HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani and HE the Minister of Energy and Industry Dr Mohamed bin Saleh al-Sada at the inaugural session of the 6th Asian Ministerial Energy Roundtable (AMER 6) at the Sheraton on Monday.

By Pratap John
Chief Business Reporter

A prolonged period of depressed oil price will hamper investments in the industry and impact both producers and consumers, said HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada.

The decline in oil prices has led to budget deficits in many producing countries and economic slowdown in consuming countries because of the global situation, al-Sada said in his remarks at the inaugural session of the 6th Asian Ministerial Energy Roundtable (AMER 6) at the Sheraton on Monday.

Low oil and gas prices would depress investment in the industry and could lead to a shortage in supplies, al-Sada said.

“Since the price slide began in mid-2014, there has been a shortfall of about $130bn in the oil industry investments,” the minister noted.

"The decline in oil prices is threatening not just the economy of this continent but also risks discouraging investment in future," al-Sada said.

"When we talk about oil and gas in the long term, many prolific oil fields in Asia are declining - growth should be at a more moderate rate."

He added, "A prolonged period of low prices would impact investment in the region negatively - this is going to impact supply in future. Declines in oil and natural gas prices have a direct negative impact on producers in the short term and on consumers in the medium and long terms.”

The significance of the conference is heightened by virtue of the fact that Asia is the biggest energy producing as well as consuming region. This conference provides an ideal platform for both the energy producers and consumers to share their views and concerns about energy security and engage in meaningful discussions to arrive at a consensus and way forward.

AMER 6 is an apt occasion to review and reflect on the consequences and prospects of the energy market in the aftermath of the last one and a half years of extreme challenges and turbulence, duly taking into consideration the economic and political ground realities and their current and future impact on the energy market. This will ensure development of sustainable supplies to match the growth in demand.

Al-Sada said the meeting that was organised by the Ministry of Energy and Industry in collaboration with the International Energy Forum (IEF) was held at a time characterised by fluctuations in the global economy and the energy markets in particular.

Recently, several national and international oil companies reduced their investments and abandoned projects aimed at increasing production as a result of lower energy prices. This, he said, will affect producers' ability to meet any increase in demand, which is inevitable in the near future.

The minister said the two-day forum, which was attended by ministers and representatives from some 30 largest producers and consumers of energy in Asia, focused on the importance of dialogue in the convergence of views to create a balance in the energy markets, and in securing global energy needs to ensure continued development in the participating countries.

Earlier, the 6th Asian Ministerial Energy Roundtable was inaugurated by HE the Prime Minister and Minister of Interior Sheikh Abdullah bin Nasser bin Khalifa al-Thani.