As a key energy supplier in the Asia-Pacific region and net oil importer, Australia is acutely aware that our economic prosperity, and the prosperity of all consumers and producers, will be greatly affected by the way these energy security challenges are addressed. The global economic slowdown has seen some moderation in demand, but we can’t afford to relax. We must, as a matter of priority, take appropriate steps to deal with these challenges. We need to do this together. An effective consumer-producer dialogue founded on a clear understanding of our mutual inter-dependence can become a driving force for cooperation to help mobilise timely and effective global action.

Efficient, transparent and competitive regional and global energy markets are central to meeting these challenges in a way that delivers cleaner, more reliable, adequate and affordable energy. Transparent markets offer the best means of attracting necessary investment at least cost, particularly in the wake of the global economic slowdown. They also create strong incentives for energy efficiency and support the timely and effective roll-out of innovative, low-carbon energy technologies.

The International Energy Forum (IEF) is already making an important contribution to promoting transparent and efficient global oil markets through the Joint Oil Data Initiative. This work is important and I encourage the IEF to continue strengthening the quality and coverage of its oil data.

Improved transparency is a good start, but more is needed. The global financial crisis must not be allowed to give rise to a retreat to protectionism. Consumer and producer governments need to work together to create the stable, predictable and effective policy, legal and regulatory frameworks needed to build resilient global energy markets that can deliver timely investment. Undue barriers to energy trade and investment need to be identified and removed where possible. Related challenges, including improving cooperation between international oil companies and national oil companies, and addressing looming skill shortages, will also need to be addressed. We look forward to reviewing the proposals being developed by the Expert Group in this context.

Continued large-scale use of fossil fuels by developing economies is an inescapable reality for the foreseeable future. New technologies that reduce associated carbon emissions, such as carbon capture and storage (CCS), need to be developed and deployed, along with the full suite of renewable technologies. Energy efficiency also has an important role to play in reducing global greenhouse gas emissions.