RIYADH: The world is undergoing a series of changes and issues relating to climate change must be addressed for a better world, said US Energy Secretary Steven Chu following a lecture at the headquarters of the International Energy Forum in Riyadh on Monday.

Chu, who also met Custodian of the Two Holy Mosques King Abdullah, said there are a lot of uncertainties in the sector such as fluctuation in oil prices and the sudden impact of the world financial crisis. He added that there should be concerted efforts to confront these challenges.

"Saudi Arabia and the United States enjoy a long term relationship and these two countries could find solutions to these challenging problems through scientific cooperation," said Chu, adding that new areas of partnership should be established for mutual benefit.

The secretary said the two countries have common interests in the energy sector. "We want to improve our energy efficiency and use it in the best possible manner to develop the economy," said Chu, adding that both are interested in diversifying energy resources. "This is an area we both can cooperate for each other's benefit through research and technical programs," he noted.

Speaking on the latest developments in Iran, Chu emphasized that all countries should respect the treaty of nonproliferation. Anybody violating these regulations will affect the rhythm of security, and economic and political activities in the global and regional arenas, he said.

Regarding oil supply, Chu said the market would adjust even if supplies were to decline. "I don't see any peak in oil," Chu said, dismissing the idea that global oil production was at or near a peak and is expected to slide because depletion was outrunning new discoveries.

Chu, a strong backer of alternative energy, met Monday with Petroleum and Mineral Resources Minister Ali Al-Naimi in Riyadh and other government leaders. He also visited the King Abdulaziz City for Science and Technology (KACST).