O'Brien: world faces shared energy problem

20/03/2009

Oil-rich nations will need to work with net petroleum consumer countries in order to ensure that oil and gas prices are fair and affordable throughout the crisis, UK energy and climate change minister Mike O'Brien has told the world's energy producers.

Speaking at an international energy summit hosted by the Organisation of the Petroleum Exporting Countries (Opec) yesterday (March 19th), the minister warned that ramping up prices would in the long term bring more misery to members which have seen their incomes plummet in line with falling crude prices.

The oil price slump has also led to a sharp reduction in both wholesale and residential heating oil prices.

Mr O'Brien warned that while Opec members may be keen to support prices by constricting supply and shelving exploration projects, doing so would lead to both a more protracted recession and a slower period of recovery.

On Sunday (March 15th), Opec members ruled against making another production cut, leaving the current constriction at 4.2 million barrels a day against September 2008 output.