also highlighted U.S. concerns -- and the potential gulf between Washington and Asian counterparts -- about subsidized prices and a global race for assets.NYT December 16, 2006
China, at Energy Summit, Urges Oil Consumers to Unite
By REUTERS
Filed at 11:33 a.m. ET
BEIJING ( Reuters) - China, hosting its first major energy summit on Saturday, urged top oil consumers to join together in the face of resurgent producer power and sought to paper over differences on how best to achieve energy security.
Ministers from the United States, India, Japan and South Korea -- nations that consume nearly half the world's oil -- gathered in Beijing for the meeting, which marked a rare move by China to take a leadership role on global energy issues.
``We want to send out an important, positive message, which is: the world's key energy consuming countries plan to strengthen mutual cooperation,'' China's top energy policy maker Ma Kai said.
``(We will) promote conservation of oil, improvement of energy efficiency, strong development of oil alternatives, and reduce reliance on oil,'' he added in prepared remarks to the forum.
The call to action may reflect a growing desire by China to engage with other key energy users, some of whom have criticized its secretive approach, price controls and a strategy favoring Chinese ownership of resources over spot buying of oil.
It also echoed a shared concern over increasingly nationalistic policies in major oil and gas producers that threaten to stymie investment and limit new supplies.
In addition, producer cartel OPEC will see its power expand when new member Angola joins next year.
``This is the first time an energy conference is organized to look at the interest of consumers,'' Indian oil minister Murli Deora told Reuters after the meeting.
``Otherwise it is all OPEC and the oil producers interests.''
Ma emphasized that the five countries had common problems and could benefit from a joint approach to them, although delegates were already pleased China was taking a more prominent role.
``South Korea is hopeful that the meeting -- hosted by China which has been rather inactive in energy cooperation up until now -- will increase China's role as a important partner in global energy security,'' one official in Seoul said.
The five consumer nations will focus on diversifying energy sources and increasing efficiency to reduce oil dependency, cooperating on strategic oil reserves, and encouraging more investment in the industry to boost market stability, according to a ministerial statement issued at the end.
They hope the dialogue will become a regular event, and Japan has already offered to host the next round, India's Deora said.
PRICE, EQUITY TENSIONS
U.S. Energy Secretary Sam Bodman, echoed calls for greater cooperation, but also highlighted U.S. concerns -- and the potential gulf between Washington and Asian counterparts -- about subsidized prices and a global race for assets.
Although he avoided mentioning any country by name, Beijing's caps on fuel costs and its rush to buy up oil and gas fields worldwide have been top of the agenda in previous bilateral meetings between the two countries.
``I believe our mutual long-term economic goals will be best served by relying on global markets to set prices, in both the upstream and the downstream and both internationally and domestically,'' he added.
Bodman also repeated the U.S. position that well-functioning markets are a better guarantee of supplies than owning oilfields.
``It seems as though there is a growing trend to equate energy security with ownership of energy reserves, rather than broad access to reserves,'' he said, according to a copy of his remarks.
``Even under the best circumstances, in my view, only a fraction of any nation's projected needs can be met through direct ownership of reserves,'' he added.
Bilateral deals were finalized on the summit sidelines included a multi-billion dollar agreement for U.S.-based Westinghouse Electric Co. to build nuclear plants in China, that analysts said may help Beijing smooth ties with Washington.
China, at Energy Summit, Urges Oil Consumers to Unite
By REUTERS
Filed at 11:33 a.m. ET
BEIJING ( Reuters) - China, hosting its first major energy summit on Saturday, urged top oil consumers to join together in the face of resurgent producer power and sought to paper over differences on how best to achieve energy security.
Ministers from the United States, India, Japan and South Korea -- nations that consume nearly half the world's oil -- gathered in Beijing for the meeting, which marked a rare move by China to take a leadership role on global energy issues.
``We want to send out an important, positive message, which is: the world's key energy consuming countries plan to strengthen mutual cooperation,'' China's top energy policy maker Ma Kai said.
``(We will) promote conservation of oil, improvement of energy efficiency, strong development of oil alternatives, and reduce reliance on oil,'' he added in prepared remarks to the forum.
The call to action may reflect a growing desire by China to engage with other key energy users, some of whom have criticized its secretive approach, price controls and a strategy favoring Chinese ownership of resources over spot buying of oil.
It also echoed a shared concern over increasingly nationalistic policies in major oil and gas producers that threaten to stymie investment and limit new supplies.
In addition, producer cartel OPEC will see its power expand when new member Angola joins next year.
``This is the first time an energy conference is organized to look at the interest of consumers,'' Indian oil minister Murli Deora told Reuters after the meeting.
``Otherwise it is all OPEC and the oil producers interests.''
Ma emphasized that the five countries had common problems and could benefit from a joint approach to them, although delegates were already pleased China was taking a more prominent role.
``South Korea is hopeful that the meeting -- hosted by China which has been rather inactive in energy cooperation up until now -- will increase China's role as a important partner in global energy security,'' one official in Seoul said.
The five consumer nations will focus on diversifying energy sources and increasing efficiency to reduce oil dependency, cooperating on strategic oil reserves, and encouraging more investment in the industry to boost market stability, according to a ministerial statement issued at the end.
They hope the dialogue will become a regular event, and Japan has already offered to host the next round, India's Deora said.
PRICE, EQUITY TENSIONS
U.S. Energy Secretary Sam Bodman, echoed calls for greater cooperation, but also highlighted U.S. concerns -- and the potential gulf between Washington and Asian counterparts -- about subsidized prices and a global race for assets.
Although he avoided mentioning any country by name, Beijing's caps on fuel costs and its rush to buy up oil and gas fields worldwide have been top of the agenda in previous bilateral meetings between the two countries.
``I believe our mutual long-term economic goals will be best served by relying on global markets to set prices, in both the upstream and the downstream and both internationally and domestically,'' he added.
Bodman also repeated the U.S. position that well-functioning markets are a better guarantee of supplies than owning oilfields.
``It seems as though there is a growing trend to equate energy security with ownership of energy reserves, rather than broad access to reserves,'' he said, according to a copy of his remarks.
``Even under the best circumstances, in my view, only a fraction of any nation's projected needs can be met through direct ownership of reserves,'' he added.
Bilateral deals were finalized on the summit sidelines included a multi-billion dollar agreement for U.S.-based Westinghouse Electric Co. to build nuclear plants in China, that analysts said may help Beijing smooth ties with Washington.
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