Need of the hour is cooperation

Statistics point to an increase in dependence on oil and gas, which remain the two most important energy sources despite all the efforts and struggles to find alternative energy sources.

This has resulted in doubling oil prices, reaching record levels at $77 per barrel last week, which has led to calls for increasing the pressure on the Organisation of the Petroleum Exporting Countries to meet the increasing demand on its products in international markets.

These pressures on Opec countries have increased, coinciding with weather changes resulting in floods in Britain, the likes of which have not been witnessed in sixty years. They also coincided with droughts and an increase in the south east Europe's temperatures, leading to new pressures exerted on Opec by international environment organisations, to decrease the use of oil products, which participate in the negative affects of global warming.

In both cases, Opec was blamed for oil shortages, as it was blamed for global warming.

Difficult equation

A difficult equation, but it is a good expression of the contradicting economic interests between groups and big countries around the globe. While we see the US, Japan, India and Brazil striving to get cheap energy sources from oil exporting countries around the world, the 27 member European Unity member countries are working hard to decrease their dependence on hydro carbon energy sources, to maintain environmental balance and temperature around the globe to ward off additional environmental crisis.

As for Opec which is confusingly located between two clashing opinions, it is worthwhile to realise that this issue is an international one.

Opec has tried its very best to find a sort of balance in global oil markets. But these efforts are not enough, neither in providing the world with its oil needs or in decreasing global warming.

The reasons behind this are several. The oil production rate has reached its maximum level for Opec countries, any increase in production will need huge investments. These oil producing countries do not need additional revenues currently.

Opec has also offered important aid to many countries to develop alternative energy sources, especially for producing electricity from water falls in developing countries.

Nevertheless, the Opec countries have decided to increase oil output by half a million barrels daily in its upcoming September meeting. However, this increase will not solve any problems.

Opec countries efforts have to be balanced with similar efforts around the world.

China and India both striving to become major international economic powers in the coming three decades, are increasingly depending on Gulf oil. The two countries can pump in new investments in the industry of clean gas in the Middle East and Africa. The US can also change its technological methods in producing cars, depending on small economic cars which do not consume a lot of energy.

On the other hand, European countries which are are cutting back on energy are still lagging behind in pumping in investments.

The world seems to be close to an energy crisis if countries and economies do not cooperate to solve this situation. Opec alone cannot carry the burden of all the changes taking place in the international energy market. The reserves of most Opec member countries have started their count down, but we cannot hang all the responsibility on one part. Cooperation has to take place, to cut down the negative affects of this complicated issue.

- The writer is a UAE economic expert.