The top industrialized nations in the world and the leading oil consuming nations at the G-8 meeting in Aomori, Japan, have pledged to combat the skyrocketing energy prices by speeding up investment in new technologies and increasing efficiency, at the same time urging oil producers to increase production.
The G-8 countries consist of countries like Britain, the United States, Japan, Germany, France, Italy, Canada and Russia. Energy ministers from the G-8 countries along with countries like China, India and South Korea, expressed their distress over record oil prices. The common consensus was that stability in the market is beneficial for both the consumers as well as the producers. The main discussion was on how to expand the energy sources so that they could control both the rising demand for oil and the emissions of greenhouse gases that are causing global warming.
Samuel Bodman the U.S. Energy Secretary believes that the answer lies in the expansion of investment all around the world. It means endorsing investment in renewable energy and other unconventional energies technologies, in addition to the expansion of the conventional hydrocarbon resources.
The 11 nations at the meeting, account for 65 percent of the world's energy expenditure. While the meeting was going on, the price of oil jumped 8 percent to 138.54 dollars at the New York Mercantile Exchange. They vowed to start 20 demonstration projects by the year 2010 on carbon capture and storage, which can let the power plants catch the emissions and insert them into underground storage places.
However, there were clear divisions on the subject of expansion of nuclear energy. The cautiously worded joint statement required assurances on security and safety of the nuclear materials, nevertheless quite a few countries said they were keen on building new reactors.
British secretary of state for business enterprise and regulatory reform, John Hutton believes that this is the beginning of a new nuclear age. However, The International Energy Agency said the world needs to build 32 nuclear power plants every year till 2050 to slash the greenhouse emissions by 50 percent. Germany however maintained its stand to phase out nuclear power.
The G-8 countries along with China, South Korea and India have also set up the International Partnership for Energy Efficiency Cooperation to encourage best methods in conserving energy. As the participants to the meet ask for more oil, Chakib Khelil, the president of OPEC held that no increase in production can happen until the group meets on 9th September.
The countries meet at a time when U.S and Japan are facing increasing unemployment due to lay offs made by companies to adjust to the oil crisis. If the situation is left unaddressed it may lead to a global economic recession.
The countries, though, differed over the subject of oil subsidies. The International Energy Agency has anticipated that oil subsidies in China, the Middle East and India totaled approximately $55 billion in 2007.
The United States advised countries such as China to lower their oil supports that hold up the demand for oil, at the same time poorer developing countries said eliminating subsidies can set off economic and political unrest.