Declining oil prices should not deter investors, says UAE minister

Abu Dhabi: Mohammad Bin Dha'en Al Hamili, UAE Minister of Energy, on Monday urged the Middle East oil and gas producers to continue pumping funds into the industry despite the downturn of world oil prices.

"As you know, recent events in global financial markets have had a substantial impact on the oil industry. Oil prices have plummeted sharply to hover around $60 a barrel after the unbridled rise in July, 2008.
However, in spite of the present market conditions I would like to stress the importance of continued investment in the region's oil and gas industry," the minister said while addressing the inaugural session of the International Petroleum Exhibition and Conference (ADIPEC 2008) in Abu Dhabi on Monday.

"The challenges facing world economy today should not prevent us from continuing investments in the petroleum industry, but on the contrary it should serve as an impetus to prepare for the next cycle of growth," he said.

"The petroleum industry is characteristically a long-term investment industry where prices rise and fall in response to market forces, but one basic constant never changes: the continuously growing demand for energy in a world where population density is increasing.

"It is common knowledge that the age of easy oil is gone forever. Consequently we need to seize the opportunities offered by new technology to advance exploration techniques for new discoveries, increase recovery rates from existing fields, improve efficiency, and streamline our operations to reduce costs," he said.

Continued investment in modem technologies, he said, requires a highly-trained and experienced workforce capable of facing the challenges and able to acclimate themselves to these new technologies. New opportunities abound for nationals of the region to shoulder this responsibility.

"I would like to seize this opportunity to urge young men and women who think they are up to the challenge and possess the necessary qualifications to embark on a technical career in the hydrocarbons industry in order to reap the fruits of successful careers and contribute to sustainable development of their countries in a framework compatible with development and the protection of the environment and takes into consideration the needs of man," he said.