In a major international forum on oil held in Kuwait City yesterday, the Kuwaiti minister of water, communications and oil Nabil bin Salamah said that the current economic crisis and its projected impact on crude demand and the subsequent falling of crude prices present one of the most significant challenges facing the oil and gas industry.
Bin Salamah said that while the development of alternative sources of energy is important for sustainable development the need for investments to increase crude supply is important to guarantee the supply of future needs.
However, the concerns about the declining demand for fossil oil in the future could affect the decisions of oil producers with regard to investments.
Moreover, the falling prices in the long run without a commensurate decline in the cost of production will also affect long-term investments and consequently it would affect price stability in the future.
In addressing the issue of oil and environment, the minister said that the environmental awareness and the phenomenon of climate change have acquired new significance in recent years, and emphasized that the reduction of air pollutants has become of central importance to the oil industry which is now required to produce environmentally-friendly products.
Source: Al-Qabas, Kuwait, March 31, 2009
