Al-Falih unveils 5-point plan at Beijing meeting

Energy, Industry and Mineral Resources Minister Khalid Al-Falih
Updated 02 July 2016
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Al-Falih unveils 5-point plan at Beijing meeting

RIYADH: Energy, Industry and Mineral Resources Minister Khalid Al-Falih, has drawn up a new plan to meet the goals of global requirements.
The plan covers five areas to meet the goals, which include the overall economy, energy and the environment, technology, energy efficiency, and clean natural gas and renewable energy.
Speaking at the ministerial meeting of the energy ministers of Group of Twenty (G20) in Beijing, the minister said: “This plan aims to obtain an adequate supply of energy. We have to facilitate investments in all energy sources, without discrimination. The include investments in technology to make all energy sources environmental-friendly.”
Al-Falih added: “Innovation and technology must be strategic pillars to reduce the environmental impacts of the energy usage as well as focusing on energy efficiency. We have to take advantage of cleaner natural gas in order to achieve a significant reduction in carbon emissions.”
He urged the international community to develop a policy based on voluntary participation and make contributions with a view to achieving fundamental goals of economic growth and environmental sustainability.
He called upon the international community to work together to maintain a sufficient and reliable supply of energy while reducing emissions contain greenhouse gases to the lowest possible level, and pointed out the challenges the international community faces to balance the goals of economy, energy and environment.
Highlighting Saudi Arabia’s efforts to promote preservation of the environment, Al-Falih said: “The international community must work toward ensuring the growing clean energy demand of the world population. The world will still need to use all forms of energy to meet this growing demand.”
He added: “In light of continuation of various technical and economic challenges faced by the energy alternatives, we have to realize that fossil fuel will remain the main core to meet the global demand for energy for the coming decades.”
Highlighting the Saudi energy policy ensuring the Kingdom’s continuation of energy supply to the global markets, the minister said the Kingdom also focuses its efforts on developing energy based on the cleaner gas.
It also has an ambitious program regarding efficiency of energy consumption in the Kingdom, especially in transportation, housing and commercial buildings and industrial area in order to reduce the intensity of energy consumption.
The Kingdom also plans to pump more investments in field of renewable energy, particularly in the field of solar power, he said.
The G20 meeting of the energy ministers was focused on a number of issues pertaining to energy, natural gas, climate change and sustainable development.
Al-Falih also held a number of bilateral meetings with heads of delegations participating in the G20 meeting, including those from China, the United States, Italy, Japan, the UK and Germany.
During the meetings, bilateral relations and issues of common interests were discussed.


‘Huge increase’ in crude prices not expected: IEA executive director

Updated 19 July 2019
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‘Huge increase’ in crude prices not expected: IEA executive director

  • The International Energy Agency is revising its 2019 global oil demand growth forecast down to 1.1 million barrels per day
  • IEA’s Fatih Birol: Serious political tensions could impact market dynamics

NEW DELHI: The International Energy Agency (IEA) doesn’t expect oil prices to rise significantly because demand is slowing and there is a glut in global crude markets, its executive director said on Friday.
“Prices are determined by the markets ... If we see the market today, we see that the demand is slowing down considerably,” said IEA’s Fatih Birol, in public comments made during a two-day energy conference in New Delhi.
The IEA is revising its 2019 global oil demand growth forecast down to 1.1 million barrels per day (bpd) and may cut it again if the global economy and especially China shows further weakness, Birol told Reuters in an interview on Thursday.
Last year, the IEA predicted that 2019 oil demand would grow by 1.5 million bpd. But in June this year it cut the growth forecast to 1.2 million bpd.
“Substantial amount of oil is coming from the United States, about 1.8 million barrels per day, plus oil from Iraq, Brazil and Libya,” Birol said.
Under normal circumstances, he said, he doesn’t expect a “huge increase” in crude oil prices. But Birol warned serious political tensions could yet impact market dynamics.
Crude oil prices rose nearly 2 percent on Friday after a US Navy ship destroyed an Iranian drone in the Strait of Hormuz, a major chokepoint for global crude flows.
Referring to India, Birol stressed the country could cut its imports, amid rising oil demand in the country, by increasing domestic local oil and gas production.
Prime Minister Narendra Modi had set a target in 2015 to cut India’s dependence on oil imports to two-thirds of consumption by 2022, and half by 2030. But rising demand and low domestic production have pushed imports to 84 percent of total needs in the last five years, government data shows.
Meanwhile, the IEA doesn’t expect a global push toward environmentally friendly electric vehicles can dent crude demand significantly, Birol said, as the main driver of crude demand globally has been petrochemicals, not cars.
He said the impact of a serious electric vehicle adoption push by the Indian government would not be felt immediately.