High-level experts meet for the 8th joint IEA-IEF-OPEC workshop on the interactions between physical and financial energy markets
[Joint Press Release] The International Energy Agency (IEA), the International Energy Forum (IEF) and the Organization of the Petroleum Exporting Countries (OPEC) met today via video conference for the 8th joint IEA-IEF workshop -OPEP on the interactions between physical and financial energy markets.
The high-level workshop was co-chaired by the Secretary General of OPEC, HE Mohammad Sanusi Barkindo, with Mr. Joseph McMonigle, Secretary General of the IEF, and Keisuke Sadamori, Director of the Office of the Markets of the energy and security at IEA. The workshop brought together more than 110 participants.
In his opening remarks, HE Barkindo said, “It is exactly these types of close collaboration that we will need to see more of in the weeks and months to come as this industry continues to face the challenge of adapting to changing market conditions. paradigm that are currently occurring. place.”
The Secretary-General reminded participants that there is only a little over a week left before the highly anticipated United Nations Climate Change Conference (COP26) in Glasgow and that investment will be one of the decisive issues. for the industry in the years to come. He added that “oil and gas will continue to play an important role in the global energy supply in the medium and long term” and that “the satisfaction of these growing energy needs will depend on a constant flow of industrial investments”, which would also be “essential for advancing innovation and technology that will further improve the environmental footprint and reduce emissions”.
Mr McMonigle raised concerns about energy investments, noting that global demand is rebounding after the COVID-19 pandemic, but private sector investment has yet to respond adequately. This could lead to price fluctuations that will impact market stability and derail a sustainable and inclusive recovery from the pandemic, he noted. The complex dynamics of physical and financial energy markets have been better understood, better regulated and more transparent since the three organizations launched the dialogue in response to the global financial crisis more than a decade ago. Today’s trilateral work program discussions have provided a better understanding of market dynamics and will help producers and consumers assess whether more concerted action is warranted, he added.
Mr. Sadamori stressed that the world is not investing enough to meet its future energy needs. Transition-related spending has gradually increased, but remains well below what is needed to sustainably meet the growing demand for energy services. The amount currently spent on oil appears to be tilted towards a world of stagnant or declining demand. Increased spending on clean energy transitions paves the way, but it needs to happen quickly, or global energy markets are likely to be volatile in the years to come.
Sadamori added that “an efficient and orderly transition will be essential – not only to meet international climate goals, but also to avoid serious supply disruptions and destabilizing price volatility along the way.”
Discussions during the videoconference were structured into two sessions, focusing on financial markets, investing and the impact of ESG dynamics on the upstream oil industry.
The first session focused on “Investment Opportunities in the Petroleum Industry in Light of Recent Trends in the Global Economy and Financial Markets”, which provided an overview of how investors from different classes of assets approach investing in energy and how this translates into the outlook for oil markets. The second session looked at the “Impact of acceleration towards ESG (Environment, Social, Governance) on investment in E&P activity”.
The joint workshop is part of the trilateral work program established by the three organizations and endorsed by energy ministers at the 12th International Energy Forum in Cancun, Mexico, in March 2010. Since then, joint meetings AIE-IEF-OPEC covering the evolving interconnections between physical and financial energy markets have become a unique high-level dialogue event that brings together a wide range of market participants to discuss issues that are not addressed in other high level forums. In order to encourage an open and informative discussion, the workshop was conducted in accordance with Chatham House Rule.
In conclusion, the three organizers thanked all participants for their engaged and frank discussions on these crucial and topical issues, and looked forward to convening the next joint workshop in 2022.
OPEC – Organization of the Petroleum Exporting Countries published this content on 21 October 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on October 21, 2021 02:43:06 PM UTC.