World Petroleum Congress opens under waves of oil price surge

South African President Thabo Mbeki Sunday night joined some 4,000 oil giant executives and senior government officials at the World Petroleum Congress which opened in Africa for the first time in its 72 years history.

Addressing delegates from 62 member countries, President Mbeki called for the stabilization of world oil market, noting that the poor countries and the poor people suffer twice than the rich countries and rich people on the earth.

He expressed his hope that the 18th World Petroleum Congress will serve as the passenger of hope and contribute to the poverty alleviation. Ensuring inhabitants of oil-rich yet poverty stricken African countries receive the benefits of their natural resources will come under the spotlight of the congress in Johannesburg next week.

Eivald Roren, president of the World Petroleum Council, said that fossil fuels will continue to dominate global energy use, accounting for 85 percent of the increase in world primary energy demand.

He said that oil will remain the single largest fuel in the next few decades. The International Energy Agency IEA and the Organization of Petroleum Exporting Countries OPEC forecast that oil demand will grow to 107 million barrels a day in 2020 and 121 million barrels a day by 2030.

However, he said, "People in general have not received the benefits of being hosts of natural resources."

He said there were important questions to be asked about revenue transparency. "Do companies talk about the money they are paying and do governments inform about what they receive?"

Minerals and Energy Minister Lindiwe Hendricks said it was not only the outside world's responsibility to make sure resources benefit the people of those countries.

"In most African countries, exploration companies are owned by international companies with the finance and technology which ensure profitability," Hendricks said.

Meetings between African oil ministers had recently seen a proposal put on the agenda for a Pan African energy company which would put African countries in control of their resources.

Sipho Mkhize, CEO of host company PetroSA, said South Africa could look forward to intensive exploration in deeper waters, which had never been done before.

Sustainability of the environment would see pilot projects on the table such as ways to safely and permanently store carbon dioxide instead of putting it into the earth's atmosphere.

The conference is the most important event on the petroleum industry's calendar and this year's congress will be keenly watched by industry observers around the world in light of recent developments in the oil sector.

This promises to be a groundbreaking event, with many of the world's most respected figures in the petroleum industry gathering to apply their minds to finding solutions to the challenges facing the industry.

South Africa is the host country and PetroSA the host company, while the National Oil Corporation of Libya, Nigerian National Petroleum Corporation, Sonangol (Angola) and Sonatrach (Algeria ) are the co-hosts of this most prestigious industry, and truly African, event.

With giant proven oil and natural gas resources, many African countries such as the host and co-host countries, are already major energy suppliers in world terms, whilst new energy powers such as Egypt and Equatorial Guinea are experiencing rapid growth,and hotspots such as Mauritania are emerging as exploration pushes new frontiers.

The 18th WPC will, therefore, provide a platform from which to attract direct foreign investment into the upstream and downstream sectors of the continent's petroleum industry, and increase opportunities for capital injections into technology development and techniques for effective prospecting and exploration, especially in the area of deepwater drilling.

Two exhibitions will run parallel with the 18th WPC: the Southern African International Oil & Gas Exhibition 2005 promises to be the largest such exhibition the continent has ever seen, while the Global Business Opportunities Center 2005 is reserved solely for the WPC member countries' National Committee, where the exhibiting host and co-host companies will be joined by some of the most prestigious national oil companies worldwide.

The World Petroleum Congress was founded in London in 1933. It is an international, unbiased, non-political organization that provides a forum for discussing world issues facing the oil and gas industry.

The WPC is dedicated to scientific advances in the oil and gas industries, technology transfer and to promote the management of the world's petroleum resources for the benefit of mankind.

Every three years, the World Petroleum Congress offers an international oil and gas congress hosted by one of its member countries. Trends and outlooks integral to the future success of the industry are the focus of discussions, forums and presentations.

Delegates explore international business opportunities, exchange ideas on global issues, network and share the latest information on technology, business management and industry developments.

Source: Xinhua