Co-operation central to stability in global oil and gas industry
Bukola Odufade is Businessamlive Reporter.
You can contact her on bukola.odufade@businessamlive.com with stories and commentary.
Major stakeholders in the global oil and gas industry have all stressed the importance of co-operation in tackling issues such as an economic development of developing countries, evolving energy future, oil industry challenges, and investments amongst others at the 7th OPEC International seminar in Vienna.
Ibe Kachikwu, Nigerian minister of state for petroleum resources who is present at the ongoing event harped on the need for cooperation between oil companies and especially IOCs and their host communities to ensure a balance in the development of the human capital needs of the areas where production is ongoing in developing nations especially in Africa.
“Over the next 5-10 years, there will be a global increase by over 20 million barrels. Whilst we are focused on the short term challenges within the industry, we must fight against the long term challenges in developing countries such as the fact that our asset hosts are living below poverty line.”
He continued by saying that “as OPEC is being persuaded to shift pricing, it must take into consideration the economic development of developing countries who depend heavily on oil as a primary resource. We must cooperate with our host communities to ensure they are not left worse off. They host our investments and for that reason must be taken care of.”
Mohammed Barkindo, secretary-general of OPEC in his opening remarks said that “cooperation is central and This is rightly so as the important in order to sustain stability, as we tackle such issues as evolving a sustainable energy future; technology breakthroughs; the energy transition; the environment; oil industry challenges; investments; and, the global economy.”
He also said that over the past 18 months, cooperation has helped return more balance to the oil market, more optimism to the industry and has had a positive impact on the global economy and trade worldwide and that it remains vital for all stakeholders work together to meet the challenges, as well as the opportunities.
Claudio Descalzi, chief executive officer of Eni, also present at the event said that the oil industry has lost investment due to the downturn of oil but must be aware of this and try to maintain stability.