The 6Th Asian Ministerial Energy Roundtable from Here to Opportunity Saudi Aramco Is a World Leader in Integrated Energy and Chemicals
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ENERGY SECURITY THROUGH DIALOGUE OFFICIAL PUBLICATION HOSTED BY SUPPORTED BY The 6th Asian Ministerial Energy Roundtable from here to opportunity Saudi Aramco is a world leader in integrated energy and chemicals. We are driven by the core belief that energy is opportunity. From producing approximately one in every eight barrels of the world’s crude oil supply to developing new energy technologies, our global team is dedicated to creating positive impact in all that we do. saudiaramco.com Produced and published by Victory House, 99-101 Regent Street, London W1B 4EZ, UK Tel: +44 (20) 7440 3500 • Fax: +44 (20) 7440 3545 • Email: [email protected] Consulting Editor David Buchan Chairman and Founder Rupert Goodman DL, Chairman, Advisory Council Rt Hon Lord Hurd of Westwell CH CBE PC Chief Operating Officer Eamonn Daly, Executive Publisher Alastair Harris, Designer Jon Mark Deane Regional Publisher Declan Hartnett, Head of Special Projects Waqas Ahmed Consultant, Public Affairs Lord Cormack DL FSA, Non-Executive Directors Timothy Bunting, Hon Alexander Hambro Marketing Administrator Chris Cammack, PA – Chairman’s Office Hilary Winstanly Editorial Consultant Jonathan Gregson, Secretariat Gil Pearson, Senior Staff Writer Nicholas Lyne Special Advisor, China Lord Powell of Bayswater KCMG, Special Advisor, Russia Sir Andrew Wood GCMG Special Advisor, Latin America Jacques Arnold, Special Advisor, Global Issues Professor Victor Bulmer-Thomas CMG OBE The official publication of AMER6, published by FIRST/World Petroleum in cooperation with the IEF, is composed of the opinions and ideas of leading business and political figures. 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FIRST/World Petroleum gratefully acknowledges the co-operation and assistance of the IEF Secretary General, Dr. Aldo Flores-Quiroga, Simon Stoddart, Chief of Staff, Lina Murad, Executive Liaison Officer and the Ministry of Energy and Industry, Qatar ENERGYTHE GLOBAL SECURITY ENERGY THROUGH DIALOGUE DIALOGUE A FRUITFUL DISCUSSION: HIGHLIGHTS FROM THE 6TH ASIAN MINISTERIAL ROUNDTABLE By Dr Mohammed bin Saleh Al-Sada, Minister of Energy and Industry of the State of Qatar n 9th November, 2015 the Ministry of Energy way for all nations to reach their development goals. and Industry of Qatar, in association with the • The current market instability will not last forever, and International Energy Forum (IEF) and co-hosted all parties have to take the required actions to sustain by Thailand, successfully concluded the 6th investments in the energy sector to meet future energy OAsian Ministerial Energy Roundtable (AMER6) in Doha. demand and strike a market balance. This Roundtable was hosted by Qatar under the patronage • Asia remains a vital engine of growth for the world’s of His Highness Sheikh Tamim Bin Hamad Al-Thani, the economy, and will remain so for the foreseeable future. Emir of the State of Qatar. This prestigious gathering was The demographic changes will have increasing influence inaugurated by His Excellency Sheikh Abdullah Bin Nasser on future energy demand. Bin Khalifa Al-Thani, the Prime Minister of the State of • All available resources are needed to meet future growth Qatar, with the objective of enhancing cooperation in the in energy demand. It is becoming increasingly evident field of energy between Asian countries. that world economic stability is dependent on stable and The Roundtable focused on important energy issues and transparent Asian energy policies. challenges which were discussed in the form of plenary • It was acknowledged that every nation has the right to sessions under the following themes: “Oil markets: a development and growth, in line with their national new normal or just another cycle, and what it means for visions, to meet the aspirations of their peoples and Asia”; “Gas and coal in Asia’s energy mix: interactions contribute to the betterment of their communities. and uncertainties” and “Delivering on the clean energy • It was reaffirmed that energy security is an essential agenda: prospects and the role for policy”. component of any economic development dialogue. Therefore The event was attended by Energy Ministers and high- the role of international organisations and agencies needs to level delegations from twenty Asian countries, as well as be made more active in order to achieve this. the chief representatives of six international organisations. • There was agreement emphasising the importance of This Roundtable provided a good opportunity to review reducing mankind’s carbon footprint, and the important and reflect on the consequences and prospects of the role played by natural gas in the transition to a decarbonised energy market in the aftermath of the last year and a half world. In this context the use of natural gas as a clean and of extreme challenges and turbulence in the energy sector. affordable source of energy was emphasised. Natural gas The participants of the Roundtable reached agreement will play a critical role in the climate change negotiations on many key issues, such as: at COP21 in Paris. • The importance of continuous international dialogue • It was highlighted that coal continues to be less expensive between consumers and producers of energy as the only than gas, even in the current low oil price environment, making it difficult to reduce the rate of emissions produced by coal-fired electricity generation. Delegates endorsed the proposal of the Kingdom of Saudi Arabia delivered by HRH Prince Abdulaziz bin Salman Al- Saud, to establish an Asian Energy Efficiency Knowledge Sharing Framework, under the auspices of the IEF. At the end of the Roundtable, participants agreed that active dialogue is of paramount importance in order for our nations to achieve their development goals. Participants from various nations also presented their own energy scenarios and viewpoints, which were well appreciated by those present. On behalf of the Government of the State of Qatar, I would like to thank all those involved in the event for their positive contributions, which made possible the realisation Dr Mohammed bin Saleh Al-Sada addresses AMER6 of the goals of this meeting, and the IEF Secretariat for all their efforts. n 6TH ASIAN MINISTERIAL ENERGY ROUNDTABLE 3 ENERGYTHE GLOBAL SECURITY ENERGY THROUGH DIALOGUE DIALOGUE AS ASIA GOES, SO GOES THE WORLD OF ENERGY By HE Aldo Flores-Quiroga Secretary General, International Energy Forum (IEF) ll eyes are on Asia. It is shaping the future of expansion in just about every country in the region point to the world economy and becoming the new a more diverse and sustainable energy mix. In the coming centre of gravity of the global energy sector. years Asia will invest more than Europe or North America Regional investment and trade flows to and in power generation with renewable energy sources. Based Afrom Asia have registered historic highs in the last decade on its economic momentum and ability to innovate, it and created what is perhaps the most dynamic regional may well become the world leader in the development and energy market anywhere. As Asia goes, it seems, so goes deployment of clean energy technologies. the world of energy. What does all this mean for Asia’s energy markets and A region as diverse as this one defies easy categorisation, the relationship between its producers and consumers? but the general trends in the relationship between its energy How are current energy market trends shaping policy and producers, consumers, and transit States are apparent. The investment decisions in Asia’s various sub-regions? How Middle East, Siberia, Central Asia, and Oceania are the should governments and companies craft their strategies in powerhouses of supply. East Asia is the main source of the face of the uncertainties presented by the current oil demand growth. In between lie countries whose production market cycle? How will the energy mix evolve in response and consumption are smaller by comparison, but whose demand is growing rapidly to fuel economic growth. The The growing interdependence among energy trade and investment relations of these countries the countries in Asia is getting help to articulate transactions between producers and consumers across the vast Asian expanse. stronger even as supplies from other The evident complementarities that follow from these regions of the world gain ground trends are paving the way for an updated version of the fabled Silk Road, in which energy flows will play a much to growing interest in the environmental footprint of the more significant role amidst the growing regional trade in energy industry? What are the prospects for successful fuel- goods and services. Asian demand for oil, gas, and coal switching whilst avoiding negative impact on economic has