G8 and Asian powers concerned on oil, fear recession
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Eleven nations that guzzle nearly two-thirds of the world's energy voiced concern on Sunday over record oil prices as host Japan warned the world could plunge into recession.
The statement came after energy ministers from the Group of Eight (G8) industrial powers met in the northern Japanese city of Aomori first on their own, and then with officials from China, India and South Korea.
“The 11 countries shared concern about the soaring crude oil prices,” Japan's Energy Minister Akira Amari, the host of the meeting, said, reading from a joint statement.
He said that the countries also agreed to set up a new framework called the International Partnership for Energy Efficiency Cooperation (IPEEC) under which they can share ideas about how to save energy.
“If we leave this situation as it is, it could lead to a recession of the world economy,” Amari said earlier in his opening address.
“Ensuring energy security, including stability of the oil market, has become one of the top priorities for every country,” Amari added.
The meeting came after oil prices on Friday posted their highest ever one-day gain of nearly 11 dollars, hitting a new record of 138.54 dollars per barrel in New York trade.
Oil prices have soared five-fold since 2003 due to a variety of factors including turbulence in the Middle East and rising demand in emerging economies such as China and India.
The European Union's Energy Commissioner Andris Piebalgs warned that high oil prices were a fact to be reckoned with and that major economies needed to come up with alternative energy.
“The era of cheap energy seems to be over and no economy should gamble on a potential return to low prices,” Piebalgs said.
The G8 groups Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
Lawmakers from US President George W Bush's Republican Party on Friday blocked a bill before Congress that would have forced major curbs by industry in greenhouse gas emissions.
Republican senators said the "cap-and-trade" legislation would cause more hardship for an economy already struggling to cope with record oil prices.
The United States is the only major industrial nation to reject the Kyoto Protocol mandating emission curbs. Japanese Prime Minister Yasuo Fukuda is expected on Monday to announce a cap-and-trade system to help the country come up to speed in meeting its own commitments.
The 11-nation talks came a day after the United States and Asia's four largest powers in a separate round of talks supported a gradual reduction in politically sensitive fuel subsidies.
China and India, however, made clear they would not act soon, fearing repercussions for the most vulnerable segments of society.
The statement came after energy ministers from the Group of Eight (G8) industrial powers met in the northern Japanese city of Aomori first on their own, and then with officials from China, India and South Korea.
“The 11 countries shared concern about the soaring crude oil prices,” Japan's Energy Minister Akira Amari, the host of the meeting, said, reading from a joint statement.
He said that the countries also agreed to set up a new framework called the International Partnership for Energy Efficiency Cooperation (IPEEC) under which they can share ideas about how to save energy.
“If we leave this situation as it is, it could lead to a recession of the world economy,” Amari said earlier in his opening address.
“Ensuring energy security, including stability of the oil market, has become one of the top priorities for every country,” Amari added.
The meeting came after oil prices on Friday posted their highest ever one-day gain of nearly 11 dollars, hitting a new record of 138.54 dollars per barrel in New York trade.
Oil prices have soared five-fold since 2003 due to a variety of factors including turbulence in the Middle East and rising demand in emerging economies such as China and India.
The European Union's Energy Commissioner Andris Piebalgs warned that high oil prices were a fact to be reckoned with and that major economies needed to come up with alternative energy.
“The era of cheap energy seems to be over and no economy should gamble on a potential return to low prices,” Piebalgs said.
The G8 groups Britain, Canada, France, Germany, Italy, Japan, Russia and the United States.
Lawmakers from US President George W Bush's Republican Party on Friday blocked a bill before Congress that would have forced major curbs by industry in greenhouse gas emissions.
Republican senators said the "cap-and-trade" legislation would cause more hardship for an economy already struggling to cope with record oil prices.
The United States is the only major industrial nation to reject the Kyoto Protocol mandating emission curbs. Japanese Prime Minister Yasuo Fukuda is expected on Monday to announce a cap-and-trade system to help the country come up to speed in meeting its own commitments.
The 11-nation talks came a day after the United States and Asia's four largest powers in a separate round of talks supported a gradual reduction in politically sensitive fuel subsidies.
China and India, however, made clear they would not act soon, fearing repercussions for the most vulnerable segments of society.
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