London Energy Meeting
HRH The Duke of York attended a dinner at Lancaster House on 18th December 2008 to mark the occasion of the London Energy Meeting. The dinner was hosted by the Secretary of State for the Department of Energy and Climate Change Ed Miliband, and attended by ministerial level representatives of over 35 oil producing and consuming countries, international organisations such as OPEC1, the IEA2, IEF3 and World Bank, and senior representatives of a small number of international energy companies.
The Duke made a speech which welcomed the guests to London, reflected the informal tone of the evening, but stressed the important nature of the issues to be addressed at the meeting the following day: discussing the impact of the global financial crisis and economic slowdown on energy markets, enhancing oil producer-consumer dialogue, tackling oil price volatility, and creating a stable energy market framework to enable energy security, affordability and ongoing investment for both future production and low carbon diversification.
“Of course when oil prices are high, it boosts the economies of the producing countries and the profits of oil companies. And when they are low, it is consumers who, in the short-term, take comfort. But, in today’s increasingly interconnected globe, wildly volatile oil prices make planning for the medium-and long-term future very difficult, and are a serious deterrent to possible future investment, thus sowing the seeds for even greater volatility in times to come. A continual yo-yoing of prices is in no-one’s interest.
It is in this realisation that we share a common interest in tackling volatility and its causes which makes meetings such as the one which will take place tomorrow so important. An open, frank and productive dialogue between energy producers and consumers is a necessary step in creating the framework for a stable market.
A framework in which we can provide everyone – including in the least developed countries – with secure and affordable energy.
A framework in which oil producing countries and companies have the confidence to invest in future production.
A framework in which we can begin to make the necessary transitions to an economy based on low carbon emissions, for the two vital reasons of climate change and the finite nature of the natural resources of the globe.”
The following morning, the Duke was received at the London Energy Meeting by the Prime Minister and Secretary of State Ed Miliband. The Prime Minister opened the meeting, followed by a response from the Minister of Petroleum and Mineral Resources of Saudi Arabia Ali Al Naimi. The Duke also attended the following plenary session discussing ‘Oil and the World Economy’.
The London Energy Meeting built on the foundations laid at the first ad hoc energy meeting held in Jeddah, Saudi Arabia in June 2008. Reflecting the shared concerns of both producing and consuming nations, progress was made through recognition of the need to promote well-functioning energy markets; to maximise efficient and effective use of global resources; to help low-income countries deal with high and/or volatile energy prices; and to enhance the process of producer-consumer dialogue.
Participants noted that, notwithstanding the current global economic climate, there would be continuing demand for oil for the foreseeable future, and therefore continued investment was required in a stable and transparent manner to ensure supply at a reasonable and less volatile price; it was affirmed that further efforts should be made to provide high quality data to the Joint Oil Data Initiative (JODI). Participants recognised the importance of making efficient use of finite global resources, and therefore the potential of international collaboration such as the International Partnership for Energy Efficiency Cooperation (IPEEC) and increased use of carbon capture and storage, solar, wind, nuclear and other technologies. Participants welcomed enhancement of the IMF’s4 Exogenous Shocks Facility and the establishment of the World Bank’s Energy for the Poor Initiative. Participants welcomed the proposal to establish an expert group to make recommendations for strengthening continued international dialogue, and committed to maintain high level engagement on energy issues during 2009 given its importance to the global economy.
1 OPEC = Organisation of Petroleum Exporting Countries
2 IEA = International Energy Agency
3 IEF = International Energy Foundation
4 IMF = International Monetary Fund
