World Bulletin / News Desk
Speaking at the World Energy Congress, of which Anadolu Agency is the Global Communication Partner for 2016, Al-Falih stated that the "world’s responsible producers" are trying to balance demand and supply responsibly to ensure the industry is operating efficiently.
"I spoke in June about the rapidly emerging rebalancing, I was seeing the convergence of supply and demand from a very clear divergence in 2014 where supply from one region alone in North America was growing much faster than global demand," he said.
Al-Falih stated that it is reasonable to consider oil prices reaching $60 per barrel by the end of the year.
"We are in October, and we moved from $40 to $50. Only God knows where we are going to be by the year-end. I look at supply demand global inventory data and talk to people like [Executive Director of the International Energy Agency] Fatih Birol about the consumer side perspective as well as investor countries and developing economies. We make sure that we calibrate OPEC and non-OPEC producers and our decisions are to balance the interests of all stakeholders. Most importantly the interests of the billions of people around the world," he said.
He highlighted the role of OPEC in coordinating the decisions for the balance in supply and demand.
"I am meeting with Russia's Energy Ministry Alexander Novak in Istanbul in the next few days. We will discuss reactions to what happened in Algeria and the [OPEC] coordination committee will meet in the next couple of weeks to look at the role of supply and demand in that cooperation agreement. I look forward to Russia playing a constructive role in the global energy stage," he said.
OPEC member countries met in Algeria for an unofficial meeting at the end of September where they agreed to cut oil production down to a range of 32.5 and 33 million barrels per day effective from November after the next OPEC meeting.
Al-Falih noted that many non-OPEC countries have indicated their eagerness to work with OPEC countries.
In his speech, Al-Falih explained the challenges in the energy sector and said:
"We should draw confidence and indeed aspiration as we look ahead at challenges and the frontiers that we are trying to embrace. We can also acknowledge that the future challenges are larger and more complex. I am confident our generation will succeed as our predecessors did, providing the future generation with a more robust, responsible and reliable global energy system."
He hailed Turkey as a significant energy player in its own right. He added that it is also an indispensable gateway linking the energy rich regions of the Middle East, Central Asia and Russia to energy thirsty Europe.
"Turkey has a prominent role in the world’s geopolitical scene, an emerging powerful economy, which is so undeniable," he said.
"I would also like to thank Turkey and Istanbul for its gracious hospitality and great nation and great people. There is no more appropriate location to convene [for the WEC]," he concluded.