Group of eight urges oil producers to stabilize oil prices

Rising oil prices may derail the world economy. Group of Eight (US, Britain, France, Germany, Italy, Canada, Japan, Russia, abbreviation G8 Energy Ministers meeting 24th in Rome, Italy, the conference called on oil producers to take measures to stabilize oil prices, that if oil prices continue to climb the world economy is likely to derail the recovery trajectory. The two-day meeting of the Group of eight energy ministers will focus on tackling climate change, enhancing world energy security and providing energy assistance to African countries.　　In addition to members of the Group of eight, energy officials from the European Commission and some developing countries in Asia, Latin America and Africa also attended the meeting. The organizers of the World Conference on energy security must be assured that the main purpose of the meeting is to propose a common strategy for tackling climate change. 　　Secondly, the meeting will discuss how to promote investment in the energy sector in the context of the current international economic and financial crisis in order to enhance world energy security and promote sustainable development. Oil and Mineral Resources Minister Ali Naimi, the world's largest oil producer, predicted the price would eventually rise to $75 a barrel.　　Shakib Halil, Algeria's Minister of Energy and Mining, said that if the economy recovers, oil prices will hit $70 a barrel by the end of 2010. U.S. Energy Secretary Steven Chu said: "If oil prices rise sharply, it may delay the pace of economic recovery." 　　"International oil prices have almost doubled since last December and are now back to more than $60 a barrel," he said. The meeting also discussed how to provide assistance to African countries in the area of energy, including by helping to expand the use of electricity in rural Africa and building large-scale transmission networks across the continent. The Meeting invited representatives of major energy companies from around the world to attend.　　The organizers also held an "Energy business forum" in addition to the formal meeting, where energy ministers discussed informal discussions with representatives of major global energy companies on measures to be taken to promote investment in the energy sector and on the role of enterprises in tackling climate change. The host Italian Industry Minister Claudio Scayola said the parties must safeguard world energy security, control the global climate change caused by energy production activities, and help those countries with real energy poverty.　　So the meeting will require countries to reach a consensus on energy policy to help the world through the financial crisis. 　　Long-term development of low oil price adverse industry Although the Group of eight, representing the interests of the major oil consumers, is concerned about the rise in oil prices, energy ministers also acknowledge that low oil prices are not good for industry investment and long-term development. Italian Industry Minister Claudio Scayola said: "Low oil prices in the economic crisis can help, but also curb investment and not guarantee the future stability of oil prices." 　　"He believes there is a need to ensure that oil prices are fair and stable, thus ensuring global economic growth and investment." Energy investment is falling sharply as a result of the recession, paving the way for a spike in oil prices over the next three years, the International Energy Agency said in a report released in May. The IEA estimates that this year's oil demandWill fall 3% to 83 million barrels a day, which will be the biggest drop in about 30 years. The IEA reported that global oil and gas production investment would fall by 21% in 2009 and renewable energy investment fell by as much as 38% per cent by the economic crisis. In recent months, oil companies and investors have canceled or postponed about $170 billion trillion in investment, equivalent to 2 million barrels a day of oil supply in the future. 　　Another 4.2 million barrels a month of future oil supply capacity has been postponed for at least 18 months as businesses cut spending. The report shows that, despite the global economic weakness, the current supply of crude oil remains plentiful, but once the global economy recovers, the risk of a rapid tightening of oil supply is increasing.　　Birol, chief economist of the IEA, said that by 2012, if current trends continued, the impact of a sharp reduction in oil investment and capacity could have serious consequences for a sharp rise in oil prices. The meeting of the Group of eight energy ministers will focus on issues such as tackling climate change and enhancing world energy security.