Opec issues warning on Bush oil pledge

[RamboLiberal]

http://news.ft.com/cms/s/8d5c9580-9368-11da-a978-0000779e2340.html

The Organisation of the Petroleum Exporting Countries on Wednesday warned that President George W. Bush’s proposal to reduce US dependence on Middle Eastern oil could badly jeopardise needed investment in Gulf oil production and refining capacity.

Opec delegates and officials said the group planned to make this point in its as yet unpublished commentary in the cartel’s January bulletin next week.

Speaking after Mr Bush’s Tuesday night State of the Union address, Edmund Daukoru, Nigeria’s energy minister and president of Opec, said: “We do believe that energy issues cannot be handled in a unilateral way; we all have to work together towards global energy security.”

Privately, Opec officials were more direct in warnings about Mr Bush’s declared intention to reduce America’s dependence on Middle East oil by 75 per cent by 2025. But they emphasised Opec would avoid a confrontational tone in its commentary.

An Opec delegate said: “Comments like that are unrealistic. Everyone knows the world will continue to depend on Middle East imports.” The organisation would raise concerns about such statements damping investment at meetings with the European Union and other organisations “more aligned with Opec’s view”.