Tokyo: The G7 energy ministers on Monday agreed to step up energy security and boost investment to counter instability caused by the fall in crude oil prices.
Ministers from Japan, Canada, Germany, Italy, the US, Britain and France and representatives from the International Energy Agency (IEA) and The International Renewable Energy Agency agreed in the meeting held in Kitakyushu, Japan, to boost investment to increase production, taking into account that the energy demand in emerging markets is expected to increase in the long term, EFE reported.
Global investment in oil production fell 20 percent in 2015 amid continuously falling oil prices, according to IEA’s data.
This could lead to a lack of production capacity and cause a rise in prices of crude oil and gas.
In a joint declaration issued after the meeting, the ministers stressed the importance of maintaining investment in the private and public sectors to ensure a supply of sustainable energy in the long term to support economic growth.
They also emphasised the need to increase spending to construct energy efficient power facilities to reduce greenhouse gas emissions.
The G7 also advocated the establishment of a plan to ensure a sufficient supply of natural gas in emergency situations with the objective of improving security of gas supply.
Although the demand for gas is on the rise, the sector lacks a global regulatory framework like the one that exists for crude oil to ensure supply in these cases.
The participants also agreed to share viewpoints on the development of a market for liquefied natural gas for a market-based pricing.
The conclusions of the meeting are expected to be discussed in the upcoming meeting of the world’s most industrialised countries, which will be held in the Ise-Shima National Park on May 26 and 27.
