Pacific Rim officials discuss oil prices, supply

Pacific Rim officials discuss oil prices, supply

Associated Press, Gyeongju, South Korea

Pacific Rim energy officials on Tuesday began discussing the
impact of soaring oil prices, energy security and alternative
sources of fuel a day before Cabinet ministers from the region
hold their first ever talks with OPEC officials.

Senior officials from the 21-member Asia-Pacific Economic
Cooperation forum, which includes energy producing nations
Canada, China, Indonesia, Mexico, Russia and the United States as
well as resource-poor economies like Japan and South Korea, are
here to prepare for the 7th APEC Energy Ministers' Meeting in the
southeastern Korean city of Gyeongju.

APEC's economies account for about 60 percent of global energy
consumption and import 77.2 percent of the crude oil produced by
OPEC, according to Bong-hyeon Joo, director general at the energy
and resources policy bureau of South Korea's Ministry of
Commerce, Industry and Energy.

Imbalances as well as alternative energy resources were likely
to be topics, said senior officials, who were finalizing a joint
statement to be issued by the energy ministers at their meeting.

"How can we keep the energy supply stable? How can we
stabilize supply and demand," Joo said regarding the key issues
to be addressed.

The energy meeting is usually held every two years, but
because of surging oil prices member economies have scheduled one
for this year even after a 2004 meeting in Manila. However, many
APEC members, including Japan and the United States, are sending
deputies to stand in for their energy ministers.

The gathering marks the first time that officials from OPEC
will attend.

Adnan Shihab-Eldin, OPEC's acting secretary-general, will give
a speech on Wednesday, and the meeting that day will include what
is billed as a business dialogue between OPEC and APEC members.

Surging oil prices, which rose above US$70 a barrel in late
August, have caused worries about their possible drag on global
growth.

Prices have since pulled back though concerns remain about the
pace of recovery following hurricanes Katrina and Rita in the
United States and whether supplies will be adequate going into
the Northern Hemisphere winter, when demand for heating oil
peaks.

"The possibility of making use of alternative energy like bio-
fuels" such as ethanol was also likely to be considered, said
Boonrod Sajjakulnukit, an official at Thailand's Energy Ministry.

APEC finance officials at a meeting last month said sustained
high energy prices are a risk to economic growth in the region
and called for more investment in oil production and refining
capacity, stepped up conservation efforts and the development of
renewable energy sources.

At that time, finance ministers or their deputies and the
heads of the International Monetary Fund and Asian Development
Bank discussed oil and energy issues at a two-day meeting on
South Korea's southern Jeju Island.

APEC, launched in 1989, has set as its main goal boosting
trade among its members, with the ultimate aim of establishing a
free trade area by 2020. In recent years it has expanded its
scope to include discussions of issues such as corruption and
combating terrorism.