|
In the next 25 years, growing demand for energy – strongly driven by emerging economies such as China and India – is expected to increase by 60 percent and will amplify pressure on suppliers, who are often located in areas of political instability.
“Business is very concerned about how fluctuations in the energy market will affect its bottom line,” said BIAC Chairman Roy Ryu, chairman and CEO of Poongsan Corporation of South Korea. “This directly impacts companies’ thinking about how to position themselves in the global context.”
BIAC calls good governance the key to stabilizing the energy market and maintaining companies’ confidence. Governments must take a long-term view, support a consistent regulatory and governance framework, promote free markets and create a policy framework that encourages investment in the energy sector. Of equal importance are efforts by both governments and the private sector in the area of long-term energy research and development, BIAC believes.
To underpin the discussions, Mr. Mandil presented the main findings of the 2004 IEA World Energy Outlook. He said the oil market had become more "reasonable" following sharp price surges in October, but he said oil prices remain "quite expensive.”
OPEC producers "have worked hard in the last few months, and have done everything they could to ensure that prices become reasonable again," he said. "I hope they are going to continue."
In addition to supply and demand projections to 2030, the 2004 World Energy Outlook contains focus chapters on Russia and a detailed analysis of world oil and gas reserves.
Staff contact: Norine Kennedy
BIAC website
IEA website
More on USCIB’s Environment Committee
|
