, including senior management from national oil companies, the oil majors, trading groups and independents, policy makers and financial institutions, from over 40 countries are attending the MPGC this year.
On the international financial crisis, Al Hameli said: “Governments and financial institutions have been working hard to restore order to the global economy and I'm confident that once the storm is over we will have a more balanced and sustainable global economy. The G20 meeting in London earlier this month saw some breakthroughs in global dialogue, as it tried to tackle the biggest economic crisis since the Great Depression of the 1930s.
“We are now waiting to see how successful this meeting has been in restoring confidence to the world economy and its financial institutions,” he added.
“Looking beyond the crisis, the long-term outlook for the industry is bright.
The general consensus among analysts is that, once the dust has settled from the present crisis, world energy demand will start to grow. The heavy demand for fossil fuels will remain, with oil keeping its position as the predominant source of energy, while gas and renewables will continue to increase their share of the energy market.
OPEC believes world oil demand will continue rising by around a third, to reach a projected 113 million barrels a day by 2030. Ninety per cent of this growth will be in developing countries with transport sector accounting for more than half of this growth.
“Looking beyond the short term concerns of the current crisis, I believe the industry needs to continue working towards meeting the challenges of a more carbon-constrained world. This will add to the growing number of laws and regulations that are already affecting the energy sector across the world. A big step in this direction may be taken later this year, at the latest round of climate change negotiations in Copenhagen. Renewable energy, he indicated, will inevitably become an important part of the energy landscape. “The UAE firmly believes that this is a trend that hydrocarbon producers should embrace. A diversified energy mix is needed for a world that recognises the true value of energy,” he said.
In January, the world community agreed to create the International Renewable Energy Agency (IRENA). To date, more than 76 states have signed the Statute of the Agency, among them the UAE. IRENA aspires to become the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale. Member States will select the location of the new headquarters for the new agency. The UAE has recently submitted a proposal to host the headquarters in Masdar city, Abu Dhabi.
“Our commitment to the environment is not new. Adnoc was one of the first national oil companies in the region to cease the flaring of associated gas. More recently, the Masdar Initiative has put Abu Dhabi firmly at the centre of the world 'Green' map. I am confident that its role as a global leader in environmental best-practice will gain international recognition when international governments accept our proposal to host the IRENA secretariat,” he added.
Following is the full address of Al Hameli: Your Excellencies, ladies and gentlemen, There is always something special about being able to deliver an address to an international audience close to home, and so I am especially grateful to the organisers of the 17th Middle East Petroleum and Gas Conference for inviting me to do so in the United Arab Emirates.
As you all know, the UAE is very active in both the oil and gas sectors. In terms of proven reserves, it ranks sixth in the world for oil and fifth for natural gas; production wise, the figures are ninth for oil and 16th for marketed natural gas. This clearly underlines the potential of the country as a hydrocarbon producer well into the future.
The UAE's hydrocarbons are very accessible, relative to most other producing regions outside the Gulf, and a highly developed infrastructure is in place to get them to our customers in overseas markets.
In recent years, the UAE has invested heavily across the hydrocarbon value chain. In particular, it has sought to increase long term sustainable production capacity. These investments made at a time of growing demand, highlight the UAE's long term commitment to its customers.
The theme of this conference focuses on three important topical issues: demand uncertainty, financial crisis and price volatility. Individually, each issue can be described as being a serious area of concern in its own right. When viewed collectively, it becomes clear why the organisers used the expression "navigating through the pitfalls", when they set the theme of the event.
Today's conference provides an ample opportunity to discuss these issues against the backdrop of the current recession. Although these issues will be discussed at length throughout the length of this conference I would like to point out that they are closely linked. Therefore when recovery eventually comes, it is likely to be on a broad range of fronts. Governments and financial institutions have been working hard to restore order to the global economy and I'm confident that once the storm is over we will have a more balanced and sustainable global economy. The G20 meeting in London earlier this month saw some breakthroughs in global dialogue, as it tried to tackle the biggest economic crisis since the Great Depression of the 1930s. We are now waiting to see how successful this meeting has been in restoring confidence to the world economy and its financial institutions.
Looking beyond the crisis, the long-term outlook for the industry is bright.
The general consensus among analysts is that, once the dust has settled from the present crisis, world energy demand will start to grow. The heavy demand for fossil fuels will remain, with oil keeping its position as the predominant source of energy, while gas and renewables will continue to increase their share of the energy market.
When we look at demand uncertainty, there are two elements to consider. First, is the concern OPEC has been expressing about the impact of demand uncertainty on investment strategies for future production capacity. OPEC has identified three main reasons for this: consuming countries' energy policies advances in technology and world economic growth patterns.
However, the events of the past eight or nine months have added a dramatic new impetus to this, propelling demand uncertainty to a much higher, more critical level.
These realities were further exacerbated by the sense of shock felt throughout the oil industry, as well as the rapid pace of events since last summer that have not been expected. The hydrocarbon industry has had to adjust quickly to an emerging new, severe and threatening reality. This new reality has been characterised by heavy cutbacks in human and material resources, the scaling-down of investment plans, the near collapse of credit facilities and deepening levels of uncertainty about the future outlook.
Despite the passage of time that has allowed the industry to adjust to the new situation, the outlook remains uncertain and bleak. It still remains uncertain when the financial crisis will abate and the resonating hope within the industry is that it will end sooner rather than later.
OPEC believes world oil demand will continue rising by around a third, to reach a projected 113 million barrels a day by 2030. Ninety per cent of this growth will be in developing countries with transport sector accounting for more than half of this growth.
The world has enough oil resources to meet the rising demand for decades to come. Innovative technology and the development of non-conventional sources of energy will augment these resources. Similarly the demand for gas will continue to rise focusing the emphasis on bringing this energy to the market.
A new round of heavy investments will be required if we are to avoid another cycle of high oil prices. Such investments represent a major burden for resource-holders all of which have their own development agendas and competing calls for funds. That is why maintaining oil prices at reasonable levels is vital. Recent production cuts by OPEC have led to oil prices stabilising at around $50 a barrel, a level which will provide much-needed support to the global economy while allowing some room for investment.
Ladies and Gentlemen, Looking beyond the short term concerns of the current crisis, I believe the industry needs to continue working towards meeting the challenges of a more carbon-constrained world. This will add to the growing number of laws and regulations that are already affecting the energy sector across the world. A big step in this direction may be taken later this year, at the latest round of climate change negotiations in Copenhagen.
Renewable energy will inevitably become an important part of the energy landscape. The UAE firmly believes that this is a trend that hydrocarbon producers should embrace. A diversified energy mix is needed for a world that recognises the true value of energy.
In January, the world community agreed to create the International Renewable Energy Agency (IRENA). To date, more than 76 states have signed the Statute of the Agency, among them the UAE.
IRENA aspires to become the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale. Member States will select the location of the new headquarters for the new agency. The UAE has recently submitted a proposal to host the headquarters in Masdar city, Abu Dhabi. Our commitment to the environment is not new. Adnoc was one of the first national oil companies in the region to cease the flaring of associated gas.
More recently, the Masdar Initiative has put Abu Dhabi firmly at the centre of the world 'Green' map. I am confident that its role as a global leader in environmental best-practice will gain international recognition when international governments accept our proposal to host the IRENA secretariat.
“Such investments represent a major burden for resource-holders all of which have their own development agendas and competing calls for funds. That is why maintaining oil prices at reasonable levels is vital. Recent production cuts by OPEC have led to oil prices stabilising at around $50 a barrel, a level which will provide much-needed support to the global economy while allowing some room for investment, Al Hameli told an international energy conference in Dubai.
The UAE Minister told the 17th Annual Middle East Petroleum '&' Gas Conference (MPGC) that ''The world has enough oil resources to meet the rising demand for decades to come. Innovative technology and the development of non-conventional sources of energy will augment these resources. Similarly the demand for gas will continue to rise focusing the emphasis on bringing this energy to the market.
MPGC 2009 will bring together industry leaders, visionaries and decision makers to debate and discuss the theme, “Navigating through the Pitfalls: Demand Uncertainty, Financial Crises, and Price Volatility.' Key decisions makers, including senior management from national oil companies, the oil majors, trading groups and independents, policy makers and financial institutions, from over 40 countries are attending the MPGC this year.
On the international financial crisis, Al Hameli said: “Governments and financial institutions have been working hard to restore order to the global economy and I'm confident that once the storm is over we will have a more balanced and sustainable global economy. The G20 meeting in London earlier this month saw some breakthroughs in global dialogue, as it tried to tackle the biggest economic crisis since the Great Depression of the 1930s.
“We are now waiting to see how successful this meeting has been in restoring confidence to the world economy and its financial institutions,” he added.
“Looking beyond the crisis, the long-term outlook for the industry is bright.
The general consensus among analysts is that, once the dust has settled from the present crisis, world energy demand will start to grow. The heavy demand for fossil fuels will remain, with oil keeping its position as the predominant source of energy, while gas and renewables will continue to increase their share of the energy market.
OPEC believes world oil demand will continue rising by around a third, to reach a projected 113 million barrels a day by 2030. Ninety per cent of this growth will be in developing countries with transport sector accounting for more than half of this growth.
“Looking beyond the short term concerns of the current crisis, I believe the industry needs to continue working towards meeting the challenges of a more carbon-constrained world. This will add to the growing number of laws and regulations that are already affecting the energy sector across the world. A big step in this direction may be taken later this year, at the latest round of climate change negotiations in Copenhagen. Renewable energy, he indicated, will inevitably become an important part of the energy landscape. “The UAE firmly believes that this is a trend that hydrocarbon producers should embrace. A diversified energy mix is needed for a world that recognises the true value of energy,” he said.
In January, the world community agreed to create the International Renewable Energy Agency (IRENA). To date, more than 76 states have signed the Statute of the Agency, among them the UAE. IRENA aspires to become the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale. Member States will select the location of the new headquarters for the new agency. The UAE has recently submitted a proposal to host the headquarters in Masdar city, Abu Dhabi.
“Our commitment to the environment is not new. Adnoc was one of the first national oil companies in the region to cease the flaring of associated gas. More recently, the Masdar Initiative has put Abu Dhabi firmly at the centre of the world 'Green' map. I am confident that its role as a global leader in environmental best-practice will gain international recognition when international governments accept our proposal to host the IRENA secretariat,” he added.
Following is the full address of Al Hameli: Your Excellencies, ladies and gentlemen, There is always something special about being able to deliver an address to an international audience close to home, and so I am especially grateful to the organisers of the 17th Middle East Petroleum and Gas Conference for inviting me to do so in the United Arab Emirates.
As you all know, the UAE is very active in both the oil and gas sectors. In terms of proven reserves, it ranks sixth in the world for oil and fifth for natural gas; production wise, the figures are ninth for oil and 16th for marketed natural gas. This clearly underlines the potential of the country as a hydrocarbon producer well into the future.
The UAE's hydrocarbons are very accessible, relative to most other producing regions outside the Gulf, and a highly developed infrastructure is in place to get them to our customers in overseas markets.
In recent years, the UAE has invested heavily across the hydrocarbon value chain. In particular, it has sought to increase long term sustainable production capacity. These investments made at a time of growing demand, highlight the UAE's long term commitment to its customers.
The theme of this conference focuses on three important topical issues: demand uncertainty, financial crisis and price volatility. Individually, each issue can be described as being a serious area of concern in its own right. When viewed collectively, it becomes clear why the organisers used the expression "navigating through the pitfalls", when they set the theme of the event.
Today's conference provides an ample opportunity to discuss these issues against the backdrop of the current recession. Although these issues will be discussed at length throughout the length of this conference I would like to point out that they are closely linked. Therefore when recovery eventually comes, it is likely to be on a broad range of fronts. Governments and financial institutions have been working hard to restore order to the global economy and I'm confident that once the storm is over we will have a more balanced and sustainable global economy. The G20 meeting in London earlier this month saw some breakthroughs in global dialogue, as it tried to tackle the biggest economic crisis since the Great Depression of the 1930s. We are now waiting to see how successful this meeting has been in restoring confidence to the world economy and its financial institutions.
Looking beyond the crisis, the long-term outlook for the industry is bright.
The general consensus among analysts is that, once the dust has settled from the present crisis, world energy demand will start to grow. The heavy demand for fossil fuels will remain, with oil keeping its position as the predominant source of energy, while gas and renewables will continue to increase their share of the energy market.
When we look at demand uncertainty, there are two elements to consider. First, is the concern OPEC has been expressing about the impact of demand uncertainty on investment strategies for future production capacity. OPEC has identified three main reasons for this: consuming countries' energy policies advances in technology and world economic growth patterns.
However, the events of the past eight or nine months have added a dramatic new impetus to this, propelling demand uncertainty to a much higher, more critical level.
These realities were further exacerbated by the sense of shock felt throughout the oil industry, as well as the rapid pace of events since last summer that have not been expected. The hydrocarbon industry has had to adjust quickly to an emerging new, severe and threatening reality. This new reality has been characterised by heavy cutbacks in human and material resources, the scaling-down of investment plans, the near collapse of credit facilities and deepening levels of uncertainty about the future outlook.
Despite the passage of time that has allowed the industry to adjust to the new situation, the outlook remains uncertain and bleak. It still remains uncertain when the financial crisis will abate and the resonating hope within the industry is that it will end sooner rather than later.
OPEC believes world oil demand will continue rising by around a third, to reach a projected 113 million barrels a day by 2030. Ninety per cent of this growth will be in developing countries with transport sector accounting for more than half of this growth.
The world has enough oil resources to meet the rising demand for decades to come. Innovative technology and the development of non-conventional sources of energy will augment these resources. Similarly the demand for gas will continue to rise focusing the emphasis on bringing this energy to the market.
A new round of heavy investments will be required if we are to avoid another cycle of high oil prices. Such investments represent a major burden for resource-holders all of which have their own development agendas and competing calls for funds. That is why maintaining oil prices at reasonable levels is vital. Recent production cuts by OPEC have led to oil prices stabilising at around $50 a barrel, a level which will provide much-needed support to the global economy while allowing some room for investment.
Ladies and Gentlemen, Looking beyond the short term concerns of the current crisis, I believe the industry needs to continue working towards meeting the challenges of a more carbon-constrained world. This will add to the growing number of laws and regulations that are already affecting the energy sector across the world. A big step in this direction may be taken later this year, at the latest round of climate change negotiations in Copenhagen.
Renewable energy will inevitably become an important part of the energy landscape. The UAE firmly believes that this is a trend that hydrocarbon producers should embrace. A diversified energy mix is needed for a world that recognises the true value of energy.
In January, the world community agreed to create the International Renewable Energy Agency (IRENA). To date, more than 76 states have signed the Statute of the Agency, among them the UAE.
IRENA aspires to become the main driving force for promoting a rapid transition towards the widespread and sustainable use of renewable energy on a global scale. Member States will select the location of the new headquarters for the new agency. The UAE has recently submitted a proposal to host the headquarters in Masdar city, Abu Dhabi. Our commitment to the environment is not new. Adnoc was one of the first national oil companies in the region to cease the flaring of associated gas.
More recently, the Masdar Initiative has put Abu Dhabi firmly at the centre of the world 'Green' map. I am confident that its role as a global leader in environmental best-practice will gain international recognition when international governments accept our proposal to host the IRENA secretariat.
