Uchenna Izundu
International Editor
LONDON, Jan. 17 -- Stable global energy supplies will be a major risk area for countries in 2008, according to a report published by the World Economic Forum (WEF), signaling that the issue is facing the highest levels of political and economic uncertainty in a decade.
WEF, speaking in advance of its annual event in Davos later this month, said that new thinking and concerted action by business leaders and public policymakers were critical to address the problem. Fossil fuel supplies are expected to become tighter over the next 2 decades, and more price shocks are likely to happen.
The report—produced together with a group of insurers and finance experts—said that securing energy supplies and cutting carbon emissions simultaneously will be difficult to achieve.
"With predictions of a 37% increase in oil demand over current levels by 2030, the report sees limited scope for a fall in energy prices over the next decade," WEF reported. "This may be good news for oil and gas producers, but it creates an inherent mismatch between those who bear risk and reward, which should be addressed through better dialogue at all levels," the group added.
David Nadler, vice-chairman of Marsh & McLennan Cos. USA, one of the contributors, said: "A move towards a forward-looking regulatory framework is needed in order to ensure long-term economic viability. This framework should seek to unlock investment and innovation in cleaner energy and, ultimately, deliver an economic price for carbon."
Contact Uchenna Izundu at [email protected].
