Energy security should be universal: De Vasconcelos

Abu Dhabi: Energy security should be universal, benefiting rich and poor nations alike, the chief of the Organisation of Petroleum Exporting Countries (Opec) told a regional energy security conference on Monday.

"Energy security should apply to the entire supply chain and cover the foreseeable time-horizons as well as enabling all consumers to benefit from the most modern energy products," said Jose Maria Botelho de Vasconcelos, president of Opec.

Vasconcelos, who is also Minister of Petroleum of the Republic of Angola, said in his keynote speech at the Conference on Energy Security in the Gulf organised by the Emirates Centre for Strategic Studies and Research, energy security should apply to all energy sources "in a manner that is free from prejudicial regulatory and legislative measures."

He urged energy consumers to consider needs and concerns of the producers.

"Opec has repeatedly asked consumers governments to ensure transparency, predictability and consistency in their policy-making. We are committed to security of supply. However, what really concerns us in Opec is the other side of the coin, security of demand," the Opec chief said, stressing security of demand should be given the same weight as security of supply for consumers.

The six Gulf members account for 65 per cent of Opec's crude oil output and 60 per cent of its marketed production of natural gas.

The shares of proven reserves are slightly higher, at 72 and 79 per cent respectively.

The Gulf region possesses 57 per cent of the world's crude oil reserves and 40 per cent of its natural gas.

The Opec chief said projections put world oil demand to rise by 20 million barrels per day (bpd) to 106 million bpd between 2008 and 2030.

"But these are only projections, based on present trends. The reality may turn out to be very different in an uncertain world. And so every effort must be made to avoid adding to this uncertainty, because in the longer run adding to it will prove to be counterproductive."

The Opec chief said producers cannot afford to invest heavily in capacity that will not be used. "Neither producers nor consumers want excessive, volatile oil prices in the future. And this can best be avoided by making the right amount of investment today."

Vasconcelos said he was saddened by the recent calls by some influential parties in richer nations to reduce dependence on imported oil.

"We cannot see where this is leading to and what they hope to gain from such calls. One of the clear lessons from the global financial crisis is that the world economy performs best in a climate of interdependence among nations. This is especially true for the energy industry. Its infrastructure and trading patterns are well-established and global in nature. And the challenges facing it extends well beyond basic market economics. They also include universal issues affecting the advancement of mankind, such as the environment and sustainable development."

He stressed the challenges facing energy security "are too big to be handled at a national level. No country can afford to go it alone in the energy industry today. We should all recognise the true value of interdependence among nations and the comprehensive nature of energy security."