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Energy Dialogue between EU and OPEC:
The eleventh Ministerial meeting of the energy dialogue between the European Union (EU) and the Organization of the Petroleum Exporting Countries (OPEC) took place in Brussels on 24 June 2014.

Representatives of the EU and OPEC met in Brussels on 24 June 2014. It was stressed that the Energy Dialogue was well-placed to address the common challenges facing producing and consuming countries such as those in the EU and OPEC. There was a broad agreement on the need for stability, both in the energy sector and in economies, in the interests of steady, sustained economic growth across the world.

The EU side emphasised that since the last Ministerial in November 2013, a number of unexpected and challenging energy market developments have taken place. The key role of OPEC in cushioning against oil supply disruptions in the past was acknowledged. The recent tension observed in some countries of the Middle East and Europe confirmed once again the value of further strengthening cooperation between the EU and OPEC on energy and oil matters.

OPEC presented an assessment of short-term oil market prospects. The improving global economic situation was highlighted, although uncertainties and challenges remain. It was emphasized that the oil market is well supplied, despite some supply disruptions and geopolitical concerns. In this regard, there is sufficient oil production from OPEC Member Countries and steady growth in non-OPEC supply, particularly from North America. In addition, it was observed that OECD stocks are at healthy levels, and non-OECD inventories continue to build.

OPEC also provided an overview of the long-term oil market outlook. It highlighted that oil demand reaches 108.5 million barrels a day by 2035, with developing Asia accounting for 88 per cent of the increase. On the supply side, tight oil had been one of the main drivers of recent supply increases, but it was noted that North American tight oil production would plateau around 2017-2019, before declining thereafter. Non-OPEC liquids supply rises to just under 62 million barrels a day by 2035. OPEC maintains a readiness to invest in new upstream capacity and infrastructure to ensure future demand is met. From the perspective of addressing climate change, it was underscored that the on-going multilateral negotiations under the United Nations Framework Convention on Climate Change are key in the pre- and post-2020 periods.

The EU side presented the Communication on '2030 framework for energy and climate policies' of 22 January 2014. The Communication aims at providing market players with a clear and predictable legislative framework which is needed in the energy field where investments have long lead times. The framework must ensure progress towards the EU's energy and climate objectives, but at the same time take due account of security of supply and competitiveness issues.

The EU also presented the Communication on a 'European Energy Security Strategy' of 28 May 2014. The Communication outlined a number of key initiatives to improve EU energy security both in the short term, before next winter, as well as in the medium to long term. 

The latest economic and financial developments in the EU and in the Eurozone were also presented. The positive signals emerging from its economies were underlined.

Both sides underlined the importance of energy technologies in order to further improve competitiveness and promote diversification of the economies.

The future and ongoing activities of the Energy Dialogue were also briefly deliberated. OPEC reported on the status of the 2014 joint study on the 'Petrochemical Outlook: Challenges and Opportunities' and a planned roundtable to present a summary of the study that is scheduled to take place in Vienna, Austria, in the fourth quarter of 2014. It was also proposed to execute in 2015 a study on 'non-crude liquid prospects: medium- to long-term analysis'. A report on these activities will be submitted to the 12th Meeting of the Energy Dialogue in 2015.

The participants expressed satisfaction with the outcome of the meeting as another important step in the EU-OPEC Energy Dialogue, to which both parties expressed their continuing commitment in the spirit of mutual trust and cooperation.

Published on 27th June, 2014  www.dawnpost.com

Japan, ADB Announce Fund to Promote Low-Carbon Technologies in Asia

TOKYO, JAPAN  — The Asian Development Bank (ADB) announced today the establishment of a new trust fund to support the adoption of advanced low-carbon technologies in its developing member countries (DMCs), with a grant of ¥1.8 billion (about $17.65 million) from the Government of Japan.

The Minister of the Environment of Japan Nobuteru Ishihara and ADB President Takehiko Nakao today signed a Letter of Intent for Cooperation on Environmental Issues, which will include cooperation for effective implementation of the Japan Fund for the Joint Crediting Mechanism (JFJCM).

“The establishment of the JFJCM is a timely step to help meet the demands of the Asia and Pacific region for sustainable low-carbon infrastructure,” Mr. Nakao said at the signing ceremony. “The fund will provide grant finance to reduce the cost of advanced low-carbon technologies, such as those related to waste-to-energy schemes and smart grids, which often have initial high investment costs and long cost recovery periods.”

Due to rapid economic growth, the region has become a major source of greenhouse gas (GHG) emissions, with the region’s carbon dioxide (CO2) emissions accounting for 43% of the world’s CO2 emissions in 2010. This share could rise to 50% of world CO2 emissions by 2035. The region’s developing countries need considerable investments to make the transition to a low-carbon development path.

Many advanced low-carbon technologies face significant barriers to adoption such as high up-front costs and perceived risk that the technology will not perform to expectations. The JFJCM will offer up-front grant financing and technical assistance to address these barriers.

With the establishment of the JFJCM, ADB is the first multilateral development bank to have a trust fund for supporting GHG reduction projects under the Joint Crediting Mechanism (JCM).

The JCM is a bilateral carbon market mechanism between the Government of Japan and developing countries to promote GHG emissions reduction projects. It complements multilateral carbon market schemes, such as the Clean Development Mechanism (CDM), and follows a similar approach to the CDM for financing and accounting of verified GHG emissions reductions.

The eligible countries of the JFJCM are DMCs of ADB that have signed memoranda of understanding for the JCM with the Government of Japan. To date, eight DMCs are eligible—Bangladesh, Cambodia, Indonesia, Lao People’s Democratic Republic, Maldives, Mongolia, Palau, and Viet Nam—and the list of eligible DMCs is expected to expand.

The JFJCM will help finance the adoption of advanced low-carbon technologies that are proven but not yet widely used in developing countries, including smart grids, waste-to-energy schemes, and energy efficiency measures in facilities such as water supply and sanitation plants, transport systems, and buildings.

Under the Letter of Intent, ADB and the Ministry of the Environment will also deepen their collaboration in fields such as air quality management, strengthening enforcement of environment laws, and responding to climate change.

Published on 27th June, 2014  www.dawnpost.com


OPEC daily basket price stood at $109.63 a barrel Wednesday, 25 June 2014

The price of OPEC basket of twelve crudes stood at 109.63 dollars a barrel on Wednesday, compared with $109.62 the previous day, according to OPEC Secretariat calculations. (View Archives)

The new OPEC Reference Basket of Crudes (ORB) is made up of the following: Saharan Blend (Algeria), Girassol (Angola), Oriente (Ecuador), Iran Heavy (Islamic Republic of Iran), Basra Light (Iraq), Kuwait Export (Kuwait), Es Sider (Libya), Bonny Light (Nigeria), Qatar Marine (Qatar), Arab Light (Saudi Arabia), Murban (UAE) and Merey (Venezuela).

Published on 27th June, 2014  www.dawnpost.com

OPEC share of world Crude Oil Reserves 2012

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