OECD countries face growing dependence on imported oil...OECD countries face growing dependence on imported oil...

 
 

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OECD countries face growing dependence on imported oil and gas

Demand for imported oil and gas is rising

Helsinki, 30 June 2003 - The industrial world's growing dependence on imported oil and natural gas makes suppl y security the main energy challenge for the OECD countries in the 21st century, a business conference here was told.

Business will have to cope with risks associated with energy supply restrictions, rising energy prices and increasing uncertainty, Swedish energy expert Professor Tor Ragnar Gerholm said.

Uncertainty about energy prices will present an even greater risk for business than the price increases themselves, he added.

Speaking at a conference called by ICC Finland - the Finnish national committee of the International Chamber of Commerce - and Energiafoorumi, Professor Gerholm said the dependence of OECD-Europe on imported oil would increase from 50% to 85%, that of OECD countries in the Far East to 100%, and that of the United States to 66% by 2020.

Professor Gerholm predicted that by 2020 dependence of European OECD countries on imported natural gas would grow from the current 30% to 70%.

He was presenting an ICC report "Business Perspectives on Energy. The Challenge of the 21st century", of which he was the main author. Recalling that several European countries intended to abandon use of nuclear power, he said that hard coal and nuclear energy were the only real alternatives to oil and gas.

Juhani Santaholma, President of the Finnish Energy Industries Federation, who headed the team that drew up the ICC report, said one of its main messages was that all current forms of energy are needed. They must remain viable options throughout the 21st century.

He said any shift from current energy systems to new systems would take decades. This was, for example true of wind power, even though this energy source enjoyed extensive political and economic backing.

Mr Santaholma said industrialized countries must develop new advanced utilization technologies for coal to prevent acidification and to reduce carbon dioxide emissions.

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