RIYADH, Saudi Arabia – IEF Secretary General Joseph McMonigle emphasized that energy security cannot be bought by some countries at the expense of others, in an address to energy ministers from the Group of 20 leading world economies in Bali.
The Energy Transitions Ministerial Meeting, hosted under the G20 Presidency of Indonesia, took place against the backdrop of an energy crisis that has driven prices to historically high levels amid intense global competition for scarce supplies.
“The worst is likely still ahead for energy markets, although we are already seeing severe disruptions across the world,” Mr McMonigle told the ministers, pointing to spiking prices and volatility in energy markets.
“Energy security is not only a near-term concern, and it cannot be bought at the expense of others. It requires investment in long-term partnerships and in reliable and diversified energy supplies,” he added.
In a presentation on the outlook for energy markets, Mr McMonigle showed how the current energy market volatility dwarfs previous periods in history, that oil markets remain tight despite the recent downturn in prices and that investment in upstream oil and gas needs to rise to $525 billion a year to meet expected demand, according to a recent analysis by the IEF and S&P Global.
At the end of the two-day meeting, G20 ministers endorsed a “Bali Compact”, a series of principles for accelerating clean, sustainable, just, affordable, and inclusive energy transitions, which will be endorsed in the G20 leaders at a summit to be held in November.
Indonesia also put forward a Bali Energy Transitions Roadmap as an initiative to strengthen international cooperation and energy architecture.
While in Bali, Mr McMonigle held bilateral meetings with ministers and officials including HE Chris Bowen, Minister for Climate Change and Energy of Australia; Mr Kei Takagi, Parliamentary Vice-Minister for Foreign Affairs, Japan; HE Rob Jetten, Minister for Climate and Energy Policy of the Netherlands; HE Haitham Al Ghais, OPEC Secretary General; HE Fatih Dönmez, Minister of Energy and Natural Resources of Turkey; Ms Armida Alisjahbana, Executive Secretary of the United Nations Economic and Social Commission for Asia and the Pacific; and Minister Tan See Leng, Second Minister for Trade and Industry of Singapore.