By Tan Wee Beng
Countries that produce and consume oil must get better at working together to reduce volatility in prices that ultimately benefits no one, panellists said on Monday at Singapore International Energy Week 2015.
The sharing of information could help prevent “unnecessary price fluctuations”, said Masakazu Toyoda, chairman and chief executive officer at The Institute of Energy Economics, Japan.
The panellists said they did not expect any sharp rebound in oil prices in the short term but saw a rise further out due, in part, to an expected increase in demand driven by developing countries that are not part of the Organisation for Economic Co-operation and Development.
But depressed oil prices are not entirely gloomy for producers, which are using the opportunity to cut costs by increasing efficiency, the panellists said.In the short term, there could be a “double-digit reduction in break-even prices for new productions coming online”, said Tor Martin Anfinnsen, senior vice president for marketing and trading at Norway’s Statoil.
In the United States, “those who reduced the costs the most and restructured their financing, who have hedged in a more lucky or smarter way long term, would be able to survive and continue on”, said Amos Hochstein, special envoy and coordinator for international energy affairs in the Bureau of Energy Resources at the U.S. State Department.
About Singapore International Energy Week (SIEW)
In its 8th edition, Singapore International Energy Week is the premier platform in Asia for energy insights, partnerships and dialogue, bringing together the world’s leading conferences, exhibitions and roundtables in one week and one location. SIEW enriches the global energy conversation by convening political, business, academic and energy industry thought-leaders to define and advance the world’s energy challenges, solutions and actions across the spectrum of oil and gas, clean and renewable energy, and energy infrastructure financing.
Please visit www.siew.gov.sg for more information.
About the Energy Market Authority
The Energy Market Authority (EMA) is a statutory board under Singapore’s Ministry of Trade and Industry. Our main goals are to ensure a reliable and secure energy supply, promote effective competition in the energy market and develop a dynamic energy sector in Singapore. Through our work, we seek to forge a progressive energy landscape for sustained growth.
Please visit www.ema.gov.sg for more information.