World Petroleum Congress

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July 3, 2008

19th World Petroleum Congress, Madrid, Spain (Photo: 19wpc.com)

Editor's Note:

On the heels of the Jeddah Energy Meeting called by King Abdullah for global consumers and producers to address the challenge of soaring oil prices the triennial World Petroleum Congress -- the "Olympics of the oil and gas industry" -- met in Madrid. The conference, organized by the 60-member World Petroleum Council, provides a forum to address global challenges and issues facing the industry.

This SUSRIS IOI provides press reporting from the Congress and links to related items as well as a link to the SUSRIS Special Section on the energy crisis.

Perspective:

Seeking Oil Scapegoats - The Motley Fool
"..You're so vain, you probably think this article is about you -- When something as beloved as gasoline is priced out of reach, consumers, producers, investors, and governments alike quickly start acting defensive. It's only natural -- everybody wants a solution, but nobody wants to be the problem. The president blames the Saudis, the Saudis blame the speculators, the speculators blame consumers, consumers blame the oil companies, and the oil companies blame the government. Alas, we're left with are discouraging words from our fearless leaders: There's no quick fix. Hogwash. You want to find a quick solution to the oil crisis? Here's step one: Stop using so much oil.." [more]

19th World Petroleum Congress, Madrid, Spain (Photo: 19wpc.com) High oil prices worry Riyadh - AFP/Arab News
"..MADRID: The World Petroleum Congress wrapped up yesterday in the shadow of record crude prices, with concern growing about a third oil shock but with little consensus about what to do about it. After four days of meetings between the leading political and corporate energy bosses here, divisions between consumer and producer countries on what or who is to blame for the high oil prices appeared to sharpen. Saudi Arabia, the world�s leading oil exporter, expressed concern yesterday about new records for benchmark crude of over $146 a barrel and again said it was committed to dialogue between consumers and producers. Those discussions show no sign of finding a solution to market tension, however, with both sides citing different reasons: consumers are clamoring for higher supplies while producers blame financial speculators and the falling dollar.." [more]

New record crude prices up pressure on oil industry - AFP/Google
"..Oil prices surged to new highs Monday as leading figures from the energy industry gathered in Madrid amid growing public anger at the high cost of fuel and increasing concerns about inflation. A week after failing to deflate the price of crude at a summit in Saudi Arabia, the world's biggest oil producers and consumers met at the World Petroleum Congress (WPC) to renew their search for ways of calming tense markets. Pressure mounted Monday for a response as crude traded close to 144 dollars per barrel for the first time and 12-month inflation in the eurozone jumped to a record 4.0 percent in June.." [more]

Get used to high oil prices: King - Arab News
"..JEDDAH: Custodian of the Two Holy Mosques King Abdullah said yesterday that the current oil price was cheap compared to prices of alternative energy products available in the world and called upon people in consuming countries to adapt with rising oil prices. �We have nothing to do with the current sharp increase in oil prices,� the king said in a wide-ranging interview with Kuwait�s Assiyassah Arabic newspaper, and asked consuming countries to reduce tax to cut prices. �Consuming countries should reduce taxes of petroleum products if they really wanted to soften the burden on consumers,� he said. King Abdullah attributed the hike in prices of some essential commodities in Saudi Arabia to developments in other parts of the world. However, he said Saudi officials have viable solutions to tackle the situation.." [more]

No Gloating for Big Oil - Time.com
"..In a week when oil prices shot to $143 a barrel, the mood at the World Petroleum Congress in Madrid is surprisingly somber. Perhaps the oil company CEOs and OPEC ministers, gathered for the biggest conference in the industry's calendar, are feeling besieged by the relentless drumbeat of public outrage.. ..At Monday's opening plenary, British Petroleum CEO Tony Hayward called the suggestion that speculation was behind the doubling of crude prices in the past year a "myth," and instead blamed geopolitics, a decline in Russian production and increased demand for the crunch. "Supply is not responding adequately to rising demand," he said. "The problem is above ground, not below it." ExxonMobil CEO Rex Tillerson echoed the last part of Hayward's equation: "Look, it's hard for us to fully understand what's behind the high prices � there's a decoupling from historic indicators. But clearly, demand is driving it.".." [more]

Energy chiefs absolve oil speculators - FT.com
"..Speculators are not to blame for the steep rise in oil prices, executives of three of Europe's biggest energy companies said yesterday, adding to a growing industry consensus that tight supply and high demand are the culprits. Opec ministers have promoted the idea that speculators are pushing up prices as part of attempts to deflect blame for the recent doubling in the cost of crude. Yesterday prices hit a fresh record high of almost $144 a barrel. US lawmakers have lent credibility to the argument that speculators are at fault by launching hearings on the matter.." [more]

Key figures debate what to do about rising oil prices - AP/chron.com
"..As oil set a new record, top industry executives and a senior EU official on Monday urged the world to pull together in the face of skyrocketing energy prices, while acknowledging that � even if it does � costly crude is here to stay for years. The comments to the World Petroleum Congress by EU Energy Commissioner Andris Piebalgs and the heads of Shell, BP and Spanish Repsol reflected a key theme of the four-day meeting � how to bring order into volatile and ever pricier oil and related energy markets.." [more]

Related Items:

U.S.-Saudi Relations and Global Energy Security Conference (2004)

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