Energy week sees focus on investment in gas production
Stronger together – the message from the first day of Energy Week in Moscow. Representatives of OPEC are talking to Russia's government about the organisation's efforts to support the oil price, possibly by cutting production.
The International Energy Forum brings together Opec, with ministers from non-member countries like Russia, China and India. It admits global demand for oil is already decreasing, dragging the price below $69. The gas price is likely to follow – and Nobuo Tanaka, Executive Director of the International Energy Agency fears it will hit investment.
“The gas price has declined a little bit but eventually I think we see that there is very strong demand for gas from Europe. We are very much concerned if there is any restriction, or that limitations on investment happen.”
However, falling investment in future production can be solved, despite the current crisis – according to Ernesto Lopez Anadon, President of the International Gas Union.
“I think its going to be a slowdown of production and consumption but also an opportunity for the producing countries, companies to update investment and be ready for the new world expansion.”
The plan to create an alliance of gas exporters – Iran, Qatar and Russia – has been revived in recent days – offering the opportunity to cooperate in exploration, investment and pricing. But analysts say Russia, may have little use for a gas cartel. Its gas is largely sold on long-term contracts, while customers like France and Germany maintain underground gas storage – insulating them from short term price fluctuations.