'Stable oil price need of the hour'

The 18th World Petroleum Congress opened on Sunday with a call for stabilising the world oil market.

In his opening address to the five-day event, South African President Thabo Mbeki cited a World Bank research which showed that the poor countries suffered from high energy prices twice as much as the rich.

Addressing delegates from 62 countries, Mbeki said, "It used to be said that money makes the world go around. Perhaps now we can say that it is energy that makes the world go round."

Stating that the petroleum sector is central to development, he said it had enormous possibilities to contribute to an atmosphere of optimism affecting all countries, especially the developing ones.

Being hosted by South Africa in the backdrop of rising international crude prices, the spotlight is on a new dawn for Africa so that inhabitants of the oil-rich, yet poverty stricken countries of the continent receive benefits of their natural resources.

Eivald Roren, president of the World Petroleum Council, said fossil fuels would continue to dominate global energy use, accounting for 85 per cent of the increase in the world's primary energy demand.

The International Energy Agency and the Organisation of Petroleum Exporting Countries forecast that oil demand will grow to 107 million barrels a day in 2020 and 121 million barrels a day by 2030. However, he said, "People in general have not received the benefits of being hosts of natural resources."

He said the recent hike in price has shown that spare capacity of production and refining did not help and it was time to reduce demand through changes in consumption.

South African Minerals and Energy Minister Lindiwe Hendricks said the strategic importance of oil as an economic resource led to governments taking interest in the sector.

Edmund Daukoro, minister of petroleum and energy, Nigeria, the largest exporter of oil in the continent, said the prevailing market realities were beyond the control of the traditional players and there was need to focus on producers and consumers.

Founded in London in 1933, WPC is held every three years. The event is being held in Africa for the first time in WPC's 72 years history.

(The correspondent's visit to Johannesburg was sponsored by ONGC.)