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Oil, Gas Base for World Energy in 21st Century - G8 Energy Ministers

Posted on: Thursday, 16 March 2006, 21:00 CST

MOSCOW. March 16 (Interfax) - G8 energy ministers believe that oil and gas will remain the base for the world energy in the 21st century, a release published by the press center of the Russian Industry and Energy Ministry on Thursday says.

"The ministers realize that in the 21st century significant growth in world energy consumption is unavoidable, particularly in dynamically developing economies. Despite the inclusion of new energy sources in the energy balance, for at least the first half of the 21st century fossil fuel will continue to be the backbone of world energy companies," the document said.

"The ministers believe that reliable energy supplies play a key role in the development of the world economy, and the prosperity, way and quality of life of people directly depends on access to energy," the statement said.

"The ministers discussed the challenges of world energy security, the problems of stimulating market effectiveness in the fuel and energy complex, and increasing the stability of the world energy system. We note that responding to the challenges of energy security will require using market approaches, aimed at increasing supply volumes and restraining growth in demand for fuel, while at the same time aiding the development of market mechanisms of price formation, competition, energy efficiency and energy conservation," the document said.

The ministers noted the importance of further developing and deepening dialogue between producing countries, transit countries and energy resource consuming countries, including an exchange of information on current conditions and also plans and programs for the development of energy sectors in the mid-term and long-term future," the statement said.

"The ministers confirm their support for the corresponding international initiatives, such as the Joint Oil Data Initiative, aimed at increasing the accessibility and transparency of information on reserves, supply and demand, and resources and production capacities," the statement said.

"We acknowledge that to have a stable future the world fuel and energy complex needs significant capital investment in production, transportation and refining of energy resources. Countries need to ensure growth in investment in their energy sectors by improving their investment climate, including stable and predictable regulation, clear tax legislation and effective administration procedures and also fair and mutual access to markets for all production processes involving energy resources," the G8 ministers said.

"The ministers supported the need to implement a plan of action approved by the leaders of our countries in Gleneagles last year, which contains a wide range of measures aimed at encouraging innovative activity increasing energy efficiency and strengthening protection of the environment," the document said.

"The ministers realize that diversifying the portfolio of energy resources in terms of fuels, suppliers and consumers, and also in terms of ways to supply them, will help reduce risks connected with ensuring energy security, not only for individual countries, but for the international community as a whole. Joint efforts by G8 countries and other states to more widely use renewable and alternative energy sources, to develop and implement innovative energy technology and to develop low-carbon energy will contribute significantly to achieving this task. Of special significance for long-term and ecologically supportable diversification of energy supply will be the wide-scale development of safe and reliable atomic energy in those countries that wish to use it," the statement said.

"The ministers believe that continuing cooperation for the development of low-carbon technologies of the future will be of key significance. Assisting the development and introduction of innovative solutions in energy technology will bring long-term advantages from the point of view of ecology, economics and energy security, and will be key for a stable global energy future," the statement said.

"The ministers agree that an important aspect of ensuring global energy security is a radical reduction in the gap in levels of energy supplies in developed and energy-poor underdeveloped countries," the statement said.

Source: Daily News Bulletin; Moscow - English

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