G-8 in Rome

Representatives from the Group of Eight developed countries are looking for ways to ensure steady oil and gas supplies at reasonable prices for their own consumers.

At the same time, the G-8 nations would allow moderate price increases to help energy-based economies maintain their domestic development needs, while making it financially worthwhile for energy companies to explore for oil and gas deposits.

In a speech distributed to the media, Roberto Poli, the CEO of Italian energy group, ENI, said "the persistence of high uncertainties related to oil prices up to 150 dollars per barrel, or down to 30 dollars, might upset the entire energy system, blocking investments both in traditional and alternative sources."

"No magic formula"

The G-8 energy meeting -- which includes the United States, Japan, Germany, France, Britain, Italy, Canada and Russia – aims to draft a joint energy strategy, which would be presented to a G-8 leader's summit, scheduled for July in L'Aquila, Italy.

Energy officials from emerging economies, such as Brazil, India, China, Egypt, Saudi Arabia and South Africa, are also participating in some of the discussions.

Addressing the two-day meeting in Rome, CEO Poli said "there are no magic formulas" for setting reasonable oil prices, but estimated that a manageable range would be between 60 and 70 dollars a barrel.

Oil markets require regulation

Such a price, he said, "would encourage oil companies to invest without penalizing economic growth or fostering wastefulness."

In order to stabilize prices, Poli called on governments to institute more regulation of oil financial markets, which he said remained "opaque and uncontrollable".

U.S. Energy Secretary Steven Chu is expected to brief colleagues on President Obama's plans to boost the development of alternative energy sources aimed at reducing dependency on petroleum products.

gb/dpa/AFP
Editor: Andreas Illmer