Bloomberg News

Oil Market Well-Supplied Amid New Discoveries, IEF Official Says

March 12, 2012

The global oil market is well- supplied and new discoveries are enough to replace depleting fields, the International Energy Forum’s secretary-general said.

“Even now the market is well-supplied,” Aldo Flores- Quiroga said in an interview in Kuwait today. “New fields are being discovered. There are new areas where sources are being developed. The sources of supply are spreading and this will change the politics of oil.”

The global oil industry needs investment of as much as $700 billion a year, according to some estimates, he said.

Companies including Petroleo Brasileiro SA (PETR4) and Eni SA have discovered new oil and gas fields from Brazil to East Africa as higher oil prices encourage new exploration. Brent crude, trading at about $125 a barrel in London today, has risen 17 percent this year amid concern over supply from Iran, the second-largest member of the Organization of Petroleum Exporting Countries.

“New supplies seem like they’re enough to replace depleting fields,” said Flores-Quiroga. “It puts to rest the fear of there not being enough oil.”

The International Energy Forum, consisting of a group of nations that account for more than 90 percent of global oil and gas supply and demand, will discuss oil price volatility, renewable sources of energy, and energy poverty in a two-day meeting in Kuwait that starts tomorrow. The IEF was founded in 1991 as a forum to discuss international energy security.

To contact the reporters on this story: Ayesha Daya at adaya1@bloomberg.net; Rakteem Katakey in New Delhi at rkatakey@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net


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