G8, Asian powers urge oil production hike
Eleven nations that guzzle nearly two-thirds of the world’s energy called on Sunday for an urgent hike in global oil production as host Japan warned the world could plunge into recession.
By Agencies |
AOMORI/JAPAN: Eleven nations that guzzle nearly two-thirds of the world���s energy called on Sunday for an urgent hike in global oil production as host Japan warned the world could plunge into recession. Energy ministers from the Group of Eight (G8) industrial powers met in the Aomori, Japan with officials from China, India and South Korea in the wake of a record spike in oil prices.
The 11 nations represented here voiced ���serious concerns��� over the level of oil prices and said there was an ���urgent need for increased and timely investment in the energy sector��� . In a joint statement, they called for boosts to their own production and asked major oil producers ���to increase investment to keep markets well supplied in response to rising world demand��� .
The countries also agreed to design a new framework ��� called the International Partnership for Energy Efficiency Cooperation (IPEEC) ��� under which they can share ideas about how to save energy. The meeting came after oil prices on Friday posted their highest-ever one-day gain of nearly $11, hitting a new record of $138.54 a barrel in New York trade.
���If we leave this situation as it is, it could lead to a recession of the world economy,��� said Japan���s energy minister Akira Amari. Oil prices have soared five-fold since 2003 due to a variety of factors including turbulence in the Middle East and rising demand in emerging economies such as China and India. In a nod that they were not pinning all the blame on oil producers , the 11 nations said that the oil market faced structural problems.
The European Union���s energy commissioner Andris Piebalgs said that major economies needed to come up with alternative energy. ���It is far better to make the right investments in clean, efficient energy technology and energy resources now and to reap the benefit later,��� he said.
Energy Minister Sergei Shmatko of Russia, the only major energy exporter at the talks, said: ���We want to maintain our position as a stable energy supplier.���
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The talks in Aomori were one of a series of meetings leading up to the G8 summit on July 7-9 , when climate change is expected to be a top issue. The joint statement called for all G8 countries to introduce ���carbon capture��� ��� containing emissions blamed for global warming at power plants rather than releasing them ��� by 2010. ��� Download
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