Nicosia: Saudi Oil Minister Ali Naimi has said that industrialized countries were studying intensely the use of alternative forms of energy, which would lead to limiting world demand for oil and reliance on Arab oil.
Addressing the 8th Arab Energy Conference in Amman on May 14, he said that Arab petroleum producers should take note of developments such as talks on the future of nuclear power, increased use of coal, energy-efficient vehicles, enactment of regulations on energy efficiency and the expansion of non –conventional oil development.
Their impact will not be felt in the next two or three years, "but the telltale signs are beginning to show now," he said.
Naimi reminded participants of the 1980’s crisis, when industrialized countries managed to reduce oil consumption and to increase the use of alternative energy sources, which caused oil prices to plummet by 80 percent and Arab oil production to fall by 50 percent.
Turning to another subject, Naimi stressed the need for the Arab world to develop a viable petroleum industry, capable of competing globally, if it is to fully benefit from the fact that it produces one third of global production and is the home of 60 percent of global proven oil reserves.
He pointed out that Asian countries without meaningful petroleum resources already had petroleum engineering companies capable of global competition in terms of the planning and implementation of mega-projects, while no such companies existed in the Arab world.
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