Brussels, 01/06/2007 (Agence Europe) - Under the leadership of the heads of the European Commission Directorate for Conventional Energies and the research division of the secretariat of OPEC, Heinz Hilbrecht and Hasan M. Qabazard respectively, the round table meeting of experts, held in Brussels on Wednesday as part of the EU-OPEC dialogue, spent much of its time discussing the effects of energy, climate and transport policies - both planned and already implemented - in consumer countries on the future demand for oil and on the level of supply and available capacity in the exporting countries. Three other issues were also discussed in separate sessions: energy prospects to 2030, expanding production capacity and market stabilisation measures.
Ultimately, the meeting highlighted the importance of access for poor countries to modern energy services, which contribute to the achievement of the Millennium development goals.
Both sides also stressed the importance of increased diversification of energy mixes, both for EU countries and those belonging to OPEC, with greater use being made of renewable energy and biofuels. The sustainability of biofuels was debated, with emphasis on the potential impact of large scale trade in biofuels and the use of the biomass for energy, in terms of land use changes, competition with food crops, biodiversity and competition for aquifer resources.
Despite welcoming further diversification of energy mixes, the parties noted that, in every credible scenario, the world will have to continue to depend on oil as the dominant energy source to encourage growth and social progress. They noted, too, that, according to most credible international institutions, there are enough conventional and non-conventional oil resources to satisfy demand.
Environmental protection, at both local and world level, also featured strongly in discussions. Both sides highlighted the need to encourage clean fossil fuel energy technologies. Basing debate on the outcome of September's round table discussions in Riyadh, which focused on carbon capture and storage, they stressed that this latest technology had to be made viable, given the role it could play in limiting greenhouse gas emissions, and they agreed to cooperate closely in its development.
With regard to increasing capacity, the OPEC experts highlighted the risk of useless capacity as a result of uncertainty over future levels of demand for oil.
Finally, there was recognition of the impact on the downstream sector of policies related to the environment and cleaner fuels. The discussions also brought up progress in the joint EU-OPEC study on investment needs in the refining sector and the role of the oil refining industry on oil markets.
The EU countries and the oil exporting countries will meet for ministerial talks in Vienna on 21 June, the 4th meeting of this kind since June 2005. (eh)