BRISBONE: Leaders of the world’s most powerful economies have agreed energy security must become a G20 priority, noting that stability in the markets is “critical” to their growth.
The long-term stability of oil markets is seen as crucial to ensuring the success of reforms promised by the G20, so that it can meet its aim of lifting its combined economic growth by 2.1 per cent over the next five years.
The leaders’ summit had a session dedicated to global energy issues for the first time, with G20 members representing more than 80 per cent of the world’s energy consumption, 60 per cent of oil and gas production and over 90 per cent of coal output. “Increased collaboration on energy is a priority,” they said in a summit declaration.
“Global energy markets are undergoing significant transformation. Strong and resilient energy markets are critical to economic growth.” They asked energy ministers to meet and report back in 2015 on options that could feed discussions on reform of the international energy system.
A report in The Australian newspaper on Saturday said there could ultimately be a new agency to protect against oil and gas supplies being exploited as foreign policy weapons, while giving a greater voice to rising economies.
If approved, the report said the agency would lay down principles of governance for all participants in energy markets and would sit above both the OPEC cartel and the International Energy Agency (IEA).
However, there was no mention of any specifics in the G20 communique. “Energy is now at the heart of the G20’s agenda and G20 energy ministers will meet for the first time next year to take this work forward,” said Australian Prime Minister Tony Abbott, the 2014 host. Turkey takes over for 2015.
The emergence of energy as a central G20 platform comes with oil prices diving well below the $80-per-barrel mark.
