Secretary-General of Organization of Arab Petroleum Exporting Countries (OPAEC) Abbas Naqi denied on Wednesday the reports that the world's oil reserves were on decline.
Speaking to KUNA here, Naqi said: "All estimates show that the oil reserves in many parts of the world, notably the OAPEC member countries and the Arabian Gulf region, are on the increase." He highlighted the importance of maintaining strong demand on oil in the medium and long runs and pumping billions of US dollars into investment in the oil industry particularly the exportation, refinery and petrochemical projects.
"Some oil importers impose taxes, sometimes high, on oil, and the other fossil fuel, imports which arouses our concern," he said.
"Oil is not a depleting source of energy. On the contrary, it will remain the major source despite the campaigns of some economic blocs to control reliance on it under the pretext of environment protection," Naqi affirmed.
"We hope that the enforcement of the United Nations Framework Convention on Climate Change (UNFCCC) and the UN Climate Change Conference, due in Copenhagen between December 7 and 18 would not lead to more taxes on fossil fuel. "Such a move could result in negative impacts on demand, thus shrinking the revenues and hampering investment in the oil sector as well as the overall development process in the oil exporting countries in the long run," he cautioned.
"How can the oil exporters realize sustainable development without sufficient revenues?" he wondered.
As for the environment issue, Naqi said: "Some oil importers have conflicting approaches to the use of fossil fuel." "While they impose taxes on oil imports, they offer large subsidy to their coal industries which are more polluting than oil," he noted.
OAPEC and the Organization of the Petroleum Exporting Countries (OPEC) keep close contacts to coordinate their stances in the international forums on climate change.
The representatives of both organizations meet on a daily basis to discuss issues of common concern, he went on to say.
Regarding the prices, the OAPEC chief said a fair price is conducive to economic growth and is in favor of producers and consumers alike.
"A fair price can ensure cash supplies for producers to invest in the oil sector and maintain sufficient oil supplies to the markets," he said.
The OAPEC will convene its 83rd ministerial meeting in Cairo on December 5 under the chairmanship of Egyptian Minister of Oil Sameh Fahmi.
The agenda of the meeting includes the adoption draft budget of the organization for 2010, the honoring of the winners of the OAPEC scientific award for 2008, Naqi disclosed, noting that the theme of the award is the extraction and storing of dioxide carbon.
The meeting will be preceded by the 125th meeting of OPAEC's executive office on December 2-3, Naqi added. - Kuna