In conference where 21 Asian nations participated:

Asian energy ministers expect more demand on oil, decrease in supply in some Asian regions

Saudi oil minister asserts kingdom's commitment to pump oil into global markets

Saudi education minister sponsors Advanced Technologies Forum

Minister of culture and information opens economic information forum in Riyadh

OPEC and Asian energy officials called Sunday for new oil investments and tougher measures to combat speculation in crude markets that some have argued helped fuel last year's oil price spike.

The call came during a one-day energy meeting in Tokyo to discuss volatility in the world oil market. Officials are concerned about another price spike once the world emerges from the global recession. The slowdown has sharply eroded oil demand and driven crude prices down about 65 percent from mid-July levels of $147 per barrel.

The drop in prices, while helping offset some of the pain from the financial meltdown, has undercut investments in the sector. That has led to the delay or cancellation of dozens of projects worldwide and sparked concerns of another oil price spike once demand rebounds.

"Adequate and continuous investment throughout the energy value chain is essential as a means to balancing supply and demand in the future," a statement issued at the end of the meeting said, according to Japan's Kyodo news agency.

The meeting brought together ministers from the 12 Organization of the Petroleum Exporting Countries and many of Asia's biggest oil consumers such as China, India and Japan.

Even as officials warned about the dangers of falling investments, they also voiced worry about speculation in the market. Many in OPEC, including Saudi Arabia, had blamed last year's run-up in prices to almost $150 per barrel on speculators and hedge funds.

"In order to achieve a stable oil market, the influence of excessive speculative activities in the oil exchanges, which lead to price volatility, should be limited through more regulation and control," Hossein Noqrekar-Shirazi, Iran's deputy oil minister for international affairs was quoted as saying by Iran's Press TV.

Saudi Oil Minister Ali al-Naimi urged his colleagues to confront what he said was unfounded fears about supplies, adding that such perceptions had "largely contributed to skyrocketing prices, in the past," the official Saudi Press Agency reported.

The statement issued by the officials said that volatility in the market is harmful to both producers and consumers and that "financial markets have an impact on oil price formation," according to Kyodo. It said officials, tackling the issue of supervision of over-the-counter markets and transparency, called for "further harmonized actions such as introduction of position limits."

OPEC, along with the International Energy Agency, has repeatedly warned about the dangers of falling investment in the oil sector. While many projects have been scaled back or delayed, many of its most influential members have said they are pressing ahead with oil investments despite the downturn.

Saudi's al-Naimi said his country is going ahead with its commitment to raise "its production capacity to 12.5 million barrels per day by the middle of this year," SPA reported. He added that this would help provide excess supply capacity that would cushion the market.

In March, Saudi Aramco, the oil giant run by OPEC powerhouse Saudi Arabia, said it was planning to spend about $60 billion through 2014 on energy projects. The state-run Kuwait Petroleum Corporation said Saturday it had earmarked about $80 billion on expanding production and refinery capacity by 2020.

On Sunday, Kuwaiti Oil Minister Sheik Ahmed Al Abdullah Al Sabah told the meeting the OPEC member will press ahead with planned oil investment projects with an eye to achieve its production target of 4 million barrels a day by 2020. He said Kuwait was teaming up with Asia's top refiner Sinopec Corp. to build a 300,000 barrels a day refinery in China. It was also carrying out a joint venture with Japanese firms and Petrovietnam to build a 200,000 barrel a day facility in Vietnam.

The minister said the "current economic and price environment, coupled with the uncertainty about climate change policies and the future demand outlook, pose serious challenges to our plans and investments," the official Kuwait News Agency reported.

Kuwait, however, has been among those that has scaled back on projects — first by scrapping a joint deal with Dow Chemicals and then by postponing the country's already much-delayed fourth refinery.

OPEC, which produces about 35 percent of the world's oil, has been struggling to engineer a rebound in prices.

The producer bloc held off from enacting new production cuts during their meeting last month, opting instead to focus on compliance with an earlier round of cuts totaling 4.2 million barrels per day from September levels.

But the best it has been able to achieve is preventing an even deeper slide in crude prices, that have hovered between $40 to $50 per barrel most of this year.

Saudi Minister of Petroleum and Mineral Resources Ali bin Ibrahim Al-Naimi has reaffirmed that Saudi Arabia is committed to the availability of petroleum to global markets, especially for developing and emerging countries, pointing out that this pledge is backed by concrete plans and actions, and by the commitment of some $70 billion for capital projects.

Al-Naimi made these remarks in the following speech at the 3rd Asian Ministerial Energy Roundtable in Tokyo:

"Your Excellencies, Ministers and Heads of Delegations, distinguished guests, ladies and gentlemen, good morning. Let me begin by thanking the government of Japan for hosting this third Asian ministerial roundtable for the discussion of long-term oil market stability, conservation, and other vital energy issues. We appreciate this initiative’s forum for frank and thoughtful dialogue between Asia’s resource-producing and -consuming nations, and the reassuring message it sends on our cooperation. I also thank the government of Qatar for co-hosting this important gathering.

Ladies and gentlemen, when our last Asian roundtable convened in Riyadh in 2007, we recognized Asia’s growing significance to the global economy and to energy markets, and emphasized the importance of Asia’s participation in the International Energy Forum dialogue. Two years later, the deepest recession in 80 years complicates the energy scene.

"This current environment is a sharp contrast indeed to the rapid and sustained economic growth witnessed between 2003 and 2007, when global GDP gains experienced their fastest four-year growth periods in 20 years. Nowhere was this prosperity trend more evident than in Asia, as its economic ascension and parallel growth in energy demand signaled an Eastern shift of the world energy market’s gravity center. However, just as globalization contributed to Asia’s rising fortunes, the economic unraveling that began with the sub prime mortgage disaster and subsequent banking and credit crises in the West in mid-2008 has observed no geographic boundaries.

This global downturn is exerting a profound effect on the entire continent of Asia, from the Pacific Rim in the East to the Red Sea in the West. Asia’s impressive economic growth statistics, rooted in its purchasing power, robust trade and consumption, and generous percentage of world central bank reserves, have declined sharply in response to lack of investment capital and slowed global demand. This reversal is clear confirmation that the economic fortunes of our continent and its people are intertwined.

The drying up of liquidity to fund projects underpinning economic growth in emerging and developing economies has been a significant consequence of the recession. This impact on investment is of great concern, notably for energy-sector projects adversely affected by oil price volatility and lower demand for oil, when long-range commitments of adequate and timely investment flows are needed to ensure future supply.

Ladies and gentlemen: oil prices and energy security remain at the top of the international agenda as major, long-term challenges that must be urgently addressed by consumers and producers.

Just in the past year, oil prices took the world by surprise with the great speed in which they rose, and in recent months, they again stunned with their spectacular fall. Just as no one anticipated oil prices would climb to their unprecedented height of $147 per barrel last summer, the precipitous price drop below the $40 mark has likewise been a shock.

"Both price extremes have been unjustified and unsustainable, and such continued volatility poses serious risk. I have often cautioned that if prices remain too low for too long, they can carry the seeds of future price spikes and volatility. Ladies and gentlemen, the bitter yield of such seeds is the danger of impeded recovery, inadequate supplies for the world’s economic engines, and a vicious cycle of price instability.

Clearly it is in everyone’s best interests to explore avenues that can contribute to price stability and foster an investment climate that serves the interests of producers and consumers alike; does not limit the prospects of developing nations that need affordable energy for their economic and social goals; incentivizes developed nations to conserve energy; and creates an environment conducive to the development of all viable energy sources.

As this third roundtable explores how to mitigate price volatility and assure adequate, continuous investment, I believe that our efforts should include open discussion of factors and issues that influence energy demand, and can possibly impinge on the willingness and ability of producers to plan long-range investments for finding and producing energy resources, and to commit research and development to energy technologies and processes, including innovations that enhance recovery of more challenging resources. I believe that we should champion science and technology to enable solutions that enhance energy efficiency and sustainability. I also believe we must renew our commitment to greater transparency by sharing information on policies, statistics and projections, and improving their accuracy, including our support of the Joint Oil Data Initiative development.

Such cooperation and coordination are essential to capacity-building among energy importers and exporters.

"My friends, such multilateral cooperation must also overcome persistent challenges to energy security. One such energy-market challenge is artificial fear, with pessimism about oil supplies and production capacity, unfounded by scientific or economic basis, fostering a perception of scarcity; this very negativity contributed to the oil-price spike. Whether the doubt is rooted in misperceptions of supply adequacy, geographic origin or environmental footprint, I believe such negativity is both unwarranted and harmful.

Energy independence, whatever its motivation, is much easier said than done; the very interdependent nature of our global economy, as observed in this recession, means that no nation can hope for full energy self-sufficiency.

I believe that such misperception must be addressed through the understanding that all viable resources will have a role in the future energy mix, but that fossil fuels inescapably and rightly have a part in that mix. Indeed, fossil fuels will continue to meet some 80 percent of the world’s energy needs for the foreseeable future. Petroleum is a proven, reliable, affordable and safe energy source whose accessibility and sustainability continually increase, thanks to the industry’s emphasis on research and development, and its greater focus on energy efficiency and conservation.

Oil will remain indispensable to global energy demand throughout the first half of this century, if not far beyond.

Ladies and gentlemen, for some observers, the energy pessimism to which I allude is tied to a great optimism that alternative energies can handily circumvent oil’s leading role. While we expect alternative fuels to grow, their economic and social competitiveness will hinge on their passing financial, technical, social and other tests, and on the development of their infrastructures and markets. Until that time, they will supplement fossil fuels, not supplant them.

Given the importance of oil to the functioning of modern society, its role in economic growth and recovery, and future demand that is expected to double the call on fossil fuels, including oil, by 2050, it is vital that producers and consumers alike commit to strengthening global energy trade, investment and cooperation to enhance the flow from production to consumption.

"Ladies and gentlemen, the worldwide recession is slowing industrial growth rates around the world, and the oil industry is no exception; it is feeling the full effects of the financial crisis.

However, Saudi Arabia remains committed to our massive expansion program to raise our production capacity to 12.5 million barrels per day by mid-year. This significant spare production capacity will mitigate any future shortages. The Kingdom has also made an unprecedented commitment to expand our refining capacity, both at home and abroad, to help correct the imbalances between crude-oil quality and refining configurations.

The petroleum industry is a long-range business, with project horizons necessarily spanning decades into the future. Such investment reflects the Kingdom’s commitment, despite current economic conditions, to implement its business strategy and infrastructure development plans to help ensure long-term market stability and availability of energy supplies.

We are confident about the future role of oil, and we are confident that our investment program will yield great dividends for consumers here in Asia and elsewhere.

Today I assure you that Saudi Arabia is committed to the availability of petroleum to global markets, and especially for developing and emerging countries. This pledge is backed by concrete plans and actions, and by the commitment of some $70 billion for capital projects.

For example, in 2005, our national oil company, Saudi Aramco, signed a memorandum of understanding with Sumitomo Chemical of Japan to build a massive, integrated refining and petrochemical complex on the west coast of Saudi Arabia. The resulting company, Petro Rabigh, has begun operations this year, and will be one of the world’s largest integrated refining and petrochemical facilities.

Another success story is the recent signing of the Rabigh Project II memorandum of understanding with Sumitomo Chemical on April 19. This major expansion extends value chains, and affords such benefits as job creation, technical knowledge transfer, and diversification of the Kingdom’s economy.

Ladies and gentlemen, allow me to highlight the key points I hope to convey this morning. Today’s bleak economic and financial conditions notwithstanding, Saudi Arabia believes that energy demand will continue to grow in years to come, from the standpoints of the forthcoming economic recovery, the enduring aspirations of all nations for greater prosperity, and energy-intensive population spikes around the world projected for the coming decades. Energy will be required to fuel this recovery and future demand, and petroleum, which powered the sweeping advances of the 20th century, is ready to serve this new era of growth.

I would like to close by emphasizing my full confidence in Asia as a global engine of growth and development, and a model of cooperation. As members of this great continent, the nations represented here have much in common – not the least of which are mutual respect and mutual hopes for a sustainable future through oil-market stabilization, climate-change mitigation, energy-poverty alleviation, and a return to prosperity for Asia, and for the entire world.

Thank you for your kind attention".

Meanwhile, under the patronage of the Custodian of the Two Holy Mosques, King Abdullah bin Abdulaziz Al Saud, the Minister of Education Prince Faisal bin Abdullah bin Mohammed Al Saud inaugurated "Advanced Technologies Forum (ATF) 2009" organized by King Abdulaziz City for Science and Technology.

The inaugural ceremony was attended by the City's President Dr. Mohammed bin Ibrahim Al-Suwaiyel and Prince Turki bin Saud bin Mohammed Al Saud, the City's Vice President for Research Institutes.

In an augural speech, the Minister of Education said that the wise leadership of the Custodian of the Two Holy Mosques King Abdullah bin Abdulaziz Al Saud, the Crown Prince and the Second Deputy Premier has made it possible to achieve concrete and significant steps in the project of building knowledge-based society and industries.

Prince Faisal bin Abdullah bin Mohammed Al Saud cited some of the successful projects in this regard including the establishment of King Abdullah University of Science and Technology; strong support for the sector of technical, vocational and technological education; the project of Custodian of the Two Holy Mosques for development of general education; and an electronic government project.

He also pointed to the significant trend of the establishment of more universities in the Kingdom of Saudi Arabia as well as the announcement of King Abdulaziz City for Science and Technology of the allocation of almost SR 8 billion for investment in building the systems of science, technology and innovation in the Kingdom, in addition to the plans and projects of King Abdulaziz and His Companions Foundation for Giftedness and Creativity.

On his part, the President of King Abdulaziz City for Science and Technology stressed that Saudi Arabia has made great efforts in the transformation into a knowledge-based society through the creation of a quantum leap in the systems of science, technology and innovation, which are considered as ones of the most important pillars of a comprehensive national policy for science and technology.

On the other hand, Minister of culture and information Dr. Abdulaziz bin Mohieddin Khoja has highlighted the great responsibility of the media as regards tackling local, regional and international economic developments, and said this requires credibility and honesty.

He said the media should take into account the interests of the sector of business as well as the interests of the citizens and consumers in addition to the higher interests of the country.

Inaugurating the Forum on "Economic Information", Dr. Khoja said the role of the media as regards the economic activity is critical and influential and requires Saudi capabilities focusing on specialized knowledge in the economic sphere and the press works.

The Forum is organized by Riyadh's chamber of commerce and industry under the motto of 'media and economy - integrating relations'.

Dr. Khoja underlined the role of the media as regards attaining balance in tackling the problems of the sector of economy and business as well as the aspirations of the citizens in their capacity as consumers of commodities and services.

The information media, either governmental or non-governmental, should adhere to credibility and comprehensiveness in shedding light on the efforts of the state in the service of the citizens.

The media sector is an economic and independent sector, and it is also strategic and productive sector which is linked with awareness and identity, Dr. Khoja said.

Dr. Khoja said the organization of the Forum provides an evidence for the growing awareness of the importance of the media and its impact and contribution to the economic movement as well as projecting a proper idea about the economic development attained in the country.

"Our country, which has been bestowed by a wise leadership, is full of various human and natural resources and has made big strides in the domains of development," he elaborated.

He noted that the admission of the Kingdom to the World Trade Organization (WTO) has put up a great challenge before the Saudi Media organs because the Saudi markets constitute the biggest in this developing world.

Dr. Khoja drew attention to the severe economic crisis facing the world, and said in such circumstances the media plays a crucial role as regards formulating the trends of the governments and nations through providing figures, information, photographs and analysis on the economic and trade activities as well as the impact of this crisis on the societies and nations.

"Thanks to Allah Almighty, and thanks to our wise leadership, our country has been standing away from this crisis which is inflicting the world," he added.

Dr. Khoja underscored the importance of training the youth by the non-governmental media establishments.

He noted that the Ministry of culture and information organized two years ago a workshop on training in the field of media at the Saudi universities with the participation of several leaders in the field of media and lecturers of media at the Saudi universities.

"Our country with its tremendous resources is in need of an increasing number of professionals who are capable of performing their media mission," he said.

Meanwhile, Abdulrahman al-Jeraisi, the Chairman of Riyadh's chamber of commerce and industry, underscored the important role which could be played by the media in all affairs of life.

He noted that the organization the Forum comes in line with the attention being given by the Saudi government to the media and its role in the service of the national economy and development with its comprehensive perspective.

He hoped that the chamber of commerce and industry would play an effective role as regards enhancing training programs in cooperation with the concerned authorities notably the Ministry of culture and information, and the Saudi journalists commission.

The function was attended by a number of senior officials and media delegates and economic experts.