Yukari Yamashita, Board Member & Director of Energy Data and Modelling Center, The Institute of Energy Economics Japan (IEEJ) addresses the Oil Pricing and Outlook roundtable by The Institute of Energy Economics, Japan (IEEJ)
By Grace Yip
Oil prices will remain low even as global energy consumption rises but there is a risk of supply and demand imbalances resulting from the absence of adequate investment, Yukari Yamashita, board member and director of the Energy Data and Modelling Centre at the Institute of Energy Economics Japan (IEEJ), said on Thursday at Singapore International Energy Week 2015.
“Energy consumption in the world will increase, especially in Asia,” she said during a roundtable discussion on oil pricing and outlook hosted by IEEJ.
In its 2015 report, the IEEJ said Asia will be the fastest-growing region in the world for energy consumption. Coal remains the preferred energy source in Asia, followed by oil and natural gas.
Dr Ken Koyama, chief economist and managing director of the IEEJ, agreed with Yamashita’s assessment of potential imbalances.
“There is a lot of uncertainty over demand” and “there is a difference between demand and consumption”, he said. Koyama noted that China is building up its oil inventories with increased crude imports but this does not equate to a rise in consumption.
According to Platts, China had a crude stock build for the fourth straight month in September at 784,000 barrels per day.
The panel acknowledged that the oil market is also influenced by geopolitical factors, improvements in low carbon technology and increases in unconventional supplies.
To mitigate oil price volatility, the IEEJ is encouraging governments to pursue energy diversity, including continued investment in renewables and other energy sources. In addition, it said, governments and policy makers must promote dialogue to better understand oil producers and consumers, which will ensure sustainable development of the energy sector.
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.
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