4Oil Prices - O il P r ices Price and availability of...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Oil Prices Price and availability of energy are among the uppermost issues on the energy security agenda of both producers and consumers. However they approach it with different concerns. While consumers look at energy security in terms of affordable prices and abundance of supplies, producers see it in terms of predictable market demand and prices high enough to cost justify the massive upfront investments. Producers and consumers alike have important roles to play to assure energy security. Producers should provide enough supply to meet current market demand, and place adequate investments in production infrastructure to be able to meet future demand growth. However, given the long development lead-time and the high level of investment required in energy projects, prices must reflect adequate returns on these projects. Correspondingly, consuming countries should invest in new technology that will improve energy efficiency and reduce undesirable environmental effects of fossil fuel. Clear, stable, long term policies in the consuming countries can help build the confidence investors need -
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 06/03/2011 for the course ECON 201 taught by Professor Jeanmichele during the Spring '11 term at Portland State.

Page1 / 3

4Oil Prices - O il P r ices Price and availability of...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online