Global Energy: Will Weaker Demand Offset Potential Supply Crunch?

DAY TWO, 16:30-17:45

In 2008-09, the global financial and economic crisis triggered very sharp drops in world oil and gas prices, which was followed by growth deceleration and even declines in oil and gas consumption due to lower energy demand, especially pronounced in OECD countries. The crises engendered widespread cuts in energy spending and halted many oil and gas upstream projects. Meanwhile, apparent oil and gas oversupply and relatively low prices on global markets may represent a treacherous decoration, and trimmed upstream investments may set the preconditions for another oil and gas supply crunch.

Recent estimates from international government energy organizations and some international oil majors highlight that worldwide petroleum exploration efforts are not intensive or efficient enough to secure future demand for oil and gas in a reliable manner. Are we now much closer to peak oil production globally, with most major oilfields in the development stage having already passed their peak output levels and their rate of production decline being higher than previously estimated?

The panel participants will discuss conclusions about energy policy that can be drawn from the current financial and economic crisis and share their views on the ways to secure smooth development of the world’s oil and gas industry, which implies “reasonable prices”, securing incentives for investments in petroleum exploration and new production projects. This discussion is of special importance for Russia, the world’s leading oil and gas producer and exporter, which is struggling to optimize its energy strategy and secure its sustainable economic development in the longer run.