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World energy crunch worsening

2002-05-03 09:52

Detroit - As the world's appetite for energy grows, the challenge for all nations will be ensuring that supplies of oil and gas, and the infrastructure needed to transport these fuels, remain stable and secure, US Energy Secretary Spencer Abraham said.

Addressing industry and government experts on Thursday, the first day of the two-day G-8 energy summit, Abraham also emphasised balancing the need for more supplies with the desire for a healthy environment.

With concerns about the security of energy supplies heightened by the September 11 terrorist attacks, industry and government experts from around the world agreed to pursue a global approach to these issues.

"We need also to prepare for the possibility of oil supply disruptions," Abraham said.

"On this, of course, international co-operation is fundamental to success," he added.

Co-operation - whether in protecting energy supplies, planning for increasing energy demand as the world's population swells or developing new technologies to improve energy efficiency - was an overarching theme of the meeting.

By 2020, world oil consumption is projected to increase by 60% to roughly 120 million barrels per day, Abraham said.

Abraham said "free trade and liberalised government policies for private investment will be essential to meet growing worldwide demand for energy."

The summit in Detroit is the first G-8 gathering to focus on energy since a Moscow meeting in 1998. Other countries participating are Russia, Britain, Germany, Japan, Italy and France.

- SAPA

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