UAE urges producer-consumer cooperation

The UAE on Monday called for stronger cooperation between oil producers and consumers to secure sufficient investments for output capacity expansions to meet demand and avert supply shortages in the future.

Minister of Energy Mohammed bin Dhaen Al-Hamli said massive funds are required for the oil sector, which is still the chief source of energy for the world, accounting for nearly 53 per cent of the total global energy mix in 2009.

“This underscores the need for huge investments in oil and gas research, exploration and production and for building new capacities that are capable of meeting demand for these two vital energy sources,” he told an oil conference at the Abu Dhabi-based Emirates Centre for Strategic Studies and Research.

“This in turn necessitates concerted efforts and stronger cooperation by the oil producing and consuming countries and with technology development firms.”

Hamli, whose OPEC country controls over nine per cent of the world’s proven oil deposits, said crude demand is projected to grow by around 1.13 per cent in 2010, driven by fiscal stimulus measures taken by key countries in the first half.

He said that despite the “uncertainty” in global growth at present, oil consumption has been growing, fuelled by the current recovery in many states.

“The recovery in some sectors, mainly the industrial sector, has had a positive effect on crude oil consumption in this sector in all countries,” he said in his address, read by Ministry of Energy undersecretary Nassir Al Sharhan.

Turning to renewable energy, his figures showed it accounts for only around 9-10 per cent of the primary energy sources in the world. He said heavy investments are needed to develop renewable energy resources.

“These resources should be developed as will have a vital role in p prolonging the life of fossil fuels on one hand and in preserving the environment and bracing for the post-oil era on the other hand,” the Minister said.

“As you know, oil and gas are currently key energy sources but they are delectable sources which must be preserved and fully exploited…there is no doubt that advanced technology can play a crucial role in prolonging our oil reserves and at the same time allow us to explore for new deposits.”

The Minister urged efforts to rationalize energy consumption and upgrade associated technology, adding that this would “contribute actively to improving life on our planet and conserve the oil wealth for our future generations.”