World energy leaders on Tuesday said that fossil fuel will continue to dominate the international energy markets in foreseeable future in order to sustain economic development.

Energy ministers from leading nations and developing countries underlined the need to reduce the cost of energy to provide relief to poor people. They also stressed the policy-makers and regulatory authorities not to create unnecessary hurdles and obstacles for the usage of fossil fuel that may have negative impacts on growth.

Addressing the ministerial roundtable on fossil fuel at World Energy Forum, the “energy gurus” from nine Asian and African states also developed consensus to focus on providing universal access to basic energy services that will benefit people. They also vowed to promote renewable energy to save environment of the planet.

“Choosing a right energy mix is very important. We should find ways to boost oil and gas production as well as lower carbon footprints and energy costs,” UAE Energy Minister Mohammed bin Dha’en Al Hamili said.

Referring to the Dolphin gas project that connects UAE, Oman and Qatar and the GCC national Grid plan, he said regional interconnectivity is also very important for sustainable development.

Al Hamili also highlighted the UAE’s initiatives on renewable energy and said Masdar and Shaikh Mohammed bin Rashid Al Maktoum Solar Energy Park, among others are some of the major steps that will diversify the emirate’s energy resources. He also invited the leaders at the energy forum to join the International Renewable Energy Agency, which is headquartered at Abu Dhabi, to promote alternative energy.

Oman Oil and Gas Minister Mohammed Hamad Al Rumhi presented a different view on energy solutions and called for a strategy to check energy consumption.

“Energy consumption is another area, which we need to focus. We need to classified energy as a basic right for every one,” he said.

Al Rumhi said about two billion people are still have no access to electricity, therefore, an energy consumption strategy should be evolved for optimum utilisation of resources. He also said fossil fuel can solve the problems of two billion people, who do not have access to electricity. “We need to do efforts to make fossil fuel a cleaner and environment-friendly, but the policymakers and regulators should not create unnecessary obstacles by imposing carbon taxes. It will hurt investment in the industry.”

“Oil, gas and coal will continue to dominate the market,” he added.

Indonesian Minister of Energy and Mineral Resources Jero Wacik said fossil fuel will remain a key energy source until 2035. He said fossil fuel comprises about 94 per cent of energy demand in Indonesia, and its demand is up by six per cent annually. He invited the international investors for investment in renewable energy projects. “Indonesia has huge potential for renewable energy projects. We offer good investment opportunities and attractive returns to investors.”

Qatar Minister of Industry and Energy Mohammed Saleh Abdulla Al Sada expressed the same views and said fossil fuel is expected to continue to meet about 80 per cent of the world’s energy needs in 2040.

“I foresee fossil fuels to continue to be the centre piece of the energy equation for several decades to come. The role of fossil fuels in meeting the current and future development needs of the world is well established,” he said.

“The issue that needs to be addressed is what would be the right fossil-fuel mix that will serve the future global demand for energy, one which is in accord with the environment, minimising the global carbon footprint,” he said.

Referring to the IEA World Energy Outlook, he said the cumulative investment needed in the oil and gas supply infrastructure alone is estimated at $19 trillion over the next 25 years. “More than 60 per cent of this total investment, is expected to take place in the non-OECD world. Natural gas is expected to receive a share of investment equal to that of the oil industry, demonstrating its increasing role in the energy equation.”

Iraqi Minister of Electricity Karim Aftan Al Junaili also highlighted various initiatives introduced in the country to promote renewable energy projects. “We have evolved two-phase plan to generate electricity through solar and wind in remote areas of the country. The government is also cooperating with Iraqi university to improve the environmental aspects of energy projects,” he said.

Algerian Minister of Energy and Mines Youcef Yousfi said world’s electricity demand would be doubled by 2040 and all source of energy should be mobilised to meet the growing demand. He also discussed the possible options to replace the fossil fuel with nuclear and renewable energy, and said an appropriate energy-mix through hydel, wind, thermal, nuclear and alternative energy is a must.

“The oil and gas alongwith coal will remain a dominant factors. The use of natural gas will increase in near future while the demand for Shell gas will definitely go up,” he said.
He said the Organisation of Petroleum Exporting Countries has capacity to play its role to stabilise the energy market.

Iran’s Minister of Petroleum Rostam Ghasemi said the energy demand is an undeniable fact and non-fossil oil will take a long time to meet the world requirements for sustainable development. He called for liberal, non-political investment and technology flow to develop the energy resources. He also stressed to develop a price mechanism to boost investment in energy sector.

“Iran has 12 per cent and 17 per cent of world’s oil and gas resources, respectively and it has been playing a responsible role to stabilise the energy market,” he said.

By: McClatchy-Tribune Regional News - Muzaffar Rizvi Khaleej Times, Dubai, United Arab Emirates